Liberal Budget Fail

Liberal Budget Fail   April 21, 2025

The Liberal platform promises $130 billion in new measures over four years, adding $225 billion to federal debt. It is hurtful that Justin Trudeau's style of economics is repeated. Mark Carney, the banker, is revealed to be worse at financial management than the previous Liberal finance minister, Chrystia Freeland. There was no timeline to balance the federal budget to end Canada’s downward spiral.

The Liberals are adding new measures over the next four years, that when combined with existing spending, will add $225 billion to the federal debt. This is all borrowed money that Canada does not have. Carney also had to admit that the federal public service had grown at an unsustainable rate of 40% over the last decade under the Liberal administration, but he offered no plausible remedy. This significant increase in debt could lead to higher taxes, reduced government services, and increased interest payments, all of which will have profound implications for Canada's financial future.

One of the largest spending initiatives in the election platform unveiled Saturday is a 1%-point reduction in the lowest income tax rate from 15% to 14%.

There is also a promise to increase defense spending by $18 billion to meet the 2% NATO spending target.

Carney's plan to increase home building is to create a new agency called Build Canada Homes (BCH), which will cost about $3 billion annually. However, there are concerns that this will likely create another inefficient bureaucracy rather than properly incentivize the private sector for home building. The problem is that a government agency is not as efficient or innovative as the private sector in addressing the housing crisis, and the $ 3 billion annual cost could be better spent on other initiatives.

If re-elected, the Liberals promise to provide municipalities with $1.5 billion per year in funding to help reduce the development charges they impose on new construction.

The Liberals describe spending in four main areas:

Social: This category includes supporting the arts, rural transit, Indigenous loan guarantees, and CBC/Radio-Canada. When taken together, infrastructure funding for projects such as high-speed rail, community, and health infrastructure comes to $20 billion over four years.

Security: This file includes the $18 billion in defense spending and more than $4 billion in tariff response funding. It includes about $1.7 billion in additional spending for the RCMP to train more personnel, establish a new training academy, and boost basic pay for recruits.

Protection: This category includes healthcare initiatives such as medical school residencies and youth mental health. When combined, the healthcare initiatives will cost $3.5 billion over the next four years.

Building: The last category includes the $22 billion for housing. It also consists of the $12.5 billion for scrapping their previous mistake on capital gains taxation and the $12.5 billion to extend the Accelerated Investment Incentive.

Revenues: The Liberals only account for tariff revenue in the first year of the four-year plan. Their fantasy wish is that the consequences of the Trump tariffs will have passed by in a year or so.

This year's operating budget deficit is predicted to be just over $9 billion, a staggering figure that the Liberal platform predicts can be reduced to a mere $220 million by 2028-29. This significant deficit raises serious concerns about Canada's financial future, underscoring the urgency.

Overall, in 2025-26, the Liberal platform predicts that the annual deficit will be $62.3 billion. They hope the debt-to-GDP ratio will drop the following year as the annual deficit shrinks to $60 billion. They overlook how rising interest payments crowd out available funds for healthcare support.

In the fall economic statement, the deficit in 2025-26 was projected to be $42.2 billion before dropping to $31 billion in 2026-27. Consequently, the Liberals' financial projections prove to be little more than wishful thinking.

In traditional Liberal fashion, the gap between promise and reality is never reconciled. This lack of transparency and accountability is disappointing, as Conservative Leader Pierre Poilievre pointed out that Carney's platform would make life even more expensive. Mr. Carney plans to run an even bigger inflationary deficit than Justin Trudeau had budgeted, which should make us more skeptical and cautious about the Liberals’ financial promises.

Pierre Poilievre said Mark Carney’s fiscal plan is a ’sneaky accounting trick’ to avoid balancing the budget. Carney promised to split the budget into two streams—capital and operating spending—by balancing the operating side while running capital spending deficits. Given the new Liberal document, Canada would be seriously hurt financially with Carney Liberals at the helm.

Trump is a deceptive distraction. April 6, 2025

 

Trump is a deceptive distraction. April 6, 2025

The media's attempt to steer the election towards standing up to US President Trump is a deceptive distraction. Trump will be Trump, regardless of who leads Canada. His global tariffs have affected many, and Canada is just a small part of his scheme. Carney, with no unique insight or skill to deal with Trump's tariffs, is not the solution. The key to Canada's success lies in our ability to achieve better internal governance that can withstand any international challenge. Carney’s approach has already failed Canada. It's time for wise Canadians to focus on our own issues and not be swayed by false distractions. The answer lies in a majority Conservative government.

For voters, the question of which Canadian prime minister can best deal with Trump is incorrect. The intelligent question is, who can best get our own house in order to then deal with all challenges, such as China, the US, and Russian subversion? Who can best lead this country back to its prominence for the next four years? Ten years of Liberal rule has left us in a state of ruin, and another four years of the same people and a Liberal PM will not fix it. A Conservative majority government is the beacon of hope in an uncertain world. Conservatives saved Canada in the last international financial meltdown in 2008; the same philosophical economic approach can save us again. Donald Trump shouldn't be the excuse for 'Liberal failure'

Dour Mark Carney says he wants to earn the right to remain PM. However, his economic policies have already failed, and he is presenting essentially the same old Cabinet that has devastated Canada. He is trying to show the government as new, and that all past sins and hurtful Liberal philosophy have been washed away. His mantra about a "new government" is dishonest beyond belief.

Carney says in a TV commercial, with soft tones, sitting comfortably dressed in a sweater, that Canada used to build things like homes for average-income people. He does not admit that it was Liberal government policies that hurt Canada, to put us where we are concerning house building. He was the prominent economic adviser to the Liberals and essentially wrote their last Budget. Carney is saying he can rescue Canada from himself. Intelligent people don’t buy it. His list of false statements grows.

Leonard Waverman, professor emeritus and former dean of finance at McMaster University, said. “A Mark Carney win would be good for Donald Trump. When I read about the very pleasant exchanges between President Trump and Liberal leader Mark Carney, I was a bit surprised. Why would President Trump seem to enjoy a conversation with someone like Carney, a proverbial global elitist, educated at Oxford and a former bank governor in Canada and then the UK ?”

“Furthermore, Carney is a committed environmentalist—including being the co-chair for the Glasgow Financial Alliance for Net Zero (GFANZ) and the UN special envoy for climate action—something that Trump normally abhors.”

“It almost causes one’s Machiavellian hat to pop on their head. Ostensibly, everyone in the US administration has known about Canada's poor economic performance since 2014. Flat-lined GNP per capita growth, the lowest labour productivity growth of any economy in the West, large budgetary deficits, and anemic real growth. Most of this happened during the Liberal government's nearly ten years in office.”

“Pinning all of that on the Liberals alone might not be fair, but the party under Trudeau does deserve much of the blame. Canada's dismal innovation and productivity performance did not galvanize them into action while in government. Instead, the Liberals seemed to be more concerned with Canadian content on television and social media.”

