Carney Removes Retaliatory Tariffs
Should the Buy Canada Movement also Take a Step Back?
Posted: Aug 27, 2025
This week, Carney announced that Canada would lift many retaliatory tariffs on U.S. goods. This followed a phone call with Trump, the contents of which remain pretty tight-lipped.
For some, this decision probably feels like something of a retreat; like a lowering of our elbows in the face of American pressure. And, truthfully, to some extent, it probably is.
But let's face it: the U.S. economy is 10x the size of Canada's. And due to a combination of geographic convenience, longstanding policy, and habits ingrained across decades, over 70% of Canada's exports go directly to the U.S. While it could be argued that this has worked in our economic favour for the last few decades, any student of economics (or anyone who manages their own personal investment portfolio) knows that a lack of diversification breeds vulnerabilities. And while previous U.S. Presidents have not tended to leverage those vulnerabilities; unfortunately, this U.S. President is leaning in hard.
That isn't intended to let Carney completely off the hook – he made some pretty strong promises during his shortened election campaign, and some may argue that by removing the retaliatory tariffs he's directly assaulting those campaign promises. But we would also do well to appreciate that Carney came in to a deck of cards that wasn't necessarily holding all aces.
Should Canadians – households, businesses, and institutions – also be lowering their elbows? Should we, too, begin easing off the pedal, accepting a more passive posture re protecting our economy?
Our answer is unequivocally: no.
Sure, it would be nice to see our government hold a hard line and keep their dukes up in the face of Trump's pressure. But the fact remains that international negotiations aren’t just about courage and desire; they’re also about leverage and power – and whether we like it or not, at the macro/governmental level the U.S. likely holds the more powerful cards.
And this is why, in our opinion, the actions of everyday Canadians matter now more than ever. Because while Carney may need to posture with strategic diplomacy, we do not. Because even if Carney needs to negotiate with orange bullies, we are free to make our own choices, to award our hard earned dollars to domestic companies that will help keep our currency cycling through our own country. And because the actions of everyday Canadians can indeed make a difference! They're strengthening our economy from the ground up. They're preventing our hard-earned dollars from seeping out of the country. They're supporting Canadian manufacturing and Canadian small business.
What determines a country’s strength at the negotiating table is the underlying vitality, depth, and resilience of its domestic economy. And that, increasingly, is shaped not just by government policy, but by the choices made by all of us. Every decision to purchase, source, or invest in Canadian-made or Canadian-owned goods and services, whether at the household, business, or institutional level, contributes directly to the strength of that foundation. Each time money is kept circulating within the Canadian economy, it reinforces our market, deepens supply chains. And this, in turn, will not only support home-grown Canadian businesses, it will also gradually increase the leverage that Ottawa can bring to its next negotiation.
So, now is not the time to let down our guard – our elbows, so to speak. Of course we'd like to see our leaders show greater strength at the table. But the real work of building that strength can start far from Parliament Hill. It can be embedded in daily decisions made in homes, businesses, and boardrooms across the country.
Liked this blog?
We are stronger together!
🤝 The strength of the Buy Canadian movement is in our collective purchasing power. So please share this blog with someone else who you feel would appreciate the message.
A few other posts you may be interested in: