In confidential memo, LeBlanc asks for ideas on how to fight back against U.S. protectionism

Finance Minister Dominic LeBlanc has called on his colleagues to brainstorm ideas for the upcoming spring budget to combat U.S. protectionism. Despite securing a temporary halt to President Donald Trump’s proposed tariffs, the threat of protectionism looms large over Canada’s economy.

In a confidential memo obtained by CBC News, LeBlanc emphasized the need for initiatives that address the current Canada-U.S. dynamic and strengthen national unity. He is open to proposals that enhance affordability for Canadians, as well as projects that boost growth, competitiveness, and productivity.

The memo underscores the urgency of preparing for potential trade disruptions and mitigating their impact on the Canadian economy. While the pause on tariffs provides a brief reprieve, Trump’s intentions remain uncertain. He hinted at a possible 10% universal tariff on goods from all countries after a trade study concludes in April.

The looming uncertainty extends to Canada’s political landscape, with Prime Minister Justin Trudeau expected to step down following the selection of his successor on March 9. The possibility of an immediate election could disrupt the traditional budget timeline.

LeBlanc urged ministers to submit priority funding proposals by February 2 to address trade disruptions and provide temporary support to affected workers and businesses. The memo, likely written in late January, highlights the need for collective action beyond individual ministry interests.

In the face of economic challenges, LeBlanc emphasized the importance of cost-effective solutions such as reducing red tape and promoting internal trade and investment. As the Conservatives push for Parliament’s recall to address the crisis, the government maintains its ability to impose retaliatory tariffs and implement aid packages without legislative approval.

As Canada navigates the uncertain terrain of international trade, LeBlanc’s call for proactive measures underscores the gravity of the situation. The forthcoming budget will play a crucial role in safeguarding Canadian interests and ensuring economic resilience in the face of evolving threats.