“But still, why would Trump prefer Canada to have Carney and another four years of Liberals instead of Pierre Poilievre, who has a real growth agenda? The answer may be simple: the US under Trump does not want a stronger, more productive Canada, one infused with real growth and that can compete with US energy exports. You can't ride a strong, prosperous, and economically secure Canada into oblivion or make it the 51st state.”

“And the Liberals seem to be playing into Trump's hand. Carney stated that reducing the cap on oil and gas emissions would be good since Canada could develop more energy resources. His natural resources minister quickly rebuked him, stating that the cap would remain. Carney quickly reversed himself. To see the supposed saviour of Liberal Party fortunes unable to change his own party's policy is telling.”

“It shows that the Liberal Party, if given another four-year mandate, will be the same party of the last decade, with a new titular leader but with many of the same ruinous policies in place. Bad for Canada, but good for Trump for making America great again.”

On the local scene, Carney does not know Nepean, the riding he's running in. Does Mark Carney know where the Walter Baker Centre is or who it’s named after? Or about the history of the Nepean bell or Ken Ross Park? These are questions locals would have asked him, given the chance, writes Charlie Senack in the Ottawa Citizen.

Liberal Party Leader Mark Carney was in Ottawa recently, but the local news media had very little luck covering his campaign. Locations of his events were kept secret, access to local journalists was denied, and no questions were answered from reporters. This lack of transparency is an insult to Nepean residents, who have the right to hear from the man whose name will be on the ballot in their riding.

It all began on Saturday when local journalists were told they could not cover Carney’s campaign launch in Nepean. On Sunday, Carney had two campaign stops in Canada’s capital, but the events were closed to all media, national or local. “Where’s the transparency or public accountability?” says Charlie Senack

Journalists have a lot of questions. This is one of the most monumental elections in Canadian history. Nepean residents want to meet the man who hopes to represent that riding and hold the county’s top job. Their trust is understandably low.

Since 2015, Nepean has been served by Liberal Chandra Arya, who was told just days before the election call that he would not be allowed to run under the Liberal party banner. In January, he was kicked out of the Liberal leadership race, but no official reasons were given. Subsequent media reports suggest it was related to a trip Arya made to India in 2024. Whatever the reason, Canadians deserve to know.

Charlie Senack writes about Carney's slim connection to Nepean. Nepean is far from home for Carney, who lives in Rockcliffe Park. The differences between the two districts are hard to miss.

Nepean is a suburb with about 130,000 residents. Most working-class folk send their kids to public schools, attend fitness classes at the Minto Recreation Centre, and meet for coffee at the local Timmys. The average income is $62,000. Rockcliffe Park is for the wealthy: the average income there is about $256,000. The homes are lavish, lifestyles differ, and many kids attend private school.

Perhaps Carney needs to brush up on his local history. During his speech outside Rideau Hall on March 23, he mistakenly said Bells Corners was part of Nepean. Surely any candidate should know that a riding review has moved that neighbourhood into Kanata-Carleton.

The party also cannot underestimate the power of the Conservatives. Party Leader Pierre Poilievre used to represent the Nepean riding. This time around, Barbara Bal's name is on the ballot. She lives there, has served on the Fallowfield Village Community Association, and has been knocking on doors for 18 months. Is Carney the change Nepean needs? Of course not.

Mark Carney is a mirage—a reasonable facsimile floated by a honeymoon period of hopes, and for now, a lot of willful blindness by the media about his past. To our detriment, some Canadians will not see it for what it is. Carney's myth-making goes to character. Unlike his comical memory lapses, he has been caught in several lies and outright exaggerations in the campaign. He is not a leader to get the Canadian house in order.

The best way to promote Canada’s interests, defend against trade provocations, and create more substantial international trade options, is to finally deal with our internal political weaknesses, and elect a majority Conservative government under leader Pierre Poilievre. Keep the best and fix the rest.

Carney would have us become more European. Trump wants us to become Americans. Conservatives want us to be even more Canadian. Only Conservatives will restore Canada's promise: where hard work results in a good life—a home on a safe street, protected by solid borders and proper law enforcement, under a proud flag. Canadians must put Canada first.

Brian Lilley in The Sun says it very clearly. "It appears that for some Canadians, the only issue on the ballot for the upcoming federal election is Donald Trump. That’s odd because Trump doesn’t live here, he’s not Canadian, he doesn’t vote here, and he doesn’t invent or implement Canadian policies.”

“Yet, after nearly a decade of the same party in power, a party that was quite unpopular until recently due to their policies, we could very well re-elect the Liberals – not because of them or their leader but because of Trump.” “While the Liberals have changed leaders from Justin Trudeau to Mark Carney, the team around Carney is the same. The thinking that Carney is putting forward is mostly the same as we saw under Justin Trudeau. So, why reward them by giving them another mandate just because of Trump? It wasn't Donald Trump who gave us rising unemployment; it was the Liberals. The Friday report's unemployment rate rose to 6.7% compared to 5% two years ago.”

Pierre Poilievre continues to campaign across the country about vital Canadian issues. He has not succumbed to the ‘talking heads’ about how he must pivot and talk mostly against Trump. This is a Canadian election. It is about replacing our failed economic and social philosophy and bad actors who now have a new frontman. The election is about supporting ethical and wise governance in Canada's daily life. When we get ourselves in order as a nation, Canada can face any challenge and win.

 Compiled by Paul Forseth

Canadian federal election is April 28, 2025.

March 23, 2025March 23, 2025

The federal election is April 28, 2025. The media falsely portrays it as a showdown between two political leaders  -Carney or Poilievre.  Others see it as the eternal human struggle between good and evil. Groups gather to obtain power with political brands and memberships. They create stories to entice voters and sell hopes to chart a national destiny. The first casualty of an election is the truth.

The media would try to make the election all about standing up to US President Trump, which is a deceptive issue. Trump will be Trump, regardless. No matter who is elected Canadian leader, Trump will remain his unpredictable self. The key to Canada’s success is finding better internal governance that can withstand any international challenge. Wise Canadians must take care of business without false distractions.

The nature of media creates a contest that all turn on the whims of a charismatic leader, a form of dictatorship where the winner takes all. The media plays a significant role in shaping the election narrative, often focusing on the leaders' personalities, jokes, and quips rather than the governance policies. However, the mechanics of government are significantly more complex. Judging by the public noise, one would think that Canadians who vote, only give reasons for voting based on emotion, historical prejudice, and slick advertising, regardless of facts, truth, or ethics.

The election campaign for 343 seats in the House of Commons will last 37 days. While other parties are running, the Liberals and the Conservatives are the only ones who have a chance to form a government. The party that commands a majority in Parliament, either alone or with the support of another party, will form the next government, and its leader will be Prime Minister.

When casting your vote, think beyond immediate gain and consider the long-term implications for future generations. This forward-thinking approach is necessary for our nation's enduring prosperity. This election is not about short-term wins but fortifying Canada to withstand any challenge to our country.

