Jim Balsillie, former chairman and CEO of Research In Motion, has criticized Canada’s economic policies, warning that the country is ill-prepared to withstand potential trade tensions with the United States. Speaking on CTV’s Question Period, Balsillie highlighted Canada’s “self-inflicted vulnerabilities,” emphasizing the need for a strategic overhaul to foster resilience amid shifting global trade dynamics.
As U.S. President-elect Donald Trump prepares to re-enter office, he has threatened a blanket 25% tariff on all Canadian imports. Initially citing border security concerns, Trump has since framed tariffs as a mechanism to address the U.S. trade deficit with Canada. Balsillie contends that Canada’s reliance on outdated economic strategies has left it unprepared for such challenges.
“The game changed 30 years ago,” Balsillie stated. “Other successful countries adapted, but Canada doubled down on old strategies, eroding our prosperity and security.” He pointed to signals from Trump’s first term, including Jared Kushner’s advocacy for provisions in the Canada-United States-Mexico Agreement (CUSMA) that grant the U.S. leverage over trade relationships. “We were warned. Kushner told us Canada is seen as a tenant, and now Trump is back to raise the rent.”
Canada’s economic challenges are compounded by declining productivity. A 2023 report by the Organisation for Economic Co-operation and Development (OECD) ranked Canada last in projected GDP growth among OECD nations over the next 40 years. Labour productivity also fell by 1.8% in 2023, the worst in the OECD. Experts warn that a 25% tariff could shrink Canada’s GDP by 2.6% and cost Canadian households an average of $1,900 annually.
Balsillie underscored the urgency of reducing dependence on the U.S. economy, likening Canada’s policies to a fragile “house of sticks.” He called for systemic reforms, emphasizing the need for innovative economic strategies and stronger domestic value chains. “It’s about stopping the stupid,” he remarked. “We need new voices and proper economic discourse, or the erosion will continue.”
Balsillie’s efforts to address these issues include his work with the Council of Canadian Innovators and the newly launched Canadian SHIELD Institute, aimed at fostering homegrown innovation. He has donated $10 million to kickstart the initiative, which he hopes will empower young scholars to build a more resilient economy.
“The best time to plant a tree was 20 years ago; the second-best time is now,” Balsillie said. “I’m betting on the bright minds ready to build a better country.”