A new, if still cautious, optimism is spreading across Canada as the country faces down the massive challenges of today’s rapidly changing global economic structure and geo-political balance – and rises up to seize the opportunities that this change presents. We are ready.
”The impediment to action advances action. What stands in the way becomes the way.” ~ Marcus Aurelius, Roman Emperor and stoic (121-180 A.D.)
stated in this space on a few different occasions recently, 2025 was a year that will evoke many descriptions, but we believe it can be best characterized by one word: uncertainty. When massive and rapid change erupts to deeply shake the long-standing world order – both politically and economically – the figurative ground shifting below us destabilizes and frightens. The presidential and federal elections in the U.S. in November 2024 set the stage for a seismic 2025, bringing in a new administration that has sought to upend much of the established world order.
quickly became a target of the new administration as they have sought to reshape the relationship between the two long-time friends, allies, and business partners. Many Canadians reacted to the U.S.’s aggressive moves with “elbows up”, with some even registering their anger and dismay at these challenges by altering purchasing decisions and travel plans.
But no matter where one stands on the issue, we have at long last put 2025 – the Year of Uncertainty – behind us.
2026: A new era begins
Phew! We made it, and actually a little less scathed than many had expected. And this is important. While some areas of our economy have been hit hard – steel, aluminum, lumber, autos – for the most part, the Canada-U.S.-Mexico trade agreement (CUSMA) held sway and protected most exports to the U.S. (RBC Economics figures around 90%) from the new and punitive tariffs imposed by the U.S. administration. And, through it all, Canada held its famous poise and cool, as we exercised our democracy in a moment of crisis and successfully elected a new Prime Minister.
With a new year upon us, it is time now for the country to turn this challenge to our economy and well-being into positive action – not against anything, but for the right things. Now is the time for us to seek to control of our own destiny, regardless of what our trading partners do or do not do. After decades of drift – falling productivity, increasing debt (both personal and government), nearly absent direct foreign investment, increasing over-regulation (no matter how well intentioned), sub-standard military spending, and declining world influence – Canada is now seizing the moment and positioning itself to be a world leader in the years and decades ahead.
Captain Canada
After his election this spring, Prime Minister Mark Carney has demonstrated untiring energy and verve as he has worked to galvanize the country and reshape our economy, both internally and internationally. From new trade deals, to establishing and/or e-establishing relationships around the world, to visits to the Oval Office in Washington, Canada’s message has been clear: we are open for business and looking for investors and constructive, long-term business partners.
these things take time – even decades, in certain cases – the effort is hopeful to bear fruit, and it encourages a new mindset for Canadian companies, entrepreneurs and citizens: seize the moment and set your course. We have our destiny in our hands – let’s make it.
Canada’s time
Fortunately, Canada is already one of the greatest countries in the world. We have a large (the 9th largest by GDP) and sophisticated economy. We are widely respected as a law-abiding, fair and respectful trading partners. We are one of the envies of the world in terms of quality of life, making almost every Top 10 “Best places to live” list. We have one of the most stable financial and banking structures in the world. We have phenomenal natural resources, not least of which is our outstanding people, and we have great industries, some world leading. And we are an open and accepting home, where new arrivals from around the world can feel welcome and safe to establish their families and their careers.
In short, we aren’t starting from a standstill – we are moving forward with strength. In the face of the changes brought by 2025, we are already finding new markets and opportunities, not least of which are amongst Canadian businesses themselves as we move to eliminate inter-provincial trade barriers.
With this renewed vigour and excitement, we will continue to evolve and strengthen our economy, giving us an even firmer footing to face the challenges that will no doubt continue to arise. It won’t always be easy, and it won’t always work our way, but we know that a great people rise up in the face of great challenges – because that’s the Canadian way.
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