In its most basic form, our Westminster Parliamentary model says the political Party that wins the most local voting races to claim seats in the House of Commons, gets the first opportunity to form a working government if it can maintain the chamber's 'voting confidence'.

On March 23, the media claimed that the political contest was a tie with a slight edge to the Liberals, who were severely down in popularity just a few weeks ago. The Liberals seem to look for human saviours, such as their last leader, who brought the Party from third place of 34 seats in 2011 up to a 184-seat majority in 2015, then was forced to resign the leadership as the Liberals faced certain political ignominy at the polls. They now have a new leader who has never been elected to anything, and they aspire to keep political control with a fourth term in office, using the same Ministers with the same political philosophy.

The history of the Liberals has been about obtaining power and keeping it, and by being willing to appear to adapt to the winds of social change through the years. Some of their historical policies include deficit spending, solidifying universal health care, the Canada Pension Plan, Canada Student Loans, unification of the armed forces, multilateralism and official bilingualism, gun control, the patriation of the Constitution of Canada with a Charter of Rights and Freedoms, the Clarity Act, same-sex marriage, euthanasia, cannabis, national carbon pricing, expanded access to abortion, assisted suicide (MAID).

The Conservative Party leadership created Canada in 1867. The Party generally supports conservative social and economic policies such as balanced budgets, a strong federal government with provincial rights for the legislatures, governance under the mantra of ‘peace – order - and good government’, and the Canadian Bill of Rights. Its economic policies include reducing taxes, creating a tax-free savings account (TFSA), and implementing universal childcare benefits. In recent history, they eliminated the long-gun registry, introduced mandatory minimum sentences for violent crime, raised the age of consent to 16 years, permitted the construction of several pipelines, withdrew Canada from the international Kyoto Protocol, and safely guided Canada through the worst global economic crisis since WWII, yet emerging with a balanced budget.

In foreign affairs, they maintained membership in many international organizations while protecting independence, supported the UN and the State of Israel, negotiated the Comprehensive Economic and Trade Agreement (CETA), and negotiated the Trans-Pacific Partnership (TPP). Due to the Conservative administration, Canada has over 100 international trade agreements and active negotiations.

Canada’s trade with the United States dominates the Canadian economy, and Conservatives started the modern era of trade deals with the USA. Canadian politicians have debated free trade with the USA since 1866 when countries mainly used tariffs for international relations. Trade with the United States was the main topic in the 1911 Canadian Federal Election and was led primarily by the Conservative Party in the 1984 and 1988 Canadian elections. 

Although many bilateral agreements reduced tariffs, a freer trade agreement was not reached until the Conservatives developed the North American Free Trade Agreement (NAFTA) in 1994. The agreement increased trade among all three member countries and has dramatically benefitted Canada, the USA, and Mexico.

How did we get here politically for 2025? The current standing in the House of Commons is Liberal 152, Conservative 120, Bloc Quebecois 33, NDP 24, Green 2, Independent 3, and Vacant 4. The Liberals have held a minority government since 2021 with the support of the NDP.

On January 6, 2025, Trudeau announced his pending resignation as leader of the Liberal Party and as the Prime Minister of Canada. He asked Governor General Mary Simon to prorogue Parliament until March. Proroguing Parliament, a constitutional power of the Governor General, effectively ends a session of Parliament. The Liberal Prime Minister was forced to resign in disgrace and was quickly replaced by Mark Carney. Mark Carney, the former governor of the Bank of Canada, won a brief internal leadership vote and was sworn in as Prime Minister on March 14. He appointed a new Cabinet, beginning the 30th Canadian Ministry. He has chosen to try and extend Liberal power via a national election on April 28, 2025.

According to the polls, cost-of-living issues continue to dominate Canadians' priorities. Many ranked inflation and the cost of living as their top priority. Healthcare took the second spot, and other pocketbook issues dominated the rest of the list. Housing availability was critical, followed by immigration, employment, and jobs. Taxes, poverty, social inequality, and government debt were also mentioned.  While the new Liberal leader tries to run against his Party's record, it is an unacceptable legacy that cannot be endorsed at the ballot box.

Canada, under failed leadership, is only now trying to play catch-up about internal trade barriers. By not investing in internal trade links, national pipelines, and a national electrical grid, Canada has been left vulnerable to international markets. Despite positive political talk about our north over ten years, the government has failed to deliver.

The best way to promote Canada’s interests, defend against trade provocations, and create more substantial international trade options is to get our house in order and elect a strong majority Conservative government under leader Pierre Poilievre. Keep the best and fix the rest.

Carney would have us become more European. Trump wants us to become Americans.  Conservatives want us to be even more Canadian.

Only Conservatives will restore Canada’s promise: Where hard work results in a good life - a home on a safe street, protected by solid borders and proper law enforcement, under a proud flag. Canadians must put Canada first.

-compiled by Paul Forseth

 

Carney and truth?

March 19, 2025

Liberal Leader Mark Carney keeps showing he has a problem with the truth.  Liberal supporters looking for a rescue, take note.  Carney had a questionable history at the Bank of England, and left before his term ended.  In his first little speech in front of Rideau Hall as Prime Minister, he falsely tried to present the Cabinet as new.  All were old Trudeau stalwarts who are accountable for the disastrous Trudeau economic legacy.

In an interview, Carney falsely claimed he helped balance the budget with Paul Martin, a claim that is simply not true.  He also told untruths during the Liberal leadership clubhouse TV chat.  His assertion that he helped Paul Martin balance the budget was the most egregious of these.  He said, “It was my privilege to work with Paul Martin when he balanced the books and kept the books balanced.”  The reality is that Mark Carney never worked with Paul Martin, and played no role in balancing the books under the direction of Jean Chretien with political help from the Reform Party, leading to the first fully balanced budget in 30 years.  Carney wasn’t working for the federal government at that time, as he was still with Goldman Sachs.  He never did work with Paul Martin, the finance minister, as he left Goldman Sachs to become a Deputy Governor at the Bank of Canada in 2003.  In 2004, he took a position as associate deputy minister of finance, but by then, Paul Martin was prime minister, and the budget had long been balanced.

As chair of Brookfield Asset Management, Carney was complicit in the decision to move the company's head office from Toronto to the U.S., taking Canadian jobs with it.  Despite his role in this decision, he falsely claimed that because the decision taken by the board last fall was only formalized in January, he had nothing to do with it.  This blatant attempt to avoid accountability is a slap in the face to the Canadian public.

To insult voter intelligence, he claimed he saved Canada’s economy during the 2008-09 financial crisis.  He only played a partial role at arm's length from Prime Minister Stephen Harper and his great Finance Minister Jim Flaherty.  Carney’s part was made easy due to the fiscal, budgetary, and political decisions made by Harper and Flaherty.  Carney played the damnable act of "stolen valor."

Carney has been very evasive about his many ownership conflicts of interest, dismissing all media questions by boasting that he placed ownerships into a blind trust before the date required.  In recent interviews, he pretended amnesia about what went into the trust.  During a persistent media scrum, when not wanting to answer with truth and disclosure, he responded with churlish contempt to the questioner to avoid substance, like a child caught in a lie.

