Share this Story : Financial Post Copy Link Email X Reddit Pinterest LinkedIn Tumblr

Terence Corcoran: Canada hates Trump but loves his economics

The Canadian economic strategy approach reflects Trump’s economic belief that the state is the road to economic salvation

You can save this article by registering for free here. Or sign-in if you have an account.

Amid all the talk and speculation about the global economic impact of U.S. President Donald Trump’s looming World War III, it is hard to avoid noticing the corresponding embrace of another side of the Trump agenda, expansion of government involvement in the economy. Enthusiasm for state-run economic policy has swept Canada.

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.

Daily content from Financial Times, the world's leading global business publication.

Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.

National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.

Daily puzzles, including the New York Times Crossword.

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.

Daily content from Financial Times, the world's leading global business publication.

Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.

National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.

Daily puzzles, including the New York Times Crossword.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.

Share your thoughts and join the conversation in the comments.

Enjoy additional articles per month.

Get email updates from your favourite authors.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account

Share your thoughts and join the conversation in the comments

Enjoy additional articles per month

Get email updates from your favourite authors

Sign In or Create an Account

Long before President Trump launched his international regime change initiatives in Venezuela, Cuba and Iran, the Canadian policy establishment was already gearing up for a sweeping government-directed reform of the nation’s economic structures. Soon after Trump announced his trade war against Canada and Mexico in early 2025, the new Mark Carney Liberal government, along with labour and and business organizations, turned to government directed economic planning as the only viable alternative.

A model for interventionist planning was outlined last September by the Institute for Research on Public Policy (IRPP). As Trump fuelled economic turmoil, the IRPP urged Ottawa and the provinces to move aggressively forward with their own plans. “It is hard to see a path forward for the Canadian economy that does not include governments making big investments to address important challenges and capture new opportunities.”

Now that Carney is back in Canada — witness his jolly appearance at the Junos to present the lifetime achievement award to Joni Mitchell — we seem to be heading deeper into a nationalist pursuit of state-directed industrial policy.

In Toronto on Monday, Carney joined Premier Doug Ford and the mayor of Toronto for a high-profile announcement that Ottawa and the province will provide $10.2-billion to subsidize housing development in the province. Carney said the monies (which are in fact cash transfers to cities to offset their tax losses) would cut the price of a new home by up to $200,000. He also promised billions more to build Toronto public transit and the Quebec-Toronto high-speed train.

Get the latest headlines, breaking news and columns.

There was an error, please provide a valid email address.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

A welcome email is on its way. If you don't see it, please check your junk folder.

The next issue of Top Stories will soon be in your inbox.

We encountered an issue signing you up. Please try again

Interested in more newsletters? Browse here.

Carney has also been working with Alberta Premier Danielle Smith on a promised agreement to impose carbon “pricing” (known to the rest of us as a carbon tax) on industry. Smith told the Calgary Herald that a deal could be signed within days, although there was no agreement yet on other plans to sink billions into carbon capture and storage projects.

The carbon tax and storage deal being sold as part of a major industrial strategy. As described by Carney’s office, the objective is “to foster the conditions necessary for infrastructure, including pipelines, rail, power generation, a strong and integrated transmission grid, ports and other means that will unlock and grow natural resource production and transportation in Western Canada. As a result, Canada will be able to reach its international export goals and develop new technologies including Artificial Intelligence (AI), and, through innovation and intergovernmental cooperation, be a source of clean energy to lower global greenhouse gas (GHG) emissions.”

Then there’s the defence industrial strategy under which Ottawa will rebuild Canada’s military capacity, but only if it “maximizes growth, job creation and economic benefits for all Canadians.” But do such benefits exist? Economists warn that the economic gains from defence spending are doubtful, as do military strategists. Roy Rempel, defence advisor to former Prime Minister Stephen Harper, warned in a commentary this week that pursuing a defence industrial strategy would require a comprehensive and detailed plan, something the Carney government has not yet done.

Terence Corcoran: Ottawa’s competition ‘hawks’ swooping in on Rogers — again

Terence Corcoran: Ontario's free market for online gambling, but not for ticket resales

Advertisement 1Story continues belowThis advertisement has not loaded yet, but your article continues below.document.addEventListener(`DOMContentLoaded`,function(){let template=document.getElementById(`oop-ad-template`);if(template&&!template.dataset.adInjected){let clone=template.content.cloneNode(!0);template.replaceWith(clone),template.parentElement&&(template.parentElement.dataset.adInjected=`true`)}});

Nor has much been done around government plans to refocus the Canadian auto industry away from the United States. Carney’s Finance Minister François-Philippe Champagne is in China this week to work on enhancing trade links and securing Chinese investment in Canada to offset an impending decline in trade and investment relations with the United States.

As with defence and other industrial areas, Ottawa has not come up with a coherent auto strategy, aside from vague notions that would allow China to either export electric vehicles into Canada and/or or set up a manufacturing plant in Canada.

Suncor reveals expansion plans as key oilsands mine enters its last decade Energy

Suncor reveals expansion plans as key oilsands mine enters its last decade

Chinese cars can’t cross from Canada to U.S., Trump’s envoy says Autos

Chinese cars can’t cross from Canada to U.S., Trump’s envoy says

Advertisement 2Story continues belowThis advertisement has not loaded yet, but your article continues below.document.addEventListener(`DOMContentLoaded`,function(){let template=document.getElementById(`oop-ad-template`);if(template&&!template.dataset.adInjected){let clone=template.content.cloneNode(!0);template.replaceWith(clone),template.parentElement&&(template.parentElement.dataset.adInjected=`true`)}});

Snowbirds moving back home drives high demand for cottage properties Real Estate

Snowbirds moving back home drives high demand for cottage properties

Old Age Security reform is a good idea; arbitrary clawbacks are not Personal Finance

Old Age Security reform is a good idea; arbitrary clawbacks are not

Canada's economy is on a 'rollercoaster' that the Bank of Canada will have to ride, economists say Economy

Canada's economy is on a 'rollercoaster' that the Bank of Canada will have to ride, economists say

While the specifics are different and even contradictory, the Canadian economic strategy approach reflects Trump’s economic belief that the state, through major trade interventions, nationalist corporate policies backed by government spending and record debt accumulation, is the road to economic salvation.

Canada and the world are being sucked into the Trump economic model, including his belief in the benefits of rising government deficits and debt. Ontario let week announced a 2026-7 budget deficit of $13.8 billion, topping British Columbia’s $12-billion and Alberta’s $9-billion. All together Ottawa and the provinces are set to incur more than $100-billion in new debt this year alone .

The purpose of the big spending is to facilitate industrial strategies. Ontario’s budget last week said the objective is to take action “by unleashing the province’s full economic potential. It is driving new growth by creating jobs for workers and opportunities for businesses, supporting strategic investments and encouraging innovation in key sectors as part of an ambitious plan to make Ontario the most competitive place to invest, grow and succeed in the G7… to build a more self-reliant economy, protect jobs, support workers and secure Ontario’s future as an energy superpower.”

Premier Doug Ford sees himself as the CEO of Ontario Inc, just as Carney sits as CEO of Canada Inc. Everybody hates Trump, but they love his approach to economic strategies.

• Email: tcorcoran@postmedia.com

Share this Story : Financial Post Copy Link Email X Reddit Pinterest LinkedIn Tumblr

Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

© Financial Post