Liberals ‘let emotions and tempers’ take charge in Trump dealings: Ian Lee
- Canada and the United States are engaged in an escalating trade war, with Canadian counter tariffs in effect and the US expanding their tariffs.
- There is uncertainty about whether the conflict will escalate further or if negotiations will resume.
- The Canadian government's ultimate goals and willingness to continue the trade battle remain unclear.
- Ian Lee warns that prolonged trade tensions could harm the Canadian economy, potentially causing a recession or capital flight.
Canada’s trade war with the United States is escalating as Canadian counter tariffs have taken effect and the Americans have widened the scope of their own tariffs. It’s unclear whether this might lead to further escalation or whether there’s a path back to the negotiating table. It’s also not clear what the government’s ultimate objective is or how long they’re prepared to fight this battle. In this interview, National Post’s Rob Breakenridge speaks with Carleton University business professor Ian Lee about the need for Canadians to accept some of the basic economic realities we’re facing and the potential economic damage from a prolonged trade war. If we’re not careful, Lee warns that we could stumble into a recession or even see capital flight out of the country.