The Liberal pattern of deception and self-interest seems to be repeating itself.  It has become a cultural conclusion that former Liberal Prime Minister Paul Martin, when he was Finance Minister, cheated about his 'trust', and also shaped Canadian law to favour his companies.  This pattern of Liberal leadership behaviour should serve as a warning to all Canadians.

Carney recently held a fake signing ceremony to end the carbon tax, perhaps trying to mimic President Trump’s signing of his infamous executive orders.  In the presence of some of his cabinet ministers, Carney signed a meaningless document for media consumption.  The actual paperwork had to be accomplished later to process a real Order in Council that only becomes viable if the Governor General signs.  It seems the media knows more about the Prime Ministerial process than the actual Prime Minister.

Without any electoral legitimacy, Carney now represents Canada abroad as Prime Minister.  We can only hope that voters will soon end his maneuvers.

Carney has made claims about having done things he hasn’t done or exaggerated his role while also denying moving the Brookfield HQ when the record shows otherwise. The man who is Prime Minister is showing he has a problem with the truth, just like Justin Trudeau.

 

Tariffs Against Canada

 

March 16, 2025

The United States's tariff policy is now focused on dealing with its yearly deficit in federal spending. The US is in trouble with its annual budget. It had a disastrous federal shortfall of $1.83 trillion in fiscal 2024.

Trump is responding in several ways. The first is a significant budget Bill that calls for trillions of dollars in spending and tax cuts, which must not deepen the deficit while keeping tax levels low.

The next is internal efficiencies found through Elon Musk's Department of Government Efficiency. Finally, tariffs are a revenue source and an incentive to reposition investment into the United States.

The plan is to impose tariffs on countries worldwide. The countries that submit to the US may be able to mitigate tariffs in exchange for US advantages.

As a direct response to Trump's actions, Canada has retaliated by applying a 25% tariff to some $60 billion worth of American goods entering Canada. This tit-for-tat escalation is a clear sign of deteriorating US-Canada relations. If the US continues its aggressive policies towards Canada, more Canadian tariffs are on the horizon, further straining the relationship.

To help politically with the American voter, Trump has been ‘trash-talking’ against Canada to justify his economic aggression.

Here is a fact check of Trump’s false statements, a crucial exercise in the current political climate to keep the public informed and empowered. 

Canadians' views on becoming the 51st state: In January, Trump falsely claimed to reporters that the people of Canada liked his idea of Canada joining the US. In fact, all polls show the idea is massively unpopular with Canadians. All Canadian political leaders have vehemently rejected the notion. The nation felt insulted and betrayed by its friend.

The US trade deficit with Canada: Trump has repeatedly said the US has a $200 billion trade deficit with Canada. That is false. Canada is the USA's best international customer. Take Canadian oil out of the equation, and Canada has a trade deficit, and the US has a surplus of $58 billion. Canada also subsidizes the US, as the US does not pay the world price for Canadian oil but gets an insider deal. The US must import oil to meet its needs.

Canada’s tariffs: Trump falsely claimed that Canada is among the highest-tariffing nations worldwide. In fact, Canada has relatively low tariffs, though it has now announced new retaliatory tariffs in response to Trump's tariffs on Canada. Canada was just 102nd-highest on a World Bank list of 137 countries' trade-weighted average tariff rates in 2022 – and had a lower average (1.37%) than the United States (1.49%).

Canada's dairy tariffs: Trump falsely claimed that Canada's dairy tariff situation was well handled when he left office the first time, but they kept raising it under Biden. In fact, Canada did not raise its dairy tariffs during the Biden administration. The tariffs Trump is denouncing were left in place by the US- Mexico- Canada Agreement that Trump signed in 2018, though that agreement secured greater US access to the Canadian dairy market, which they have not filled. The US dairy industry is also highly subsidized.

Trump also fails to mention that Canada's high dairy tariffs only apply after the US has hit a certain Trump-negotiated quantity of tariff-free dairy sales to Canada. The US is not hitting its zero-tariff maximum in any category of dairy sales in Canada, so tariffs aren’t being applied.

Canada’s imports of US agricultural products: Trump claimed that Canada doesn’t sufficiently import US agricultural products. This is false. According to the US Department of Agriculture, Canada was the world's second-largest buyer of US agricultural exports in 2024, purchasing about $28.4 billion.

While Canada does limit foreign access to its dairy, egg, and poultry markets, these are exceptions rather than the rule. This is done to prevent dumping and boom-and-bust cycles. It also supports family-sized farms against large corporate takeovers. On its website, the US Department of Agriculture notes that almost all US agricultural exports to Canada face zero tariffs or quotas. Canada consistently ranks among the top markets for US agricultural product exports, representing one of the most significant and reliable trading partners.

Canada and US banks: Trump falsely claimed Canada prohibits US banks. While Canada's high-quality regulations have discouraged some foreign banks from opening retail branches, Canada does not forbid these banks, as US banks have been operating in Canada for over a century. The Canadian Bankers Association industry group says, "There are 16 U.S.-based bank subsidiaries and branches with around C$113 billion in assets currently operating in Canada and that U.S. banks now make up approximately half of all foreign bank assets in Canada."

Canada, Russia, and China: Trump falsely claimed that Canada joining the US would secure Canada "from the threat of the Russian and Chinese Ships that are constantly surrounding them."  Canada has never been surrounded by Russian and Chinese ships. A few Russian and Chinese military ships and jets, as well as Chinese research vessels, were viewed with suspicion by Canada and the US and have been occasionally spotted in recent years in the vicinity of Alaska – and have been monitored or intercepted by both the Canadian and US militaries in coordinated protection.

The Canadian government has warned that among the potential threats in its Arctic, was increased Russian activity and Canadian air approaches, and China’s regular deployment of dual-use research and military application vessels as surveillance platforms to collect data. Canada was never surrounded. Canada is strongly investing in northern protection.

Trudeau and the trade war: Trump falsely said in a social media post: “I think that Justin Trudeau is using the Tariff problem, which he has largely caused, to run again for Prime Minister.”  Trudeau’s successor as Liberal Party leader and Prime Minister has been installed according to the Canadian plan. Mark Carney is now Canada's Prime Minister and will soon call a national election.

Canada's defense spending: Trump falsely claimed that Canada spends "less than 1%" of GDP on defense. Official NATO figures show Canada spent an estimated 1.37% of GDP on defense in 2024, up from an estimated 1.31% in 2023. That is short of NATO's 2% target, which incoming Prime Minister Mark Carney has vowed to meet by 2030. It is not as low as Trump claimed. However, Canada ranks 7^th highest in actual money spent among NATO's 32 countries. Tariffs make it harder for Canada to increase its defense spending.

President Trump claims he's targeting Canada because he's concerned about Canada’s supposedly lax approach on the border to fentanyl and migrants. It was the initial false excuse for using emergency powers. Otherwise, it would take an act of Congress.

