To many, American tariffs represent an undeniable threat to the Canadian economy. However, Canadian CEOs and lobbyists have come to see the new trade policy as an opportunity. Under the guise of promoting growth in an economy falling ever further behind its wealthy peers, companies are advocating for tax breaks and deeper military funding. Doing so would harm social welfare policies in a feeble attempt to assuage the Trump administration’s complaints. While there is perhaps some merit behind their claims surrounding economic development, it is clear that these companies have only one end in mind: Ensuring their own growth. 

The first change that Canadian CEOs are advocating for—tax breaks on large companies—stems from the argument that the Canadian economy needs a new infusion of growth and innovation. The Business Council of Canada, an advocacy group consisting of CEOs from the nation’s largest companies, compares Canada to nations like South Korea, Finland, or Singapore. Though they once struggled under weak economies, these countries now enjoy flourishing innovation and general quality of life. The sentiment echoes through the group’s advocacy: Canada could achieve the same. Canada, as a medium-sized economy, relies primarily on material exports, including petroleum and manufactured goods, with the United States receiving over 70 per cent of these exports. The Business Council of Canada further notes that in the realm of technology exports, Canada lags well behind other developed nations, including the U.S., U.K., France, and Germany. Thus, these CEOs see the tariffs as an opportunity for Canada to stand up straight and stop leaning on its southern neighbour. Through investment into technology and innovation, primarily in the green energy industries in which Canada could muster a comparative advantage, the nation’s steady economic stagnation could turn into newfound growth. 

This proposal comes back to an argument for tax cuts on large companies and government investment into relevant sectors. As the CEOs see things, tax cuts are necessary for their corporate growth. However, the subsequently decreased federal budget, alongside investments into a developing sector, would require funding cuts to social welfare programs. When the price of prevalent American imports is bound to increase, and the Canadian dollar to depreciate, further burdening the Canadian citizen with the costs of vital services creates an exacting strain. While economic growth may see some of these difficulties reversed, that is only if the proposed Canadian green energy economy successfully competes on the international market, and this corporate success flows down to the broader population. In regards to corporations that claim to have national interests at heart, both are far from guaranteed. Government investment into a green energy sector could indeed be fruitful in shaping a new Canadian economy. However, defunding social welfare is far from the best means to do so.

Canadian CEOs are also proposing a second agenda to their government: Increasing military spending. Their interest here is not to any greater goal of Canadian prosperity; instead, they seemingly aim to once again ingratiate Canadians with the American government. Increasing the military budget beyond the NATO quota of 2 per cent of the GDP would please the Trump administration and European peers. Indeed, Trump has shown himself to be a transactional man, pleased by shows of deference. However, to assume that kneeling to his whim will somehow put Canada back in good favour with his government is simply naïve. The U.S. president has shown with previous tariff deals that any concessions made will only delay, and not prevent, inevitable American protectionism. Further, with Canada safely cocooned between two oceans and an established military ally to the south, the need for high military spending is fairly low. Increasing this budget would simply be wasteful. 

Neither rerouting money from social welfare nor tax cuts on large companies will help Canadian CEOs achieve their ends. Proposals for the government to invest in the green energy sector could indeed stimulate economic growth and make up for lost exports, but enacting such a plan off of defunded welfare would be misguided. Simultaneously increasing the military budget would only make funding scarcer for no particular end. If Canadian CEOs want to see economic change, they are going to have to find a means to do so that doesn’t place the burden on the Canadian citizen.