Canada Takes Activist Approach to Economy Amid Global Uncertainty

The collapse of trade talks between Canada and the US over the weekend has highlighted the era of uncertainty and unpredictability we live in. This upheaval, caused by geopolitical rivalry, supply-chain disruptions, technological change, and economic shocks, has affected households with higher prices, made people uncertain about their jobs, and left businesses cautious about investing.

Canada's federal government has responded to this shift by adopting an activist approach to the economy, providing supports for tariff-affected workers and businesses, derisking private investment, identifying projects of national significance, and expanding its role in housing, infrastructure, defense, and strategic industries.

The Business Council of Canada (BCC) has launched the Strengthening Canada project to consider how Canada can strengthen its economy and institutions in a rapidly changing world. The project began with a survey of BCC members, CEOs and entrepreneurs who lead many of Canada's largest companies, which highlighted four broad themes.