Data shows Canada has more reason to worry about what's going north into Canada from the US. There's been an influx into Canada of illegal aliens, drugs, and guns, which fuels crime, death, and addiction. Canadian officials seized more illicit drugs coming from the US last year than what the Americans captured on their side of the 49th parallel. Criminal activity is a concern on both sides.

The Canadian Border Services Agency measures cannabis, hashish, cocaine and crack, heroin, some opioids (like opium, methadone, and morphine), and drug-related precursor chemicals seized in grams. Transnational criminal organizations profit from substances that cause great harm to both countries. Canada lives next door to the largest weapons market in the world, and the largest drug market in the world. Capacity creates its own demand, and since the US is such a huge market for general crime that is without adequate suppression enforcement, nefarious opportunities are filled by criminals.

In response to crime coming to Canada, as well as Trump's complaints, Canada assigned an additional $ 1.3 billion for border enforcement to assuage US concerns about drugs and migrants. However, the real benefit is for the public safety of Canadians in terms of having additional resources to interdict illicit firearms and a host of other drugs coming north.

Canada is not a significant source of drugs entering the U.S.  Less than one percent of all fentanyl seized in the US comes from Canada.

In conclusion, Trump's goals are simple but challenging to achieve with his ham-fisted method. Cultures do not respond well to threats and aggression. Sometimes, tariffs help discourage bad behaviour, such as foreign dumping of goods below cost to dominate and control a market.

However, blanket tariffs against years of developed supply chain efficiencies hurt everyone and will not result in a new era of "made in the USA."

Additionally, the USA has ruined its international reputation as a reliable partner and treaty keeper, as trust has evaporated. Instead of professionally negotiating over problem inequities and disparities, the USA is alienating the partners it needs for resources and the customers it would like to have for its products.

The path the USA is on will devolve into isolation and economic stagnation. International evil tyrants will be emboldened, and the world will become a more dangerous place. Disturbing the world economic order to such a degree will possibly give rise to new forms of terrorism onto American soil. The future looks dark.

Source Significantly from  Daniel Dale, CNN March 12/25 and varied internet articles.

 

The USA puts tariffs against Canada

 

March 5, 2025

The USA has imposed tariffs on Canada. These tariffs are unjustified and appear to be ideological rather than fact-based.

The United States administration has decided to impose 25% tariffs on Canadian exports and 10% tariffs on Canadian energy. This has unsettled most Western nations concerning USA's reliability.

An initial excuse was illegal drugs coming over the border. While less than 1% of the fentanyl intercepted at the US border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike. To be cooperative and responsive, we implemented a $1.3 billion border plan with new helicopters with infrared sensing, boots on the ground, more coordination with US security agencies, and increased resources to stop any flow of fentanyl. We appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organizations, launched the Joint Operational Intelligence Cell and established a Canada-U.S. Joint Strike Force on organized crime. In partnership with the United States, fentanyl seizures from Canada have dropped 97% between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by US Customs and Border Protection. The drug problem at the border was solved.

To circumvent the legal limits of Presidential Executive Order power versus Congressional Law authority, the topic of fentanyl has been the excuse but not the reality. Canadian border officials captured more drugs coming in from the US than their American counterparts caught going south, according to data from both countries. US Customs and Border Protection data shows far more fentanyl came into the US through their own coastal ports directly, compared to what was seized at the Canadian border last year. Additionally, there would not be such a great drug problem if market demand was reduced through proper drug enforcement within the US.

Canada will not let the unjustified tariffs go unanswered. Canada will respond with 25% tariffs against many American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days. Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the US administration to reconsider their meanspirited tariffs, Canada remains firm in standing for our economy, our workers, and for treaties to be kept. Discussions are ongoing. The existing legal dispute mechanisms are also being used.

Canada should not be punished to pay for American fiscal deficits and USA overspending. Outside of the value of Canadian energy sent to the US, Canada buys more American general goods than it sells southward. Additionally, Canada subsidizes the USA price of its energy sold to the USA.

As a result of these tariffs, Americans will face increased costs for everyday necessities such as groceries, gas, and cars. This could lead to the loss of thousands of jobs. The tariffs disrupt a successful and fair trading relationship and violate the trade agreement that President Trump negotiated in his last term.

Historical data does not support the notion that tariffs will increase jobs and general manufacturing in the USA. While a few jobs may be gained from repositioning, the economic disruption will likely cause larger overall job loss in both the USA and Canada. The accounting numbers make it clear that everyone loses. The new US tariff policy has been made on emotions, without a professional analysis of the facts.

Canada, the USA's greatest friend, has been attacked with hurtful tariffs without justification. The arguments in favour of tariffs fail even the most straightforward analysis. 

The Conservative Promise

Feb. 15, 2025: Pierre Poilievre delivered a major speech on National Flag Day showcasing plans to put Canada First.  The tariff threat has proven Conservatives right on everything, and Conservatives have been talking about these Canada First ideas for over two years.  Below is a list of many common-sense ideas that Pierre Poilievre has announced.  He has placed positive Canada-first policies on the table.

Retaliate with dollar-for-dollar tariffs against America's unjustified tariff threats, with 100% of the proceeds going to reimbursing businesses and workers that are directly impacted.  The rest will go to tax cuts for Canadians.  Not one penny will go to other government spending.

Repeal the unconstitutional No-New Pipelines Law C-69 within 60 days and replace it with a new law that protects nature and gets projects approved within a year of an application.

Immediately green-light all federal permits for the Ring of Fire in Northern Ontario to harvest chromite, cobalt, nickel, copper, and platinum.

Take back control of our Arctic by establishing the first permanent Arctic base since the Cold War in Iqaluit, two extra heavy icebreakers for the Navy, and 2000 more Canadian Rangers to keep the true north strong and free.

Bring together the Premiers within 30 days of forming the government to agree on removing as many interprovincial trade barriers as possible.  Poilievre will prioritize agreeing on a standard set of trucking rules to get billions of dollars of goods moving east-west and offer provinces a Free Trade Bonus to get a deal done.

Create a Blue Seal Professional Licensing Standard recognized in each province so doctors, nurses, and engineers can work in all provinces and territories, and those Canadians trained abroad can quickly get certified and work in Canada up to our standards.

Remove GST on new homes under $1 million, saving $40,000 or $2,200/year in mortgage payments on a $800,000 house and bringing more jobs for our trades workers.

Within 60 days of becoming Prime Minister, Poilievre will name a Tax Reform Task Force of entrepreneurs, inventors, farmers, and workers to design a Bring it Home Tax Cut that will lower taxes on energy, work, homebuilding, investment and making stuff in Canada as well as 20% less paperwork by simplifying tax rules.

Incentivize Indigenous leaders to support energy projects by letting companies pay a share of their federal corporate taxes to local First Nations.  This will help First Nations create their own source of money for clean drinking water, schools, job training, and more.  These projects will make First Nations the wealthiest people in the world, while we get things approved and make Canada more self-reliant.

