An 1891 editorial cartoon from New York’s Puck magazine shows a young Canada being pulled inexorably toward Uncle Sam by the joint forces of business and common interests. The caption reads: “It’s only a question of time.” Illustration by Joseph Keppler.

Diversifying Canada’s economic strategy is essential in an era of tariff escalation and growing geopolitical volatility. Stellantis’s recent announcement that it’s heading south sent another Arctic chill to concerns over Canada’s industrial future. Billions in public subsidies are flowing to foreign multinational automakers, yet questions remain: Who benefits? What regions are being prioritized? And what kind of innovation are we actually funding?

Last week Stellantis, formerly Chrysler, confirmed it would shift planned Jeep Compass production from its Brampton, Ontario plant to Illinois, part of a $13 billion expansion south of the border. The move has been widely viewed as a response to escalating tariffs and direct pressure from Washington. Doug Ford called for “economic retaliation” against the US, blaming Donald Trump’s protectionist push for undermining Canadian jobs.

With 3,000 Brampton workers already laid off and fear rippling through Ontario’s auto belt, the episode underscores how vulnerable Canada’s industrial future remains to American leverage, and how little control Ottawa retains despite billions in public subsidies.

In the face of the inexorable pull of American interests and power, the federal government still continues to seek ways to sweeten Stellantis’s pot to keep them in our backyard. However, more long-term policy concerns need to be addressed. This moment demands more than reactive pursuit of foreign investors—it calls for a proactive, public-led strategy that serves national development, regional equity, and visionary innovation.

The latter part of the 19th century was marked by two major pressures on Canada’s young struggling, but resource-rich, economy: the first era of massive economic globalization coupled with intense American protectionism. Facing the challenge of massive US tariffs, the resolute response of one Canadian MP stands out. In an 1891 speech delivered to an American audience, former cabinet minister Joseph-Adolphe Chapleau stated that that American tariff policies have “done us good” causing us “to realize that we stand upon our own feet” rather than leaning for support upon the United States.

The federal government under John A. Macdonald introduced a National Policy committed to building the Canadian economy and strengthening its east-west connections. The policy was a mixed blessing. One study of this period demonstrates that Canada’s trade policies were a calculated strategy that did have some benefits in boosting domestic manufacturing, GNP, and employment. On the negative side, though, tariff policies designed to promote domestic economies tended to be selectively applied in supporting industries in politically influential regions, particularly in urban centres in Ontario and Québec. While the National Strategy did help to shape Canada’s industrial geography and foster national economic development it also fed regional disparities and........

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