
We all know what happened this week:
Donald Trump’s decision on April 2 2025 to enact sweeping “reciprocal” tariffs on US trade partners will go down as one of the greatest acts of self-harm in American economic history. They will wreak untold damage on households, businesses and financial markets across the world, upending a global economic order that America benefited from and helped to create.
We also know it was based on highly questionable math:
His “reciprocal” levies amount to a back-of-the-envelope calculation. They take trade partners’ US trade deficit in goods as a share of imports from that country, and then divide it by two. This is not a calibrated attempt to equalise tariff and non-tariff barriers facing US exporters, perceived or otherwise. It is, however, a reckless repudiation of all trade agreements the US has signed, as well as a deeply flawed plan to attract foreign manufacturing investment.
So what happens next?
Assuming this behavior persists, the US will continue to isolate itself from global trade, and the rest of the world will pivot and quickly move to trade more freely among themselves. This maybe isn't as problematic as some might think. Today, the US represents about 13.5% of global goods imports, which is down from almost 20% in 2000. And the biggest drivers of global growth are now China and the Euro area.
To that end, here's a fascinating study from IMD Business School that looked at how long it will take for various trading partners to completely wean themselves off of the US. And to do this, they looked at non-US import growth for the 10-year period from 2012 to 2022, and then extrapolated. This is what they learned:

What this chart says is that by the end of this year, some 70 US trading partners could, in theory, replace the loss of the US export market so long as non-US growth continues as it did in the past. And by 2039, the number jumps to over 140 trading parties. 2039 is obviously a long ways away, but I think it's noteworthy that year one in this specific chart already starts with 70.
Importantly, Canada does not fall within this initial bucket. Based on the study, we are in the danger zone. That is, exports to the US make up more than 10% of our GDP and it will take more than 10 years for full export recovery. But again, this is based on historic non-US growth. So all this means is that the status quo cannot continue; we need to dramatically increase this growth rate and do it as quickly as possible.
I hope our leaders recognize the urgency of this, because nothing can be taken for granted when it comes to the US right now. We need to be hyper focused on full trade recovery as soon as possible. Canada needs to be open for business to the world.

The silver lining to the US starting a trade war with Canada and regularly threatening annexation is that it has forced this country out of complacency. Indeed, I'm hard pressed to think of a time, at least in my lifetime, when patriotism and nationalism has united so much of Canada.
According to a recent survey by Angus Reid, the percentage of Canadians expressing a "deep emotional attachment" to the country jumped from 49% in December 2024 to 59% in February 2025. And as further evidence of just how unifying this moment in time is, the province with the biggest increase in attachment to country was Québec.
What it means to be a Canadian is sometimes lazily defined according to who or what we are not. But this precarious moment in time is seemingly reminding us who we are. Of course, it also begs the questions: Where do we want to go from here? And do we have the leadership to take us there?
Let's start by looking at some, but of course not all, of the things that we have going for us as a country:
Second-largest country in the world by land mass.
World's longest coastline, with access to both the Pacific and Atlantic Oceans, and increasingly the Arctic Ocean.
Third-largest proven oil reserves in the world (estimated at close to 300 billion barrels), behind Saudi Arabia.
World's largest producer and exporter of potash (which is a key component in fertilizers).
Energy independent and broadly rich in resources (see below diagram).
A fifth of the planet's surface freshwater.
Bilingual country — a quarter of the country reported using French at work in 2011 and, as of 2010, Canada had the 5th largest population of Francophones in the world (behind Morocco).
Multi-cultural country — over 20% of Canadians are foreign-born.
Robust immigration system that attracts top talent from around the world.
Highly-educated workforce with some of the world's best universities — over 60% of Canadian adults have a post-secondary education which is one of the highest rates globally.
Average life expectancy of 82.3 years (2023 data), which is about 5 years higher than that of the US.
Leader in AI, quantum computing, green tech, and space robotics — Canada produces more AI research papers per capita than almost any other country and the Stanford AI Index (2023) ranked Canada 4th behind only the US, China, and the UK.
Here's some of our bounty (via the Financial Times):

And yet, we are not a global superpower.
Worse, we are lagging behind our G7 peers in GDP growth, we are plagued by declining productivity levels, we are not investing enough in new business creation and entrepreneurship, and we have one of the worst affordable housing shortages in the developed world, among other things. We have been complacent for far too long, and a big part of this is because we have, or at least had, the world's largest economy next door demanding our goods.