Reverse Liberal Bill C-5 and Bill C-75 and impose life sentences for fentanyl kingpins to shut down drug manufacturing and superlabs, saving lives.

Take back control of our border by sending military troops and helicopters to the border now, adding 2,000 new border agents, and giving CBSA powers for full border and more.  Build border surveillance towers and deploy truck-mounted drone systems that can spot border incursions and track departures so we know which people who have been deported have actually left.

Install high-powered scanners at all major land crossings and shipping ports to spot drugs, guns, and stolen cars inside containers or vehicles.

End cancel culture and stop the war on our history by building a monument to the brave Canadians who fought in Afghanistan, strengthen penalties for those who tear down or deface our symbols, and restore Canadian heroes like Terry Fox, the Famous Five, and our Indigenous peoples to the passport.

Massively expand the Cadet Corps and the Junior Rangers to bring together our youth from across the country and learn, under the mentorship of members of the armed forces.

Create more exchanges so a teenager from Mississauga might get the chance to do an Arctic Patrol in Inuvik, learning the wilderness and survival secrets of the great Inuit Rangers.  We will expand these immersion spaces to 10,000 more youth to cross the two solitudes and strengthen our official languages.

Restore in-person citizenship ceremonies and add the following words to the existing oath: "I pledge gratitude to those who worked, sacrificed, and gave their lives to defend the freedom I now enjoy and build the country of Canada I call home.  Like them, I pledge to fulfill my duties as a Canadian citizen.”

National Flag Day Ottawa

Feb.15, 2025

In an enthusiastic packed room of 1000 supporters in Ottawa, Pierre Poilievre said, "We will never be the 51st state". He spoke for an hour about a Canadian vision and needed policy remedies that only Conservatives could deliver.

Conservative Leader Pierre Poilievre warned U.S. President Donald Trump not to turn a "loyal friend into a resentful neighbour" with incessant threats of tariffs on key sectors of the Canadian economy and of making Canada into the 51st state.

"Sometimes it does take a threat to remind us of what we have, what we could lose, and what we could become," he told the crowd. "The unjustified threats of tariffs and 51st statehood from Donald Trump have united our people to defend the country we love."

Speaking to Americans, Poilievre gave them two options. The first would be to carry out an "unprovoked attack" on the Canadian economy with tariffs, making all consumers pay more, workers making less money, and gas prices skyrocketing.

"You will turn a loyal friend into a resentful neighbour, forced to match tariff with tariff and to seek friends everywhere else; both our economies will weaken, leaving less money for defense and security, and our enemies will grow stronger."

Or, the second option would see Canada and the U.S. trade even more, bringing a wave of optimism as it would make consumers pay less for goods and workers have more money in their pockets.

"I would ask you this question, which other country would you rather have as your neighbour? If Canada is not your friend, who is?” he asked Americans.

Poilievre said Canadians are nice and polite, slow to anger, and quick to forgive. “But never confuse our kindness with weakness,” he said, prompting loud cheers from the crowd.

"Let me be clear: we will never be the 51st state. We will bear any burden and pay any price to protect the sovereignty and independence of our country.”

Poilievre also accused the Liberal Party, and especially their leadership contenders, of instrumentalizing the looming threat of tariffs to distract from their record. He also said many of them prove that Conservatives were "right on everything."

"Everyone now admits…that Conservatives were right on the Liberal capital gains tax, that Conservatives were right on the carbon tax, on pipelines, on LNG, on fentanyl, the borders, immigration, and the need to celebrate rather than cancel our proud history," he said.

The rally was an exclamation mark on a broader message change by the Conservatives, which sees moves beyond calls for a “carbon tax election” to a campaign theme more in tune with the current moment, battling multiple threats from Trump and strengthening an independent Canada.

That did not stop Poilievre from attacking Mark Carney, seen as the frontrunner to become Liberal leader, on his promise to “change” the consumer carbon tax.

“Mr. Carney will pause the carbon tax, hide it out of sight, so that you won’t see it for the duration of the election period,” said Poilievre. “God forbid, if he were elected, he would bring in a much bigger tax that has no rebate whatsoever.”

“They will be popping the champagne at the Trump Tower when ‘Carbon Tax Carney’ comes in,” he added.

Poilievre fleshed out his election promises, promising a 'patriotic tax cut' for Canadians if he is elected prime minister. This tax cut, he explained, would put more money in the pockets of hardworking Canadians, stimulating the economy and benefiting all. He also pledged to axe the sales tax on new homes, making homeownership more affordable for Canadians.

He got some of the loudest cheers when promising to cut foreign aid to “dictators and terrorist groups,” bringing back Canadian symbols and figures such as Terry Fox in passports, and restoring in-person citizenship oaths but improving the words of the existing oath.

Conservatives made a big splash with the “Canada First” rally on National Flag Day.

National Poll 338  updated Feb. 9, 2025  CPC 42%, LPC 26%, NDP 16%, BQ 8%, GPC 4%

(Sources CBC, CTV, National Post)

 

The Canadian Challenge

Trump's challenge to Canada has changed Canadians' attitudes about commerce with the USA.  Jokes about Canada becoming the 51st State are no longer funny to Canadians.  Amazon offers flags and other political promotional material about Canada being the 51^st State, but Canadians are not buying.  Our international outlook may never be the same.

Our nation is currently engaged in a profound reevaluation of our relationship with the USA.  The shockwaves were palpable as Canadians grappled with the harsh and unfounded criticisms from the American President.  The initial remarks falsely claimed that we owe the USA and are subsidized by them, were a direct assault on the trade agreement established during the previous Trump administration, a deal that favoured the USA.

On November 30, 2018, Canada, the United States, and Mexico signed the updated Canada-United States-Mexico Agreement (CUSMA).  Investment decisions were then made based on those treaties.

President Kennedy said it best.  Concerning the USA, geography has made us neighbours.  History has made us friends.  Economics has made us partners.  And necessity has made us allies.  Unfortunately, the value of mutual respect has now evaporated. 

Canada has rescued the USA at many critical times and is also a partner in countless endeavours.  Sadly, Trump's statement about revoking his trade deal with us broke something profound.  The surprise reverberated worldwide, and the USA is no longer regarded as a stable, honest partner that abides by the agreements it signs.  Unilateral policy behaviour has its consequences. 

Despite the challenges and uncertainties we face, Canada remains resolute.  We will continue to negotiate, striving to prevent the worst-case scenarios.  We do not seek conflict, but rather cooperation for the betterment of all.  We stand as a sovereign and independent nation, not subservient to any.  The respect and dignity we extend to other countries should be reciprocated by our closest allies.

A 30-day suspension from 25% tariffs was obtained, postponing the international commercial disaster of a trade war.  Such a tragedy may still come, regardless of how honourable our response.  Because of the reprieve, the Prime Minister’s minions are claiming a big boost for him in the polls, but as of Feb.9, it was CPC 42%, LPC 26, NDP 16, BQ 8%, and GPC 4%. 

