Thanks to decades of concerted action by Canadian businesses and governments—often working in opposition to workers and the broader public interest—the Canadian economy is now deeply integrated with our southern neighbours. That integration, once sold on the promise of a stable, mutually-beneficial partnership, is proving to be a massive liability as the United States descends into autarky and outright fascism.
American hostility is not new, and it has spurred nation-building projects in Canada before. The Rideau Canal was built not for skating and summer boat tours, after all, but as a conduit safe from U.S. attacks on the St. Lawrence River. Similarly, the Canadian Pacific Railway was motivated not merely by economic concerns but to assert Canada’s sovereignty against America’s westward expansion.
Asserting that sovereignty once again is a critical task—and potentially an existential one.
It is also a challenge that cannot be met using the same laissez-faire approaches that got us into this mess. Canada-U.S. integration is, after all, the product of a half-century of free trade, deregulation and privatization. By giving capital free rein, unhindered by borders and emboldened by the erosion of taxation and regulatory regimes, governments have facilitated the concentration of economic power into the hands of multinational corporations with no loyalty to Canada or concern for the public interest.
Yet the big ideas currently being floated by Canadian politicians and business lobbyists would do more of the same. Calls to lower corporate taxes even further, build new oil pipelines on the public dime and eliminate interprovincial trade barriers are at best misguided and at worst counterproductive. Rather than set the Canadian economy on a path of resilience, sovereignty and sustainability, these initiatives would merely entrench the profitability of the corporate sector—including for U.S. investors and owners of Canadian assets—with no guarantee of public benefit.
We need better ideas for addressing the present crisis. Ideas that break from a failing model and actually build a stronger, more independent Canada. Here are 10 such possibilities.
Build an all-Canadian electric transportation industry. The Canadian auto industry is more intertwined with the U.S. than perhaps any other sector and therefore deeply vulnerable to the Trump tariff threat. Moreover, while Canadian plants are involved in various stages of parts manufacturing and assembly, few vehicles are actually designed here by Canadian companies. The alternative? A new, all-Canadian electric vehicle that is designed, manufactured and sold domestically. The Canadian auto sector has the capacity and expertise to pull it off, as demonstrated by Project Arrow, a concept EV revealed in 2023. And we need not stop at cars—Canada could be building its own electric buses, trains, bikes and scooters, too. An electric mobility industry is a compelling candidate for a publicly-led project of national significance.
Build an east-west electricity grid. Canada needs to double or even triple electricity generating capacity in the coming decades to meet the needs of a decarbonizing economy. Much of that new capacity will come from intermittent renewables, such as wind and solar, that are now the cheapest sources of new power on the market. A smart, interconnected grid will allow regional systems to back each other up by transmitting surplus power to the places that need it, making electricity even cheaper and more reliable for everyone across the country. Unlike a pipeline, an east-west grid need not be continuous from coast-to-coast, but rather strategically link up specific provinces, such as Québec and its neighbours through the proposed Atlantic Loop. It’s a no-brainer both from a climate perspective and for reducing our dependence on the U.S. fossil fuel trade.
Unleash Indigenous-owned renewable energy projects. Indigenous communities and businesses are disproportionately driving clean energy development in Canada. Already, a fifth of renewable energy projects in the country have Indigenous owners or partners. These projects are helping both to decarbonize and decolonize the energy system while creating lasting economic benefits for Indigenous communities. Yet they are often doing so with limited resources or government cooperation. A financial and regulatory commitment to supporting Indigenous-owned projects could open up many more opportunities, which is all the more important given Indigenous rights and title over so much of the land that is well-suited for renewables development.
Build a publicly-owned, coast-to-coast high-speed rail system. The recent announcement of Alto, a high-speed rail line between Toronto and Québec City, is as exciting as it is overdue. Canada’s most populated corridor absolutely needs dedicated transit infrastructure that can displace a meaningful share of both long-haul drives and short-haul flights. However, the federal government’s insistence on using a public-private partnership model that has repeatedly failed to deliver affordable, reliable transit systems in Canada is worrying. Moreover, high-speed rail should be available from coast-to-coast, even if it is not as profitable in other parts of the country. Making the project public, through Via Rail or otherwise, would allow it to put the public interest over profit—the hallmark of a true nation-building project.
Build one million non-market homes. The housing crisis is a crushing preoccupation for far too many workers and families in Canada. It is also a huge economic drag, as high rents and house prices restrict labour mobility and discretionary spending. But getting new homes built is only half the battle. They must also be affordable and sustainable, which means a much greater role for transit-linked, low-carbon, non-market housing. The federal government used to be in the business of building quality affordable homes. It’s time to get back in the game, with a target of one million new non-market and co-op housing units over the next decade.
Launch a public bank for the public good. A fossil-fueled private banking sector is an obstacle to meaningful economic diversification in Canada. While public alternatives such as the Business Development Bank of Canada and Export Development Canada exist, they primarily serve the private sector. A public development bank explicitly focused on providing low-cost financing and financial services to communities and non-profits could kickstart ambitious economic diversification efforts across the country—including many of the ideas outlined above. A well-capitalized public bank would do far more for local economic development than the elimination of public interest regulations misconstrued as trade barriers. A public consumer-facing bank could bring similar benefits directly to households.
Build a flourishing Canadian arts and culture industry. Reinforcing the idea of Canada isn’t just about building physical things. It’s about building shared identity. At a time when Canadian culture is often drowned out by American content proliferating on American social media and streaming networks, we need to make a more concerted effort to support homegrown alternatives. Massive public investments in culture will give talented artists the security and motivation to create great works in and about Canada. Renewed support for public broadcasters, cultural venues and digital platforms will ensure the infrastructure is in place to support and promote those creators. Cultural touchstones are the intangibles of nation-building and government support is more important here than ever.
Plan a world exhibition to rally Canada and its allies. Expo 67 is an enduring cultural milestone for Canada. Hosted in Montréal to celebrate Canada’s centenary, the 6-month-long event attracted 50 million visitors from around the world and it left the city with a rich legacy of public infrastructure. As the relationship with our closest ally crumbles before our eyes, another Expo is in order. It should be a platform for our renewed arts and culture industry and a reminder, to Canadians and the world, that Canada is worth fighting for.
Establish a youth climate corps. Building a more independent and sustainable economy will require a lot of work. Indeed, every initiative described above would create a huge demand for workers. At the same time, many young people across the country are desperate for opportunities to contribute to their communities in a meaningful way. A federal program that guaranteed a well-paid, unionized job to any young person who wanted one could mobilize a powerful and motivated workforce to make big projects possible. A youth climate corps is a popular idea, and, in 2024, the federal government committed to pursuing it. Making it happen at a sufficient scale will require a major financial and administrative commitment, but the economic and cultural payoff will be felt for a generation.
This list is hardly exhaustive. There is no shortage of good ideas for disentangling Canada from the U.S. and investing in more resilient alternatives. They should all be on the table as Canada embarks on a radical economic transition.
What all of these ideas have in common, however, is a foundational belief in and commitment to the public interest. They describe an economy that puts public control ahead of U.S. dependence; one that puts well-being, resilience and sustainability above private profits.
And, almost as important, they are nation-building projects—ideas that can strengthen the social, economic and cultural fabric of Canada in the face of an increasingly belligerent neighbour.
