In 2025, both the USA and Canda saw significant shifts. Both countries swore in new leaders who in very different ways reframed political debate so that economic strategy, trade, and national competitiveness dominated the political agenda.
In the USA, although Donald Trump who has long blurred the line between politics and economics, in this term intensified the approach of using economic Leverage as political Strategy. Trump’s messaging consistently tied national strength to economic dominance, making economic policy the core of his political brand.
Tariffs became his biggest political tool. He used economic pressure for political negotiations with nations.His tariffson Canadian goods have reshaped the entire U.S.–Canada relationship ignoring historical diplomatic ties and forcing economic issues to the center of political debate. He constantly enmeshed immigration and border security issues with tariffs in his negotiations with Canada. His threat and desire to annex Canada is all through inducing economic subjugation. He has succeeded in exerting significant influence on Canada’s border security and immigration policy through economic pressure.
In Canada, Mark Carney, a former central banker entered politics with a reputation built almost entirely on economic expertise. Since becoming prime minister, he has centered his leadership on economic restructuring. He has repeatedly emphasized that Canada must grow and diversify its economy, presenting this as the country’s primary challenge rather than a partisan issue. He frames economic expansion as the national mission. He rolled back key climate policies like Carbon tax he once supported with unparalleled passion. Since becoming the Prime Minister, he stopped talking about emissions and incessantly talked about investments.
Carney warned that the decades long trend of deepening economic integration with the US is “now over”, signaling a need for new economic strategies and alliances. This reframed foreign policy as economic survival.
After Trump imposed new tariffs on Canadian goods, Carney unveiled a nation‑building infrastructure push to strengthen domestic industry and supply chains. Economic resilience through inter-provincial trade became the political message. He continues to downplay political drama and positions economic results over political theater. Even in a minority goverenmnet, it is hard for the strong Conservative opposition to challenge his economic agenda as it resonates with a lot of their own policies. He has appointed Mark Wiseman, a Canadian Financier and Businessman as the next ambassador to the USA.
In 2026, we will continue to see trade relationships define diplomatic postures. The upcoming CUSMA review will be a focal point, with Trump using trade as a platform to assert USA priorities and influence Canada’s policy
Affordability, job losses, infrastructure, supply chains and tariffs will continue to dominate headlines and political narratives will revolve around growth and national competitiveness. In 2026 economic policy will be political strategy and whether Canada likes it or not, it will be more a contest overeconomic futures and lesser on ideological visions.
Manpreet Grewal
