What’s next for Canada? Lisa Raitt on politics and the economy in the Carney era

In this episode of Smart Advice, Carissa Lucreziano sits down with the Honourable Lisa Raitt, former federal cabinet minister and current Vice Chair of CIBC Capital Markets, to navigate the complex interplay of politics, economics, and markets. With insight shaped by decades of experience in government and now in the financial services sector, Lisa cuts through the noise to reflect on what matters most: Canada's sovereignty, strategy, and resilience in a rapidly changing global landscape. Be equipped with insights to make sense of volatility, understand the tools available to weather potential changes in US-Canada relations, and learn where smart money might be headed next. This episode is for every Canadian asking how to turn economic uncertainty into actionable opportunity. Here are three reasons why you should listen to this episode: Learn how political shifts, including Canada's new leadership, could reshape economic priorities at home and abroad. Understand the long-term implications of Donald Trump's return to the global stage and how Canada must prepare for potential changes in US-Canada relations. Gain clarity on growth opportunities in sectors like power generation, manufacturing, and national defence. Resources CIBC's "Smart Advice" Podcast and Website - Website | Apple Podcast | Spotify The Raitt Stuff Visit CIBC for more Smart Advice, including a recent piece on ‘Navigating uncertainty and market volatility’ Episode highlights [00:05] Are Canadians ready for future US-Canada relations? Lisa Raitt is introduced as a former cabinet minister in natural resources, labor, and transportation, now serving as Vice Chair at CIBC Capital Markets. Canadians today face rising global tensions, inflationary pressures, and heightened political transitions which are reshaping economic expectations and policies. Lisa shares her optimism over the clarity offered by Canada’s newly elected Prime Minister, Liberal leader Mark Carney, noting the stability—even in a minority government. The current US-Canada relations may shift with Prime Minister Carney’s approach, but Lisa warns against overconfidence. Trade negotiations require more than charisma—leaders must find practical ways to provide the U.S. with a political “win” while protecting Canadian interests. [02:24] The rise of economic nationalism Lisa outlines how economic nationalism, especially in the US, has led to the weaponization of tariffs and elevated supply chain threats. Canada’s dependence on US trade is now seen as both a strength and a potential vulnerability—prompting calls for increased self-reliance. She advocates for doubling down on sectors where Canada already has a comparative advantage: energy, agriculture, mining, and forestry.

[08:48] Lisa: “What has happened in the time of Trump is we realize that you can't continue on just accepting the United States growth as the growth that we're going to get; that we actually have to do some work ourselves”

Government must play a dual role—advocating for global trade fairness while supporting long-term investment in domestic capacity and infrastructure.

[09:31] Understanding Trump’s policy vision Unlike previous leaders, Trump’s economic policy direction is guided less by data and more by ideology, particularly focused on ‘Made in America’ mandates. Lisa emphasizes that traditional counter-arguments (e.g., logic, economic impact) often fall flat with the Trump administration. Trump is unapologetically focused on rebuilding American manufacturing—painful or not—for the long-term benefit of US jobs and industrial strength. Canadian leaders and citizens must stop assuming rational policy shifts or midterm electoral changes in the US will automatically solve trade tensions.

[12:18] What’s driving American progress? Despite controversial rhetoric, some of Trump’s policies—bringing semiconductor production back, advancing nuclear energy—could deliver strategic benefit. The concern lies in whether these wins are drowned out b