National Post
· collected 2026-08-27 · by Special to National Post
analysis
This opinion piece argues that Canada's economic woes are largely self-inflicted, rather than caused by the US or President Trump. The author, Stephen Nagy, criticizes the Trudeau government for mishandling its relationship with the US and prioritizing domestic politics over diplomacy. According to Nagy, under Trudeau, Canada repeatedly ignored warnings about foreign interference from China and lost credibility within the Five Eyes intelligence alliance. Prime Minister Mark Carney has continued this pattern of blaming the US and courting a "strategic partnership" with China.
Written by the local model on 2026-08-27,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Prime Minister Mark Carney has undeniably brought a measure of dignity, sharp intellect and technocratic excellence back to the Prime Minister’s Office.
asserted
Carney → bring → Office
This is a welcome change after a “lost decade” defined by poor governance and the severe mismanagement of Canada’s socio-economic environment and its most important relationship, with the United States.
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This → define → States
However, Canadians must face an uncomfortable truth.
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Canadians → face → truth
Our teetering economy, lagging productivity and housing crises were entirely made in Canada.
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economy → teeter → Canada
They predated the first and second terms of U.S. President Donald Trump.
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They → predate → Trump
Yet, the governing Liberal Party has found it politically expedient to gaslight the public, blaming our current woes on the U.S. and the current occupant of the White House.
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it → govern → House
It is always easier to point a finger at the caricature of the “Ugly American” than to admit we have spent the last decade or more behaving as an “Ugly Ally.”
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we → point → Ally
Under Justin Trudeau, the previous prime minister, Canada’s relationship with its most vital security and trading partner was disastrously mishandled.
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relationship → mishandle → partner
Cabinet ministers routinely prioritized domestic political points over cross-border diplomacy.
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ministers → prioritize → diplomacy
We saw Trudeau explicitly campaign against “MAGA conservatism,” while Foreign Affairs Minister Mélanie Joly publicly mused about creating a “game plan” to deal with a hypothetical authoritarian shift in the US.
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Joly → see → US
After enjoying dinner and a selfie at Mar-a-Lago following Trump’s 2024 electoral victory, Trudeau flew back to Canada.
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Trudeau → enjoy → Canada
Just days later, he called Kamala Harris’s electoral defeat a setback for women.
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he → call → women
While Ottawa was busy moralizing at Washington, it was asleep at the wheel on actual national security.
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it → moralize → security
The Trudeau government repeatedly ignored stark warnings from our Canadian Security Intelligence Service and think tanks like the Macdonald-Laurier Institute regarding foreign interference and elite capture, primarily orchestrated by Beijing.
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government → ignore → Beijing
Consequently, Canada became the black eye of the Five Eyes intelligence alliance.
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Canada → become → alliance
We were left out of the Quad and AUKUS.
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We → leave → Quad
We simultaneously managed to alienate India and frustrate Japan, a vital geoeconomic partner that has expertly navigated the very U.S.-China friction Canada fumbles.
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Canada → manage → friction
Carney has done his best to stop the bleeding, and for that, Canadians should be thankful.
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Canadians → do → that
However, his geopolitical compass remains fundamentally miscalibrated.
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compass → remain → ?
Rather than abandoning the partisan habit of using the U.S. as a scapegoat for Canada’s structural economic stagnation, Carney has continued the gaslighting.
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Carney → abandon → gaslighting
Worse, he has actively courted a “strategic partnership” with China, a state with a documented, deep track record of foreign interference in Canadian democratic institutions, and Washington’s primary strategic competitor.
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he → court → institutions
At his Davos 2026 address, Carney drew a false equivalence between the U.S. and China, suggesting Canada could somehow float above the fray as a neutral middle-power broker.
uncertain
Canada → draw → broker
Washington is not going to tolerate a contiguous neighbour and NORAD partner integrating its economy with a hostile strategic competitor.
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neighbour → go → competitor
It was the Trump administration that inserted Article 32.10 into the USMCA (CUSMA) trade agreement, effectively giving the U.S. veto power over any free trade agreement Canada might pursue with a “non-market economy” like China.
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Canada → insert → China
But the Biden administration maintained and rigorously enforced that exact same geoeconomic architecture.
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administration → maintain → architecture
As abrasive and difficult as the current White House can be, Carney’s job is not to posture for the Davos crowd.
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job → posture → crowd
It is to steer Canada away from self-destructive anti-American sentiment, manage the U.S. leadership with pragmatic cognitive empathy, and ensure Canada is anchored securely within the reorganization of the North American and global supply chains.
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Canada → steer → chains
We are not living in the 1990s.
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We → live → 1990s
While other nations have risen, our relative clout, military resources, and diplomatic credibility have severely declined.
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clout → rise → ?
We cannot convene coalitions to resist American pressure while simultaneously relying on the American taxpayer to subsidize our continental defence.
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We → convene → defence
Canada desperately needs a new identity and a new grand strategy.
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Canada → need → identity
That strategy cannot be rooted in a romanticized nostalgia for middle-power diplomacy, nor in a contrarian desire to poke Washington in the eye.
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strategy → root → eye
It must be built on the cold, structural realities of our geographic, institutional, and cultural proximity to the United States.
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It → build → States
Until the Prime Minister’s Office accepts this, the “Ugly Ally” will continue to find itself isolated, outpaced and ignored.
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itself → accept → this
His work focuses primarily on Indo-Pacific affairs, foreign policy, security, and great-power competition.
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work → focus → affairs
