Trump's Tariff Tyranny: Canada Must Ditch the Dollar and Arm for Sovereignty

Trump one week ago: "It’s a good thing for him [Carney] to sign a trade deal. If he can get a deal with China, he should do that."

 Those were the President’s words on January 16, 2026. Fast forward just eight days, and that initial approval has dissolved into an ultimatum: a threatened 100% tariff on all Canadian goods. By linking Canadian trade policy to his territorial ambitions in Greenland and the construction of his "Golden Dome" missile shield, Donald Trump has moved beyond mere protectionism into a realm of pure geopolitical fantasy. To suggest that a total economic blockade is an appropriate response to Canada’s sovereign trade decisions - specifically the pragmatic EV, canola, and seafood deals reached in Beijing - is to ignore the basic mechanics of global commerce. We are no longer debating policy; we are witnessing a presidency that has fully retreated into an alternate reality.

 This framing captures the essence of the current standoff. Following Prime Minister Mark Carney’s Davos address on January 20 - widely seen as a "eulogy" for the post-war rules-based order - the trade war has shifted from a policy dispute into a fundamental clash of worldviews. The contrast between Carney’s "Principled and Pragmatic" speech and Trump’s subsequent retaliatory threat is a collision between a world governed by rules and one governed by the survival of the fittest.

 By reverting to the "Governor Carney" taunt - a calculated jab at Carney’s past as the only man to head the central banks of two different G7 nations - the President is attempting to frame our Prime Minister as a mere mid-level administrator rather than a sovereign leader. By rescinding Canada’s invitation to his "Board of Peace" while notably extending one to Putin the tyrant, the President has signaled that allies are now viewed as subjects. This disrespect reached a fever pitch this week when Trump disparaged our NATO contribution, claiming allies "stayed a little back" from the front lines in Afghanistan. In reality, Canada led the mission in Kandahar - one of the most perilous regions in the world - taking over the front line from American forces so they could pivot to Iraq. To rewrite that sacrifice is the ultimate betrayal.

 But the spell only works as long as others comply. Canada’s new energy and trade agreements with China and India must now exclude the U.S. dollar entirely. From critical minerals to agriculture, every transaction should be settled exclusively in Canadian dollars (CAD). When a producer like Canada proves it can operate outside the USD system, the illusion of American monetary dominance begins to crack.

 If Prime Minister Carney truly wanted to twist the knife, he is uniquely qualified to do so. As a former central banker, Carney knows exactly where the pressure points are; he could move to divest Canada’s $475 billion in U.S. Treasury holdings - a move that is perfectly legal, perfectly deniable, and perfectly capable of nudging U.S. borrowing costs higher at a time when Washington's deficit is already screaming. Combined with the development of an independent, sovereign AI infrastructure, Canada is finally reclaiming its technological and economic sovereignty.

 As a Canadian, let me be crystal clear: I am hearing from people across this country that we didn’t ask for this, we don’t want this, and we are not your imperial side quest. It is time for this administration to take its "empire fantasy" and move on. Canada is a sovereign nation, not a satellite state. If we are to stop being a footnote in another nation's fantasy, we must finally write our own script.

 This unity should converge in one locked room, one weekend, no leaks. A single First Ministers’ Meeting becomes the moment Canada decides who it actually is. In 48 hours, they settle this question about sovereignty once and for all: When they walk out speaking with one voice - an event that happens roughly once every half-century - the Rubicon is crossed.

 Pre-signed and waiting would be confidential letters of intent from Tokyo and Seoul. Desperate for energy molecules sourced outside of Russia and the Middle East, they are eager to buy in a G7 currency other than the U.S. dollar. The dominoes would fall swiftly: the Bank of Canada would receive its new monetary mandate, and the Toronto Stock Exchange would start drafting the benchmark CAD contract. The package - including export controls, mandatory CAD settlement, and a trillion-dollar sovereign wealth fund seeded by energy royalties - would then be passed by Parliament in a single confidence vote. This forces the Canadian Conservatives into a clear, high-stakes choice: defend Canadian national interest, or align with Trump and Vance.

 In a world governed by "survival of the fittest," diplomatic norms are no longer a sufficient shield. One last thing: proponents of a "Canada First" approach often overlook a key fact - nations with nuclear deterrent capabilities are rarely, if ever, annexed. This is a lesson Ukraine has learned through painful experience. Canada stands alone in this geopolitical landscape, and perhaps the examples of Ukraine offer insights worth heeding. With a nuclear deterrent, no one could claim we are not doing our bit for national defence and looking after the homeland.