Canada is facing economic challenges as U.S. tariffs tighten and domestic productivity lags, writes Don Drummond in a Globe and Mail op-ed. He warns that “weak within and shaken by tariffs, Canada needs a new economic and fiscal model” to strengthen both domestic markets and global trade.

Drummond, formerly a senior official in the Canadian government and chief economist at TD Bank, highlights structural problems including “weak productivity, a growth-inhibiting tax structure, domestic trade barriers, high public debt and mounting spending pressures,” noting Canada’s decline from third to 18th in OECD labour productivity since 1960. He critiques current policies, saying that efforts to support industries, develop expertise, and encourage investment “will require higher productivity, competitiveness and freer trade within Canada” and a revamp of taxation and subsidies.

Drummond calls for urgent public engagement, arguing that “new economic and fiscal models are imperative, and the Canadian public must be extensively involved in their creation and adoption.”