For decades, Canada’s economic fortunes have been tied to its southern neighbour — but what happens when that relationship falters? As a new wave of tariffs rattles global markets, professor Dimitry Anastakis joins The Executive Summary to trace Canada’s long history of trade wars with the U.S., the hard lessons they’ve taught us, and why this time, the old playbook may no longer work.

Show Notes

[0:00 ] Meet Dimitry Anastakis - a University of Toronto professor and expert on Canadian business and economic history, who says Donald Trump’s views on tariffs were really cemented in the ‘80s, putting him at odds with the Republican Party at the time. 

[1:03 ] Canada’s economy is enmeshed with that of the U.S., which doesn’t bode well for us as we face a new trade war. 

[2:07 ] A quick recap of the 2025 trade war between Canada and the U.S. to date. 

[3:43 ] Lessons from the past — we’ve been in this type of situation with the U.S. before. 

[3:59 ] We’ve faced familiar trade disputes in the 1890s, 1920s to ‘30s and the ‘70s to 80s. 

[5:57 ] Reagan-era trade disputes — The trade war of the ‘80s was different from the earlier spats – with the U.S. using it as a tool to convince Canada to join the North American Free Trade Agreement. 

[7:10 ] Canada’s historical options in trade disputes — historically, trade wars are an opportunity for Canadians to reflect on their best path forward. And we usually face three choices. 

[8:01 ] Why have we eschewed the “third option” of diversifying our trading partners and instead increasingly turned into partnerships with the U.S.?

[9:01 ] And how has closer ties to the U.S. helped us through post-trade war recessions? 

[10:18 ] Why this trade war is different.

[10:38 ] How are tariffs actually supposed to work, and why is that incongruent with how Donald Trump is wielding them? 

[11:22 ] What role do previous trade agreements play if a key player just decides to ignore them entirely? 

[12:09 ] Canadians are feeling betrayed. 

[12:37 ] And if these tariffs remain in place long term, it does not bode well for the Canadian economy. 

[13:40 ] Resilience in the face of disruption — perhaps now is a time for us to reflect and move towards a new economic path, less dependent on the U.S.

[15:29 ] “We do need to expect that there's going to be a rough ride. But most importantly, we need to rise to the challenge. We need entrepreneurs and governments and firms to start thinking about how Canadians can exploit the advantages that they have in a new kind of economy in the 21st century. Canadians should recognize that this provides an opportunity for us to start building on our strengths. And, you know, the great thing is that history shows us that the Canadian people have been pretty resilient in these situations.”

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