Something’s not working.
You can see it in stalled business investment. You can feel it in the rising cost of essentials. And you can hear it in conversations at boardroom tables and kitchen tables alike: a growing sense that Canada is falling behind.
To its credit, the new federal government has taken encouraging steps. They've removed the consumer carbon tax, cutting taxes for the middle class, and are finally addressing long-standing interprovincial trade barriers. These are real signs of progress. But they must be the beginning, not the end.
If we want to restore affordability and rebuild competitiveness, we have to go further—and faster.
A High-Cost Economy
Canada has one of the highest tax burdens in the G7. That’s a challenge not only for households but for businesses trying to grow. When costs rise across the supply chain, they don’t just affect margins, they show up in the price of everything.
A Government That’s Lost Focus
We’ve seen too many examples of inefficient spending and weak oversight. From ballooning procurement budgets to programs with unclear value, the pattern is the same: growing costs without growing results.
A Narrow Economic Bet
Electric vehicles and clean tech matter, but they’ve received a disproportionate share of public funding, while core sectors like food, agri-food, and consumer goods manufacturing are left behind. These industries are ready to grow and deliver results now. We shouldn’t be ignoring them.
Carbon Policy That Adds Cost Without Clarity
Canada’s carbon pricing system is a patchwork of federal and provincial models. Whether through B.C.’s carbon tax, Alberta’s TIER system, or Quebec’s cap-and-trade, the result is often the same: rising compliance costs for industrial producers in energy-intensive, essential sectors. We need a carbon strategy that supports both sustainability and competitiveness.
Too Much Red Tape, Too Little Growth
Canada ranks near the bottom of the OECD in project approval timelines. The regulatory burden is slowing investment and dragging down productivity. Businesses want to grow, but they need permission to move.
An Outdated Trade Playbook
Our dependence on the U.S. is a strength, but it’s also a risk. Retaliatory tariffs no longer serve as leverage. More often, they’re just a tax on Canadian consumers. We need to reduce that vulnerability by diversifying trade and expanding market access for Canadian-made products.
What Comes Next
We’re not starting from scratch. Some reforms are already underway. But we now need a focused, coordinated effort to create the conditions for sustainable growth.
That means: lowering interest rates to unlock investment and ease pressure on Canadian households; rebalancing climate policy to reduce costs in essential industries without compromising emissions goals; cutting income taxes to restore household confidence and business hiring power; reining in government spending with stronger accountability and more disciplined oversight; investing in sectors that drive affordability, including agri-food, energy, and consumer goods; streamlining regulation to reduce delays and remove barriers to building; and modernizing our trade strategy to build resilience and expand opportunity.
When I speak with FHCP members across Canada, the message is clear: they want to invest here. They want to hire, grow, and innovate. But they need a policy environment that supports that ambition, not one that makes it harder.
We know what needs to be done. What’s required now is urgency, focus, and follow-through.
The early signs from the Carney government suggest that shift may be possible. But the pace must pick up—and the vision must broaden.
Canada has what it takes to succeed. We just have to clear the way.
This op-ed was originally published on LinkedIn.