The Canadian government made big promises to change its behaviour concerning spending on border protection.  However, changing its truancy at the NATO table will be problematic.  The economy has been so poorly managed that Canada has no economic room to restore credibility to our military and fulfill our obligations under NATO, NORAD, vigilance for our northland, and UN Peacekeeping.

Canada needs better leadership to insulate its sovereignty against external forces. We must use wise alternative policies to stand up for ourselves.  Our geography remains, and the USA is not going away.  We will always be the United States’ northern neighbour.  We must wisely manage to insulate ourselves from external coercion and defend our sovereignty.

Our leaders have long championed the importance of trade diversity.  Now, more than ever, there is a renewed commitment to action, focusing on strengthening ties with the Commonwealth, particularly Australia, New Zealand, the European Union, Japan, and Mexico.  Canadians are also making conscious efforts to diversify their shopping habits, seeking alternatives to American goods. 

Nevertheless, nearly 50 percent feel that a Conservative government would be better positioned to deal with tariffs and the unpredictable President Trump.  The threats have been unifying for Canadians.  What is clear is that we will never become the 51st State.  It is unclear if we can fulfill our Constitutional promise that Canada is an internal free-trade zone for goods, capital, and labour.

The Canadian Constitution states that Canada is an economic union.  Under section 121 of the Constitution Act of 1867, goods from one province shall be freely admitted into any other.  However, the Supreme Court ruled differently in the Comeau case.  It stated that provincial free trade cannot impede provincial governments' regulatory actions.  This ruling, which prioritizes regulation and protectionist measures over free trade, disregards both the plain meaning and historical intent of section 121, and substitutes its own vision of the role of government.  It sets aside the words of section 121 as incompatible with the functions that the Court believes the State should serve.  This ruling has made Canada more vulnerable to US trade policy.  

Thankfully, Conservatives have a remedy plan.  

 

Trump betrays Canada

The news buzz involves crushing tariffs against Canada and Mexico imposed by the USA President Donald Trump.  But it is really not about the minutia of what drugs go across the border, general trade imbalances, or all the stated complaints made by Trump.  The executive order says specific things just to make tariffs legal, but the mentioned items are just the excuse, not the real long-term agenda.  There is a motive behind Trump’s lying trash talk about Canada.

The reality is that Canada is under attack from an aggressor who desires our subjugation.  Trump said it clearly that he wants Canada to be part of the USA.  No amount of our economic or policy placation will change the larger long-term goal.

Trump’s crazy idea is an Empire, the ‘golden age’ of the USA, a golden Trump Tower of a country to dominate the vassal neighbour countries (Canada & Mexico).  The only mitigation one can obtain in defence is where the emperor is hurt directly on his goal, or his Oligarchs suffer that he has surrounded himself with.

Canada is in the opening stages of a war of aggression by nonmilitary means. If Trump’s actions are not stopped and we continue to resist, the attempt to use the US military against us is on the list, albeit way down at the bottom at this point. It is unthinkable, but we must understand the aggressor’s larger goal.

Putin miscalculated that Ukraine would be a pushover, and Trump has miscalculated that he could bully Canada into submission.  The American population has not yet caught on to the larger geopolitical agenda.  Trump’s early incremental steps are justified by lies to make them legal.  The next stage is raw illegalities.

Trump has described the golden empire he wants to build.  He shows no human compassion for the disruptions he knows everyone will endure as he unfolds his real agenda.  There is no end to it, but he will take his consuming enterprise as far as he can go.

The unfolding stages of subjugation of peoples for territory and control have been seen many times in history.  What have we learned about how to deal with it?  Certainly not appeasement.

Canada is at war.  Most democratic people on both sides of the border don’t realize it yet.  Trump has published his agenda in books.  A large segment of the USA population at this stage agrees with his lies and are willing facilitators.

Now that unrestrained Donald Trump is emerging on the international stage in a horrific fashion, analysts are reflecting more deeply on his personality, foibles, biases, and deeper life motivations.

Trump’s niece, Mary L. Trump, a qualified psychologist, published an insightful book in 2020, “Too Much and Never Enough: How My Family Created the World's Most Dangerous Man”.

Her book was praised as insightful and forthrightly written, from the view of a family insider with the ring of credibility and engaging nuance.  Trump and his agents also discredited it in an effort for damage control.

Mary Trump (59 years) holds a PhD in clinical psychology.  She writes a succinct description of her uncle, Donald Trump.  She describes a highly flawed individual whose self-absorption and self-aggrandizement over decades have made him into an unpredictable and scary man.  Given his position as President of the United States, she describes that he is ill-equipped and unsuitable for office  -no empathy, insightful understanding, compassion, etc.  She concludes that there is no hope of a change in character for Trump, considering his age and lifetime behavioral pattern.  His disturbed character traits have been inherent since childhood, and he is now a senior citizen; as the saying goes, “He is fully baked”.

Governments will deal with the agonizing technical details of his fraudulent aggressive enterprise.  The public will eventually grasp the essence of the man as their personal lives are affected.  There are dark days ahead. 

Thomas Hobbes said the grim reality of war is that force and fraud are its two cardinal virtues. Trump has abundantly presented himself over the years as a sociopathic liar who lacks empathy and is motivated by personal gain.  However, Trump will never realize his “golden age for America.”  Before events turn, there will be grim days ahead for Canada.

Proverbs 20:17 What you get by dishonesty you may enjoy like the finest food, but sooner or later it will be like a mouthful of sand.  At first, the bread of lies tastes sweet until guilt reduces it to gravel in the mouth.

I am a Canadian Conservative who believes in peace, order, and good government.  I have faith that Canadians will rise to the challenge with courage, pragmatism, balance, and resolve.  Canada has been betrayed by our historical friend and international ally. Nevertheless, we will always be Canadian.

The fix is in for Mark Carney

Photo Internet web capture

Since the fix is in for Mark Carney to take over as captain of the Liberal ship of fools, we must ask who he is. He has been hanging about Justin Trudeau for quite a while as an advisor for the last Liberal Budget 2024 and the subsequent updates presented by Finance Minister Chrystia Freeland.

As a Liberal insider, on September 9, 2024, Carney was named by Justin Trudeau to chair the Liberal Party of Canada's Leader's Task Force on Economic Growth. Later, Carney was proposed as the next Canadian Finance Minister, which caused Finance Minister Freeland to resign.

She was deputy Prime Minister from 2019 and Finance Minister since 2020. She resigned on Monday, December 16, 2024, which caused a media stir. It was a misstep too far for Prime Minister Trudeau, and in disgrace, he had to announce that he was leaving politics.

Mark Joseph Carney, a 59-year-old Canadian economist, has a professional background. He served as the eighth governor of the Bank of Canada from 2008 to 2013 and later as the 120th governor of the Bank of England from 2013 to 2020.

Carney was born in March 1965 in Fort Smith, Northwest Territories. When Carney was six, the family moved to Edmonton. He has three siblings. Carney attended St. Francis Xavier High School and has a bachelor’s degree from Harvard. He did postgraduate studies at Oxford UK and obtained Master's and Doctoral degrees. His thesis was ‘The Dynamic Advantage of Competition’.

