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The ongoing trade dispute with the United States is casting a pall over the North American economy.

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Opinion

Hey there, time traveller!
This article was published 09/04/2025 (183 days ago), so information in it may no longer be current.

The ongoing trade dispute with the United States is casting a pall over the North American economy.

The tariffs imposed and promised by U.S. President Donald Trump could very well drop Canada into a recession. Canada is pledging to respond in kind with retaliatory tariffs targeting sectors like American spirits (specifically, bourbon) and brands like Tropicana and Harley-Davidson.

While this back-and-forth will be incredibly damaging for both countries, it has the potential to absolutely crush the Canadian economy. But it also presents us with an opportunity.

A wave of “Buy Canadian” sentiment has been sweeping across the nation, buoyed by a level of nationalism not typically seen in Canada (which was no doubt fed, at least in part, by Canada’s hockey victory over the U.S. in the 4 Nations Face-Off tournament).

But as we consider how we will retaliate to Trump’s tariff threats, we should be thinking less about orange juice and motorcycles and more about the big hammer in our arsenal — energy security, shoring up our Canadian supply chains and building the next generation of affordable energy in Manitoba.

This interdependence has historically benefited both countries. Yet, as tensions rise over trade policies and tariffs, Canada’s heavy reliance on the U.S. market exposes vulnerabilities. A tariff on Canadian energy exports, or retaliatory measures on imports, could disrupt supply chains, inflate costs and hinder economic growth.

Canada’s energy industry is on the verge of a massive transformation; never has it been more important to both invest in and protect Canadian energy. That creates tremendous opportunity right here in Manitoba.

We can strengthen Canadian supply chains by investing in local manufacturing, particularly as we pursue jobs and innovation in the clean economy, and meet the demand for even more low-cost hydro power.

This will not only help Canada compete on a global scale and attract foreign direct investment, but it will also ensure that necessary infrastructure for the expansion of Manitoba Hydro and other Canadian electrical utilities can be made-in-Canada instead of imported from China, South Korea, western Europe … or the U.S., with all of the requisite tariffs that will entail.

Our friends to the south are not shy about putting their country first. It’s past time we followed their example and started beating on the Team Canada drum. We live in a volatile world; we need to make sure Canadians are supporting Canadian industries so that we can do the jobs here, with our people and our supply chains today and for decades to come.

Energy and electrical grid security should be a big part of that. Canada must prioritize this as a pillar of our national strategy — diversifying export markets, expanding capacities and enhancing infrastructure.

At a time when Canada is trying to decarbonize its economy, bolstering domestic infrastructure is critical.

Estimates from industry insiders indicate Canada will have to at least double its capacity for energy generation and transmission to accommodate the federal government’s Net Zero 2050 objective. This will require a significant investment in the system to add new infrastructure and update aging pieces that may not be expected to handle the coming load.

Furthermore, leaning on a made-in-Canada solution will strengthen Canadian manufacturing and support high-skilled Canadian jobs. This is a rare opportunity, and if we don’t get it right at the outset, we will regret it.

The federal government has a crucial role to play in facilitating this transition.

Clear policy signals, financial incentives and regulatory certainty are necessary to attract investment and build public confidence in Canada’s energy future, not to mention the provincial government’s role in delivering on its commitments to keep energy rates low, build more capacity, and create good jobs for Manitobans in the process.

The tariff dispute with the U.S. is a wake-up call for Canada. It exposes the risks of over-reliance on a single trading partner and underscores the need for a diversified and resilient domestic energy strategy with strong local supply chains. By investing in infrastructure, innovation and collaboration, Canada can secure its energy future, protect its economy and position itself as a leader in the global energy transition.

Energy security is not just about managing today’s challenges; it is about preparing for tomorrow’s uncertainties. As we navigate an increasingly complex global landscape, a strong, self-reliant energy strategy is not just an option — it is a necessity.

George Partyka is chief executive officer of PTI Transformers, Canada’s largest 100 per cent Canadian owned manufacturer of electrical transformers. It has operations in Winnipeg and Regina.

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