Fact-based journalism that sparks the Canadian conversation

Articles Business Environment Health Politics Arts & Culture Society

Special Series Hope You’re Well For the Love of the Game Living Rooms In Other Worlds: A Space Exploration Terra Cognita More special series >

For the Love of the Game

In Other Worlds: A Space Exploration

More special series >

Events The Walrus Talks The Walrus Video Room The Walrus Leadership Roundtables The Walrus Leadership Forums Article Club

The Walrus Video Room

The Walrus Leadership Roundtables

The Walrus Leadership Forums

Subscribe Renew your subscription Change your address Magazine Issues Newsletters Podcasts

Renew your subscription

The Walrus Lab Hire The Walrus Lab Amazon First Novel Award

Amazon First Novel Award

Trump Is Going His Own Way on Trade. Carney Should Let Him

Canada’s future lies with countries that still want to buy and sell

At the approach of midnight, on August 21, 2026, Canada walked out on talks with the United States to avert new tariffs due to kick in on some $20 billion (US) worth of US imports from Canada. These tariffs were nominally in retaliation for Canada’s retaliation on US retaliation against alleged unfair trade practices.

However, the timing of the US tariff action says something beyond the specifics of the alleged grievances (or extortion) demands: the tariff talks with Canada were timed to conclude just before sweeping tariffs on US imports from around the world enter into force. This move has been interpreted as an attempt to pressure Canada—the most trade-exposed country to the US—to bend the knee and to set an example for others that resistance is futile.

By walking out, Canada set a different kind of example. Washington was effectively asking Canada to sign up for collective war on the global economy—to match US tariff levels on key products against all trading partners outside North America.

Canada refused. The rest of the world should follow suit.

Canada has been at trade war for some time, and we have had a lot of time to work out the optimal response. This strategy is rolled up in what might be called “The Carney Doctrine,” which may be summarized as doubling down on open trade and expanding Canada’s international partnerships, falling back on Canada’s own resources to develop domestic capabilities, and managing the US relationship from a position of strength without bending the knee.

This amounts to doing what is best for Canada. And that is, thankfully, straightforward—but none of it entails going to “trade war.” In trade, every piece of trade policy ordnance deployed against the opponent (actually, in this case, against the trade partner—think about that because the Donald Trump administration obviously hasn’t) has an equivalent damaging effect on the country deploying the measure.

That means that Canada should be prepared to sell to the US what it wants to buy from us—US tariffs on our products or no US tariffs. There is no point to imposing export taxes to harm the US economy. Canada does not do better if the US does worse (memo to the Trump administration: the US does not do better if Canada does worse, notwithstanding what certain influential thinkers in the administration seem to think—if the US agrees with them, it hasn’t done the trade math).

Canada should also........

© The Walrus