As of 2024, 61% of all imported oil to the US came from Canada. And US refineries are specifically setup to refine our crude and viscous varietal. This is good for them. They buy our goopy oil at a discount, refine it, and then sell it for a profit. But now the US is clearly saying there's nothing they need or want from Canada. They've also demonstrated through their actions that, under the current administration, they can no longer be trusted as an ally and trading partner. So it behooves us to evolve. It behooves us to take matters into our own hands.
Here are some ideas:
Firstly, Canada should become a republic. For me, this is less about the monarchy being outdated (though it is) and more about the fact that a sovereign superpower like Canada should have its own head of state, and not a foreign King.
Canada needs to increase defense spending and exert much stronger sovereignty over its Arctic lands. For fiscal year 2024-2025, defense spending is projected to reach 1.37% of GDP. This obviously falls short of NATO's 2% target.
Remove red tape and unleash the Canadian economy. Last year, Canada exported more to the US than between its own provinces and territories. Huh? By some estimates, our economy could grow by up to $5,100 per capita simply by eliminating internal trade barriers.
Barriers also need to be removed from the delivery of new housing. Canadians have been over-indexing on housing because of eroding affordability. Our current market environment is an ideal time for market reforms. Here's just one recent post that offers a few concrete suggestions for how to do this.
Grow the Canadian population to 100 million people by 2100. Obviously there are two main ways to do this: We can help Canadians have more babies (more affordable housing certainly assists with this) and we can continue to attract the smartest and most ambitious people from around the world. As of 2022, Canada's fertility rate sat at 1.33, which is below the OECD average of 1.5 births per woman. (The above population target is the focus of a charitable organization called the "Century Initiative.")
Create a sovereign wealth fund akin to what Norway did. Today, Norway has the largest sovereign wealth fund in the world (based on assets under management) and it translates to over US$325,000 per Norwegian citizen and one of the highest GDPs per capita on the planet. Canada also has abundant natural resources as we know. The revenues generated from these resources should (1) accrue to the Canadian population and future generations and (2) steer the global economy toward a more sustainable future.
Invest heavily in new infrastructure. This includes everything from high-speed rail to oil pipelines. In 2020, Canada exported 82% of the crude oil it produced, with most of it going to the US via pipeline from western provinces. If the US no longer wants this, then we ought to find some new customers.
At the same time, we cannot let our abundant natural resources become a curse (see "the paradox of plenty"). We need to be a leader in the new economy. As I've written about before, I find it shocking, for example, that Canada is not stepping up more when it comes to new technologies like crypto. Vitalik Buterin, who is one of the founders of Ethereum and its most prominent figurehead, grew up in Toronto. He went to the University of Waterloo. We should be leveraging this homegrown talent to become a capital of crypto. And this is just one specific example.
Do everything we can to spur more innovation, more risk-taking, and more private investment. It's one thing to have great Universities that publish a lot of research, but ultimately we need to turn this into thriving companies that employ Canadians and generate wealth for Canadians. Here's a post I published in 2023 called, "Canada has an existential productivity problem."
This is obviously not a comprehensive list of all the things that Canada should be doing as a country. And invariably, some or many of you will disagree with some or most of what I have put forward here. But hopefully we can all agree that now, more than ever, we need a strong Canada. We need to start thinking of ourselves as an emerging global superpower.
Cover photo by Juan Rojas on Unsplash

I've only been to Berlin once. It was for a long weekend in 2007; one where my friend Alex Feldman and I grossly underestimated the required travel and ended up not sleeping very much. But it was awesome. I loved the city. So much in fact that the two of us ended up enrolling in a basic German class once we got back to Philadelphia. I, of course, remember almost nothing from this class, but I can say apfelstrudel with a surprising degree of convincingness, provided there are no follow-up questions.
One of the ingredients that, I think, made Berlin what it is today is that, at one point, it had a lot of empty buildings. As many of you know, these under-utilized assets ended up becoming a breeding ground for creativity and, more specifically, techno music. It's a perfect example of Jane Jacobs' mantra that new ideas required old buildings. This overall creative energy is also what gave Berlin the slogan, "poor but sexy." What the city lacked in wealth, it made up for in spades with coolness and creativity.
But that was then. Eventually the buildings filled up, the city got richer, the secret got out, and things started getting more expensive. In the span of a decade, Berlin saw its average apartment rents double. Which is why in 2020, the city approved a five-year rent freeze for the 1.5 million or so flats that were constructed before 2014. Eventually this freeze was deemed unconstitutional, but it didn't change the fact that the city was clearly becoming less poor and -- arguably -- less sexy.
Or maybe not. Guy Chazan -- who is FT's departing correspondent in Berlin, just wrote this in a recent opinion piece:
Despite everything it is still, in the words of one Irish friend of mine who has lived here for more than two decades, the world’s “largest collection of black sheep”. It is a sanctuary for renegades and misfits of all persuasions, who benignly coexist with their more bourgeois Bürger neighbours. Despite the rising cost of living here, it still seems to be full of creative people doing God knows what but always looking like they’re having the time of their lives.
And as anyone navigating its countless construction sites knows, it’s also a place of sheer, unbounded potentiality. As the art critic Karl Scheffler famously wrote in 1910: it is a city that is “damned to keep becoming, and never to be”. When I finally board the plane out of here after nearly a decade in this city, it will be that “becoming-ness” I’ll miss most.
This to me is an incredible compliment for a city that I barely know, but that he presumably knows quite well. What makes cities truly great is that they're constantly in a state of becoming. In fact, it's exactly how I would describe Toronto. To be, means you've arrived somewhere. It also implies a certain stasis. And that's not what you want when you're a city. You want a constant flow of news ideas and new energy changing things. It makes me happy to know that Berlin, seemingly, hasn't lost this.
Cover photo by Stephan Widua on Unsplash