Canada’s dependence on the US market has become a strategic liability, leaving it vulnerable to President Donald Trump’s bullying. Reducing that dependence will require building industries that can compete globally while removing the structural barriers that prevent innovative Canadian firms from scaling.
CAMBRIDGE—US President Donald Trump first hit Canada with substantial tariffs in 2018, targeting aluminum and steel. He did so again after returning to office in 2025, this time targeting dozens of goods, though he later exempted those compliant with the United States-Mexico-Canada Agreement. Last week, after trade talks broke down, he repeated his favorite trick, imposing 50% tariffs on a vast array of Canadian imports, including wine and mittens. Canada responded with “dollar-for-dollar” retaliatory tariffs.