Dear John,

Prime Minister Carney recently indicated that it is unlikely Canada will be able to negotiate a trade agreement with the U.S. that doesn’t include tariffs.

While it is deeply concerning that President Trump continues to threaten and implement tariffs, Canada has been speeding toward another economic crisis of our own making.

We’re barely halfway through 2025, and already we’ve seen a dramatic loss in economic momentum.

Job growth is slowing.

Consumer confidence has plummeted.

The housing market has stalled.

Business investment continues to dry up.

And now, with Trump’s tariffs set to take effect, conflict abroad destabilizing global markets, and our largest trading relationship in limbo, many economists are predicting a recession this year.

Even under optimistic scenarios, Canada’s growth is expected to limp along at barely 1%. Unemployment is set to rise. And yet the federal government – distracted by political optics – offers no clear path forward.

Canada simply cannot solve these challenges with more deficits, more red tape, or more political tinkering with the economy. These are in large part the reasons why our economy is stalling.

Instead, policymakers must focus on the basics:

• A stable trade relationship with the U.S.

• Competitive tax and regulatory policy

• Project approvals grounded in efficiency and evidence – not ideology

• A private sector empowered to grow, invest, and create jobs

Policymakers must recognize that Canada is a largely market-based economy where the private sector rather than government is responsible for the bulk of production, employment, investment, innovation and exports – and design policies with this in mind.

These are the very ideas the Fraser Institute has spent decades championing, and we’re not stopping now!

In a climate of political noise, our research and commentary continue to cut through – informing national debate, reaching millions of Canadians, and influencing policymakers who are ready to listen.

But we can only do this with your support.

If you believe that facts – not fear – should guide Canada’s economic future, please consider making a tax-deductible donation today.

Thank you for your ongoing support.

Sincerely,

Niels Veldhuis
President
The Fraser Institute