Today, the United States started the process of imposing 25% tariffs on Canadian exports, and instead of cooling tensions, most of Canada’s political figures seem determined to ramp them up.

Prime Minister Justin Trudeau’s outgoing government has threatened export taxes on oil while his could-be successors, Chrystia Freeland or Mark Carney, talk up escalating retaliation. Conservative Leader Pierre Poilievre frames the crisis as Canada’s chance to match Trump blow for blow. Ontario Premier Doug Ford is going even further, announcing a $22 billion spending spree on infrastructure, claiming it will protect the province’s economy. NDP Leader Jagmeet Singh is urging immediate relief for workers but is short on specifics, leaving the door open to large-scale support that could inject new money into the system.

Mark Carney, the Liberal leader frontrunner, is already discussing a potential relief package with Jagmeet Singh, echoing past talk of a Universal Basic Income (UBI) in Canada, an idea that resurfaces whenever crises loom. It could become a reality if Ottawa prints or borrows massive sums to cover direct cash transfers this time.

History reveals that overblown spending often sends economies into a tailspin, particularly if it relies on creating new money. Weimar Germany’s monetary collapse in the 1920s, Zimbabwe’s repeated currency devaluations in the 2000s, and Venezuela’s more recent hyperinflation all show the perils of pushing more dollars into circulation than real productivity can justify.

Only Alberta Premier Danielle Smith and People's Party of Canada leader Maxime Bernier stand apart from the chorus demanding a trade war.

Smith contends that President Trump’s stated reasons for tariffs, illegal drugs and immigration issues at the border should be tackled head-on, and she has ramped up border security, announcing $20m in spending at the border, to prove Alberta’s commitment. Critics say her approach undercuts a unified front. Yet proponents argue that her reluctance to embrace a “spend-more” solution might shield Alberta and Canada from inflationary pressures if the rest of the country funnels billions into new programs and retaliatory measures.

Bernier likewise warns that excessive government spending will only deepen the crisis. In a recent X post, Bernier accused “Libs, NDP and fake Cons alike” of wanting to spend “tens of billions of borrowed and printed dollars,” potentially bankrupting Canada and making citizens dependent on the government.

He and Smith maintain that directly addressing border security rather than blanketing the country with new funding is a more sustainable path. With Canadians facing higher prices and job insecurity in the weeks ahead, the choice between ramping up government spending or rethinking the approach to the U.S. dispute could shape the nation’s economic future.