His father was the Liberal candidate for Edmonton South in the 1980 federal election and placed second.

He is a member of the elite ‘Group of Thirty’, an esteemed international body of financiers and academics, and also a member of the ‘World Economic Forum’. His global outlook is further evident in his book, 'Value Building a Better World for All,' published in 2021.  

While at Oxford, Carney met his wife, Diana, a British economist. She is active in environmental causes. They married in 1994 and have four children. They moved to Ottawa when Carney left the Bank of England.

Carney speaks passable French. He holds Canadian, Irish, and British citizenship and is a practicing Catholic.

In October 2023, Carney endorsed the UK Labour Party, characteristic of his left-leaning orientation. Following Labour winning the 2024 UK election, Carney was part of that government's task force to create the British National Wealth Fund.

After much background media maneuvering emanating from the Prime Minister’s Office, on January 16, 2025, Carney officially announced that he was running for the Liberal leadership. The Liberal Party announced that its next Leader would be revealed on March 9, 2025. 

Carney is no savior for Canada as he continues Trudeau's disaster policies. He's an elite technocrat without experience or empathy for the plight of average Canadians who have suffered under his financial prescriptions.

Heaven help us all.

https://nationalpost.com/opinion/terry-newman-the-alternative-to-justin-trudeau-is-back-after-fleeing-media-questions

Trump, taunts and trade—Canada’s response is a decade out of date

 

Trump, taunts and trade—Canada’s response is a decade out of date, says Ross McKitrick Professor of Economics, University of Guelph

We can count on Ross to have an outlier opinion that is apart from the legacy media talking head conversation.  There will be many turns to come for Canada – USA relations in 2025. 

Our focus should not be so much about what President Trump says each day, but rather about what we are doing within our own house to clean up, repair, and properly behave with responsibility.  Canada needs to get a conservative mindset into Ottawa as soon as possible.  It remains that far too many Canadians still buy into the leftie myths on economics, and their lying prejudice of anti-conservatism.

In actual policy change, Canada needs to get to a balanced budget as soon as practical.  Eliminate waste (Liberals) and unleash and open up the economy (flush NDP).  These hurtful politicians only remain because there is a significant segment of deceived voters who believe the lies, while they resent facts, truth, and accountability for themselves.

On January 20, 2025, Professor Ross McKitrick says it differently.

https://www.fraserinstitute.org/commentary/trump-taunts-and-trade-canadas-response-decade-out-date

Canadian federal politicians are floundering in their responses to Donald Trump’s tariff and annexation threats.  Unfortunately, they’re stuck in a 2016 mindset, still thinking Trump is a temporary aberration who should be disdained and ignored by the global community.  But a lot has changed.  Anyone wanting to understand Trump’s current priorities should spend less time looking at trade statistics and more time understanding the details of the lawfare campaigns against him.  Canadian officials who had to look up who Kash Patel is, or who don’t know why Nathan Wade’s girlfriend finds herself in legal jeopardy, will find the next four years bewildering.

Three years ago, Trump was on the ropes.  His first term had been derailed by phony accusations of Russian collusion and a Ukrainian quid pro quo.  After 2020, the Biden Justice Department and numerous Democrat prosecutors devised implausible legal theories to launch multiple criminal cases against him and people who worked in his administration.  In the summer of 2022, the FBI raided Mar-a-Lago and leaked to the press rumours of stolen nuclear codes and theft of government secrets.  After Trump announced his candidacy in 2022, he was hit by wave after wave of indictments and civil suits strategically filed in deep blue districts.  His legal bills soared while his lawyers past and present battled well-funded disbarment campaigns aimed at making it impossible for him to obtain counsel.  He was assessed hundreds of millions of dollars in civil penalties and faced life in prison if convicted.

This would have broken many men.  But when he was mug-shotted in Georgia on Aug. 24, 2023, his scowl signalled he was not giving in.  In the 11 months from that day to his fist pump in Butler, Pennsylvania, Trump managed to defeat and discredit the lawfare attacks, assemble and lead a highly effective campaign team, knock Joe Biden off the Democratic ticket, run a series of near daily (and sometimes twice daily) rallies, win over top business leaders in Silicon Valley, open up a commanding lead in the polls and not only survive an assassination attempt but turn it into an image of triumph.  On election day, he won the popular vote and carried the White House and both Houses of Congress.

It's Trump’s world now, and Canadians should understand two things about it.  First, he feels no loyalty to domestic and multilateral institutions that have governed the world for the past half century.  Most of them opposed him last time and many were actively weaponized against him.  In his mind, and in the thinking of his supporters, he didn’t just defeat the Democrats, he defeated the Republican establishment, most of Washington including the intelligence agencies, the entire corporate media, the courts, woke corporations, the United Nations and its derivatives, universities and academic authorities, and any foreign governments in league with the World Economic Forum.  And it isn’t paranoia; they all had some role in trying to bring him down.  Gaining credibility with the new Trump team will require showing how you have also fought against at least some of these groups.

Second, Trump has earned the right to govern in his own style, including saying whatever he wants.  He’s a negotiator who likes trash-talking, so get used to it and learn to decode his messages.

When Trump first threatened tariffs, he linked it to two demands: stop the fentanyl going into the United States from Canada and meet our NATO spending targets.  We should have done both long ago.  In response, Trudeau should have launched an immediate national action plan on military readiness, border security and crackdowns on fentanyl labs.  His failure to do so invited escalation.  Which, luckily, only consisted of taunts about annexation.  Rather than getting whiny and defensive, the best response (in addition to dealing with the border and defence issues) would have been to troll back by saying that Canada would fight any attempt to bring our people under the jurisdiction of the corrupt U.S. Department of Justice, and we will never form a union with a country that refuses to require every state to mandate photo I.D. to vote and has so many election problems as a result.

As to Trump’s complaints about the U.S. trade deficit with Canada, this is a made-in-Washington problem.  The U.S. currently imports $4 trillion in goods and services from the rest of the world but only sells $3 trillion back in exports.  Trump looks at that and says we’re ripping them off.  But that trillion-dollar difference shows up in the U.S. National Income and Product Accounts as the capital account balance.  The rest of the world buys that much in U.S. financial instruments each year, including treasury bills that keep Washington functioning.  The U.S. savings rate is not high enough to cover the federal government deficit and all the other domestic borrowing needs.  So, the Americans look to other countries to cover the difference.  Canada’s persistent trade surplus with the U.S. ($108 billion in 2023) partly funds that need.  Money that goes to buying financial instruments can’t be spent on goods and services.

So, the other response to the annexation taunts should be to remind Trump that all the tariffs in the world won’t shrink the trade deficit as long as Congress needs to borrow so much money each year.  Eliminate the budget deficit and the trade deficit will disappear, too.  And then there will be less money in D.C. to fund lawfare and corruption. Win-win.