MacDONALD: Donald Trump isn’t cramping Canada’s economy, he’s exposing it

Mark MacDonald is a BC-based writer and columnistJustin Trudeau has been successful in spreading division from coast to coast on multiple issues throughout his nine years as prime minister, but his latest venture has been attempting to unite Canadians under one theme: Hate Donald Trump. It’s a classic feint, directing people to look ‘over there’ where they won’t see the problems staring them right in the face. Despite Trudeau trying to cloak himself in the Canadian flag and rally this country around hatred for Trump and disdain for anything American, it is thin gruel indeed. For it is Trudeau, and those who have kept him in power — specifically Jagmit Singh and the NDP — that have left Canada in a position of unprecedented economic weakness. Having a drama teacher loathed from coast to coast trying to negotiate anything with the author of “The Art Of The Deal” is a mismatch of epic proportions. Trump is Goliath. Trudeau is not David, and has no stones, either. Trump is a businessman, and he must be licking his chops, negotiating publicly with Canadian politicians who are incapable of matching wits and strategy with a hardened capitalist, and are notoriously inept at bargaining with business people. Not only that, but the federal Liberals are not just wrestling with Trump, they are bargaining with Canadian voters who will vote this year. This being the case, the unpopular, likely short-term governing party is not necessarily pursuing what is best for Canada. They’re making deals for what they think voters want now, which might not be best at all. Canada’s perilous position is entirely its own doing. Its economic malaise and unpreparedness for a powerful American presidents’ threat of tariffs has shocked our system and started emergency conversations that should have taken place in the last decade, namely about opening other markets for our natural resources — and the banishment of self-sabotaging inter-provincial trade barriers. Trudeau’s gravest economic injustice has been his attempt to stop climate change by increasing the price of gas, while slowing resource extraction and industrial growth to a crawl as he pursued his green ideology with religious fervour. Germany and Japan both came, cap in hand, begging for Canadian natural gas. Trudeau, claiming there was “no business case” for it, turned them away. Trump recently secured a major deal for the U.S. to supply Japan with natural gas. That contract could have — and should have — been ours. If Canada had been a proper steward of its resources and allowed pipelines to get oil and natural gas to access European and Asian markets, it would only have to shrug its collective shoulders if the U.S. decided to impose tariffs at any level. As in: “Go ahead. We have other markets, who will purchase resources at prices that make sense for us, without a discount.” Love him or hate him, Trump has been good for this country in that he has shocked this nation and awoken it to its dire economic circumstances, and the perils of Canada’s tradition of taking the easy way to serve one, close customer — and failing to pursue others. Competition is the hallmark of capitalism, and it’s what helps keep business, and politicians paying attention. If Trump’s demolition of federal government largesse is successful, Canada will be forced to follow suit to some degree. Here’s what appears to be Trump’s plan to jump start the U.S. economy: 1. Identify wasteful government spending and eliminate it through Elon Musk’s Department of Government Efficiency (DOGE). Governments don’t create wealth, they spend what they get through taxation and fees, so if Musk is successful in his pursuits, it will result in billions, if not trillions, fewer tax dollars siphoned by the government. 2. Tariffs. Charging outside countries to sell their wares in the U.S. is a strategy that Trump has apparently borrowed from their 25th President William McKinley. Companies can continue to have tariff-free access to the lucrative U.S. market if they choose to set up shop in America, thus creating jobs. For those who claim the tariffs will cause inflation and raise the cost of goods, Americans will have more dispensable income due to having more lucrative jobs, which they historically spend, because of. . . 3. Dramatic income tax cuts. Trump has hinted about this, and nothing will stimulate the economy more than allowing Americans to keep more of what they earn. They’ll have more money in their pockets by paying less tax, which makes sense because government operations will be less and more efficient. A population that isn’t facing coughing up to half of its income on paying for government programs it doesn’t want or need will be enabled to choose what they want to spend their hard earned money on. Americans typically aren’t savers like Canadians, so that money will be market-bound and will stimulate the real economy, the private sector. Remember when Gordon Campbell became premier of B.C. in 2001 after 10 years of NDP rule and economic stagnation? Campbell’s shocking, instant announcement of a 25 percent cut in personal income tax jolted the marketplace and led to a decade of economic growth and prosperity. Trump’s tariff threats have exposed Canada’s economic weakness. If his plans work, he could be one of the best things to ever happen to Canada, because we’ll be forced to follow suit to stay competitive, or close. Mark MacDonald is a BC-based writer and columnist. mark@businessexaminer.ca

MacDONALD: Donald Trump isn’t cramping Canada’s economy, he’s exposing it

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