Canada's New Prime Minister Joins the Tariff/Sovereignty Debate
Guests: Frank McKenna, Deputy Chair, TD Securities and Chris Krueger, Managing Director, Washington Research Group, TD Cowen
Host: Peter Haynes, Managing Director and Head of Index and Market Structure Research, TD Securities
In Episode 63, the focus of discussions in on two main topics: New Prime Minister Mark Carney's early days at the helm of Canada, and tariffs. Frank discusses Carney's decision to travel to Europe before the U.S., a move that was criticized by Saskatchewan Premier Scott Moe, and the significant downsizing of the new Liberal cabinet, a move that was sure to hurt some feelings inside the caucus. Frank provides the pros and cons of choosing Carney or Conservative Leader Pierre Poilievre to represent Canada in negotiations with President Trump, and he debunks the recent claims by former Prime Minister Stephen Harper that Carney didn’t deserve credit for Canada's response to the Global Financial Crisis.
In the tariff discussion, Frank dismisses Trump's repeated exaggerations about trade deficits equaling some sort of subsidy provided from the U.S. to Canada. Frank counters that the existing trade deficit is not a subsidy that costs the United States jobs; instead, it is a function of our abundance of raw material inputs that the United States imports from Canada.
Frank also lays to rest any notion that Canada's dairy sector is not open for business with U.S. suppliers. In fact, the U.S. has yet to use up more than half of its dairy quotas with Canada since the 2018 CUSMA agreement set new free trade supply limits. Frank finishes with some ideas for Canada's government to meet its NATO spending commitments, and his belief in the need to keep momentum moving forward with respect to the elimination of intra-provincial trade barriers.
| Chapters: | |
|---|---|
| 0:25 | Friendship Day in Colorado |
| 3:44 | Carney's Cabinet and First Trip to Europe |
| 9:02 | Carney or Poilievre – Who is Best Positioned to Negotiate with Trump? |
| 14:28 | Carney on Taxes |
| 16:41 | Harper on Carney's Contribution to Canada's GFC Response |
| 19:03 | Two East Coast Premiers Retire – Is this Coincidence? |
| 21:12 | Trump's Exaggerations Used to Justify Tariffs on Canada |
| 28:38 | Meeting NATO Defense Spending Target |
| 36:24 | Understanding Dairy Quotas – Not Just a Canada Issue |
| 48:08 | Is Momentum for Removing Intra-Provincial Trade Barriers Sustainable? |
| 50:25 | Caught in the Blue Jays Vortex… Again |
This podcast was recorded on March 17, 2025.
Full transcript to come.
