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A significant number of multinational corporations within Canada are geographically centered due to American proximity and the dependency that has historically been considered a partnership.That relationship has now changed, and despite Mark Carney. saying that Canada can be stronger standing alone,there is no economic model for Canada to retain its wealth position without the inherent subsidy that proximity to America provides.
During his visit to New York, Prime MinisterMark Carneyis quoted as saying,“the world is undergoing a rupture, led by the United States.
Technological change is accelerating at a pace we have not seen in our lifetime. TheU.S. is transforming all its commercial relationships, as is its right. The world is becoming more divided and dangerous. Canada has responded quickly to these shifts by diversifying our partnerships abroad.We have to careourselves and be true to ourselves.”Given the nature of Carney’s anti-Trump political advocacy, he could say nothing else.
However, there is no independent Canada economic construct. thatcannot survive a disconnect from the United States. There isno ‘partnership’ xwithEurope and/or China, or a combination of partnerships,that can replace the one-way nature of the subsidiesfrom the U.S. economy that Canada enjoys.
If the Canadian people, workers and companies therein, have torely on their own domestic economic activity to fund their GDP, their lifestyle will have to modify in very significant ways.
One large example that will no longer work is the Canadian energy policy. No country is going to align with Canada to assemble goods for the American market if there is no way for the product to enter the United States.
If the U.S. blocks Chinese steel as a component good,then Canada has to make their own steel for whatever the product is.The same applies to every raw material that is then processed at the industrial level before it takes the form of a component part.Canada will have to extract the raw material, transition it via dirty carbon emitting industrial processes, then mold that product into the component – regardless of the finished product.The Canadian economy is no longer set up to do this at scale.
Canada extracts avast amount of raw material; but then ships that material elsewherefor industrial modification at scale (example: oil to fuel, wood to lumber, Canola oil into xxxx, etc.). Shut down the transition phase of the product due to trade agreement conflicts with the USA andCanada is left with a bunch of raw materials they then need to sell at a discount to Europe and Asia.
Previously, in almost every FTA, the EU and Asia would purchase these materials in exchange for using Canada’s proximity as a gateway to the USA market. The EU and Asia trading or selling back component goods, Canada assembling them and shipping the item into the USA.Take the United States market out of this equation and what happens to the Canadian economy and all of those previous free trade agreements with third party countries. See the problem?
Thus, within the New York Times article discussingMark Carney’s visit to New York, it ends with this:
• Lori Turnbull, a political scientist at Dalhousie University in Halifax, Nova Scotia, said that opening reflectsthe impossibility for Canada of fully or even substantially replacing the United States as a trade and economic partner.
• “Canada is going to have to find a way to deal with this, and theAmerican are still going to put on the tariffs,” Professor Turnbull said. “We’re in the weak position and they can call the shots.” (link)
The Bank of Canada is cautiously optimistic Professor Turnbull is correct. However, given the severity of the trade friction, incombination with the antagonisms of Carney, the Bank of Canada is also saying: …”.A cascading series of events could cause a sharp loss of investorconfidence and lead to a spike in demand for liquidity or rapid asset sales.”…
https://theconservativetreehouse.com/blog/2026/05/28/canadian-central-bank-warns-of-cascading-series-of-events-leading-to-spike-in-demand-for-liquidity/
Seriously Sundance has been warning for years, how stupid and arrogant Canadian leaders are to the U.S. They themselves fucked the USMCA themselves.He’s also right, the EU can’t save them, they barely can save themselvesfrom Trump and America. Carney is learning the lesson,the City of London is seemingly losing the money game to the U.S.but Carney still doesn’t understand how irrelevant he is, and how HE himself destroyed Canada’s financial future. Canadians need to wake up, otherwise they’ll flood the US for jobs.