Today, Canada awoke to the shocking news that the United States, its biggest trading partner and so-called friend, was applying 25% tariffs to its entire array of exports into the country. Warren Buffet called it “an act of war.”
Friendly neighbors might make good barbecue companions—at least they do in Canada—but relying on them to safeguard the country’s economy now seems to be a somewhat inferior strategy.
Canada’s longstanding comfort in this 49th parallel relationship exposes a serious vulnerability we might call “economic complacency.” The solution is straightforward, and it might even have come from Canadian comedic legend Mike Myers during his appearance this past weekend on Saturday Night Live.
Canada needs an assertive “Elbows Up” leadership strategy.
This means confidently taking ownership of its economic destiny. No more Canadian apologies. It’s time to sharpen the elbows. Make Gordie Howe proud. Wayne Gretzky certainly doesn’t seem to care.
An Elbows Up approach includes four clear, bold actions: expanding domestic manufacturing, diversifying trade partnerships, empowering entrepreneurs, and branding Canada more ambitiously on the world stage.
Manufacture More at Home
Relying heavily on external supply chains means Canada remains vulnerable to sudden economic jolts. Like 25% tariffs. Domestic manufacturing must become a priority, not an afterthought.
Stellantis and LG Energy Solution recently broke ground on a multi-billion-dollar EV battery plant in Windsor, Ontario. Moves like this insulate Canadian businesses from sudden disruptions caused by tariffs. Producing critical goods locally is a strategic risk management act. Canada needs more shovels in the ground.
Vancouver’s robotics sector is proving AI’s promise is not hype. According to RBC, Canadian factories that integrated AI-powered robotics increased efficiency by 15% within one year. Canada should immediately scale these technologies nationwide. Automation creates economic resilience by reducing dependence on vulnerable global labor markets.
Canada’s Digital Supercluster program, which links startups, academia, and large companies, is powerful but woefully underutilized. Singapore’s “Smart Nation” initiative exemplifies what’s possible when a country rallies around a digital strategy. Canada should aggressively expand the Supercluster program to ensure rapid deployment of homegrown technology solutions across industries.
Critical industries like pharmaceuticals, semiconductors, and renewable energy should be brought back to Canadian soil. It is time to reshore. According to the C.D. Howe Institute, if Canada were to reshore these sectors, it would significantly reduce economic vulnerability. Domestic production equals economic sovereignty, which tariffs cannot undermine.
Diversify Trade Beyond the U.S.
The United States will always be important to Canada, but counting exclusively on one trading partner is risky business. Canada’s trade strategy must become global, given that 76% of its total exports are U.S.-bound.
Canada’s trade deals, including CETA and CPTPP, offer access to Europe and Asia’s booming markets but are woefully underused. Mexico is swiftly becoming an automotive powerhouse, overtaking Japan in vehicle exports, so it’s in Canada’s best interest to rapidly build stronger partnerships here. A robust Mexico-Canada alliance protects both economies from the whims of U.S. policy changes.
It’s great to vacation in Mexico, but that can’t be the only reason to partner.
Many Canadian companies hesitate when expanding internationally because adequate resources and supports are not readily available. Saskatchewan’s agri-software startups recently entered European markets successfully due to targeted grants from its provincial government. Scaling such focused support nationally would dramatically increase Canada’s global footprint.
Unleash Canadian Entrepreneurs
Small businesses drive 63% of Canadian employment—while 98% of all businesses are small businesses—yet excessive regulation and fragmented incentives hold Canadian entrepreneurs back. It’s time Canada removed those hurdles. Jim Balsillie has been on about this for years.
According to the Business Development Bank of Canada (BDC), recent pilots in Ontario and BC streamlined business registrations, cutting approval times by 30%. Immediate nationwide implementation of such progress is essential. Less bureaucracy means more innovation which means more entrepreneurs which means more jobs.
Additional federal incentives in research, manufacturing automation, and exports have seen only moderate success. If the country wants to inculcate an entrepreneurial mindset, it needs to think about federal and provincial incentives that are harmonized, not disparate. These incentives can increase (and create) collaboration between provinces and cities.
Be Louder About Canadian Success
Canada’s humility on the global stage is charming but economically damaging. Quiet confidence is not a strategy during economic warfare. It’s not a strategy outside of it either. Canada must clearly and boldly broadcast its achievements. After all, Canada invented insulin, Trivial Pursuit, and IMAX.
Canadian breakthroughs, from Montreal’s hospital resource allocation AI to the aforementioned robotics innovations in Vancouver, should be promoted aggressively worldwide. There are plenty more examples, too. If Canada doesn’t brag a little, others will remain unaware of its true value. Modesty and charm have no place when economic resilience is at stake.
Canadian entrepreneurs and innovators must be showcased publicly and often. Alberta’s clean-energy startup pivoting successfully to Europe after U.S. market challenges is one such example.
When the country can showcase stories such as these, it can garner global respect and recognition, a crucial aspect during times of economic uncertainty.
Elbows Up and Out
The recent U.S. tariff farce is a sharp reminder that passive economic leadership leaves Canada dangerously exposed.
An “Elbows Up” approach—grounded in assertive domestic manufacturing, diversified trade, empowered entrepreneurship, and bold branding—positions Canada for stability and growth regardless of external turbulence.
Elbows Up leadership is proactive, assertive, and pragmatic. It’s about stepping forward confidently rather than being pushed around quietly. Canada has all the talent, resources, and innovative capacity it needs. All it lacks is urgency.
Now’s the time for Canada to stop apologizing and start asserting. While Canada has historically supported the U.S., it may need to reconsider its actions in the future.
Elbows Up, Canada—your economic future depends on it.