Canadians should kiss Trump’s ring. He just shocked their economy back to life

Published July 28, 2026 9:00am ET



According to a recent report, nine of the 10 premiers will now allow full free trade among all their provinces, at least insofar as beer, wine, and liquor are concerned.

Canadians ought to bow down and kiss President Donald Trump’s ring. That is because this new provincial initiative emanated from his recent announcement of a 50% tariff on many exports heading in a southward direction between the two countries.

As for Quebec, the only holdout (remember, Canada has 10 provinces), the question ought to be not whether this French majority province ought to secede from the Great White North, but whether Le Belle Province ought to be kicked out of this country and compelled to set itself up as a separate nation — if it insists on going its separate way on this matter.

Why?

That is because free trade is to a country what blood is to the body. Unhampered exchange is what brings about prosperity, reduces poverty, and yields economic efficiency. The reason Canada is now in such poor shape is due to the present economic arteriosclerosis from which it suffers. There are actual internal interferences with trade in this benighted country.

Want some evidence as to the ill effects of the present internal barriers to trade? If all of Canada were the 51st state, see Trump on this, how would it rank in terms of GDP per capita compared to its new U.S. sister states?

The Canadian GDP per capita is around $55,500. The U.S., roughly $84,5000. The poorest state in the U.S. is Mississippi at $51,416. Canada edges out that state. But the next-poorest states, West Virginia at $57,711 and Arkansas with $58,221, clean Canadian clocks. To summarize, Canadians are poor church mice. How would the richest Canadian province do in these sweepstakes? Alberta would qualify in this context, and would remain near the very bottom of the U.S. compilation, in the lowest half dozen.

This is nothing to brag about for our northern neighbors. Yes, Canadian weather is a bit cooler than the country to the south of it, but at least it does not suffer from global warming, to the extent that this phenomenon exists at all. On the other hand, it has a more skilled labor force, much less crime, comparatively rare mass protests, far better racial relations, and, in many other ways, ought to be ranked much higher compared to U.S. states than it is in terms of income and wealth.

One of the big differences is that the U.S. is a gigantic internal free trade zone, while Canada is not. So, citizens of that country owe a great debt of gratitude to Trump for encouraging them to get their heads out of a different part of the body politic. Yes, every once in a while, one of the Great Lakes States tries to protect its brittle wine industry from California imports, but the Supreme Court quickly and unambiguously puts paid to the attempt at mercantilism. Not so in Canada, not so at all. There, that economically illiterate system is endemic, at least until recently.

Alcoholic beverages are a good start, but if Canada wants to have an economy worthy of the name, that should be only a drop in the bucket.

Yes, yes, many U.S. citizens still emigrate to Canada. Their lower crime rates, more peaceful society, and better racial relations are an attraction. But Canadians need not lose these benefits merely by embracing free enterprise to a greater degree.

How does Canada stack up internationally? Here is a list of countries with either tariff or nontariff barriers to internal trade: Canada, Australia, China, India, Brazil, Nigeria, Indonesia, Russia, Mexico, Argentina, South Africa, Pakistan, Philippines, Thailand, Turkey, Vietnam, Bangladesh, Kazakhstan, Algeria, Morocco.

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The number of wealthy countries on this list is almost as scarce as hen’s teeth. Does Canada really belong on it? It is time, it is long past time, that this country exit from this list, and not only with regard to booze.

I was appalled and dismayed that Argentina was included on this list of shame. I have no doubt that free-enterpriser President Javier Milei is moving heaven and earth to eliminate the country he leads from it. Canada should emulate his efforts. Every country that seeks prosperity more than economic arteriosclerosis should do likewise.

Walter E. Block is the Harold E. Wirth eminent scholar endowed chairman and professor of economics at Loyola University New Orleans.