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The Impact of United States-Canada Tensions on Mental Health and Economic Well-Being

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Author
Kevin William Grant
Published
February 23, 2025
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Economic and political pressures from the U.S. are fueling anxiety, financial stress, and uncertainty in Canada. I examine the mental health impact and offer practical strategies for building resilience and economic stability.

In recent months, Canadians have been confronted with a series of high-pressure political and economic actions from the United States under President Donald Trump’s administration. These include rhetoric suggesting the annexation of Canada as the “51st state,” threats to national sovereignty and the imposition of high tariffs on Canadian goods. Beyond these direct attacks, the U.S. has also engaged in economic coercion, undermined trade agreements, and used intimidation tactics to pressure Canada into compliance with its geopolitical and economic goals.

The consequences of these tactics extend beyond economic concerns—they are impacting the mental health, daily lives, and overall well-being of Canadians. The combination of economic stress, geopolitical uncertainty, and lack of overt support from traditional allies has led to heightened anxiety, economic hardship, and a growing sense of vulnerability among individuals and communities.

Political and Economic Tactics Used by the U.S. Against Canada

To fully understand the impact of these developments, it is necessary to examine the tactics currently being used by the U.S. government and their real-world consequences for Canadians.

 “51st State” Rhetoric and Threats to Sovereignty

One of the most alarming aspects of Trump’s recent rhetoric has been the casual suggestion that Canada should become part of the United States. While this may appear to be political grandstanding, it carries psychological and geopolitical weight. Canadians have long defined their national identity in contrast to the U.S., particularly in areas of healthcare, social values, diplomacy, and economic independence.

This rhetoric can trigger feelings of powerlessness and fear, particularly for those who remember past U.S. attempts to undermine Canadian sovereignty. This also echoes psychological theories on identity threat, where an external force challenges an individual or group’s sense of self, leading to defensive reactions, stress, and anxiety (Branscombe et al., 1999).

For Indigenous communities and Francophones, who have fought for recognition and autonomy within Canada, these threats may be particularly distressing. The fear of cultural and political erasure intensifies anxiety, especially in communities with a history of resisting colonial or external control.

High Tariffs and Economic Coercion

The U.S. has imposed punitive tariffs on Canadian steel, aluminum, and agricultural goods, citing "national security" concerns. This tactic, often referred to as weaponized trade policy, is designed to weaken Canada’s economy and force political concessions. The impact is already visible:

  • Job losses and economic stress: Thousands of Canadian jobs in manufacturing and agriculture are at risk due to lost U.S. contracts and declining exports. Families who depend on these industries are facing financial hardship, which is linked to increased depression and anxiety (Frasquilho et al., 2016).
  • Inflation and cost-of-living increases: Many consumer goods, including food and household items, have become more expensive due to tariff-induced supply chain disruptions. Economic stress from rising prices can trigger chronic stress and insecurity (McEwen, 2007).
  • Small business closures: Local businesses that rely on cross-border trade are struggling to stay afloat, leading to financial precarity and loss of community economic stability.

Trade Disruptions and Resource Control

The U.S. has used pipeline politics, energy coercion, and trade agreement renegotiations to assert dominance over Canada’s natural resources and exports. Canada, being heavily dependent on energy exports to the U.S., faces significant risks as American policies continue to shift toward energy protectionism.

For working-class Canadians, this means job insecurity, fluctuating fuel prices, and increased financial stress. Communities that depend on resource industries—such as Alberta’s oil sector—are experiencing heightened anxiety and mental health crises due to economic instability (Hajizadeh et al., 2016).

Lack of Support from Allies and Diplomatic Isolation

Many of Canada’s traditional allies, including the European Union, the UK, and Australia, have remained largely silent in the face of U.S. pressure. Fear of economic retaliation and diplomatic fallout has led to a lack of strong public support for Canada. This isolation exacerbates a sense of betrayal and helplessness, particularly among Canadians who believe in international cooperation and multilateralism.

From a psychological standpoint, this can lead to collective anxiety and diminished national confidence, mirroring the effects of social exclusion on an individual level (Williams, 2007). Without strong external backing, Canada is left to navigate these challenges alone, further compounding stress and uncertainty.

The Psychological Toll on Canadians

The political and economic pressure from the United States is not just an abstract issue affecting policymakers and economists—it has real and tangible effects on the daily lives and mental health of Canadians. Economic uncertainty, threats to sovereignty, and deteriorating diplomatic relations create chronic stress, heightened anxiety, and a growing sense of insecurity. The psychological effects of these stressors are particularly severe for those who are financially vulnerable, reliant on trade-based industries, or deeply invested in Canada’s sovereignty and democratic institutions.

Increased Anxiety and Uncertainty

The constant flux of economic and political instability is a major driver of generalized anxiety, which can manifest in chronic worry, sleep disturbances, difficulty concentrating, and physical symptoms such as fatigue and headaches.

  • Economic instability creates uncertainty about the future. Many Canadians—especially those employed in export-driven industries, manufacturing, energy, and agriculture—are experiencing financial insecurity, chronic stress, and difficulty planning for the future. This aligns with research showing that economic downturns and external political threats significantly increase rates of anxiety disorders (Canetti et al., 2012).
  • The unpredictability of U.S. policies—such as tariff fluctuations, threats of trade restrictions, and changing diplomatic strategies—exacerbates feelings of helplessness. Canadians are unsure whether jobs, small businesses, or essential goods and services will be affected next.
  • Rising costs and inflation contribute to daily stress. Increased prices for essential goods—including groceries, fuel, and home heating—result in financial pressure on households. Economic uncertainty makes budgeting, saving, and long-term planning difficult, further amplifying stress levels.
  • Psychological stress from the perceived erosion of sovereignty. The idea that Canada could be annexed or bullied into submission through economic warfare or coercive diplomacy creates fear and anger. Research suggests that threats to national identity can produce strong emotional reactions, including anxiety, resentment, and a sense of loss of control (Branscombe et al., 1999).

For Canadians living paycheck to paycheck, these stressors can become debilitating, leading to mental exhaustion, heightened emotional reactivity, and difficulty coping with daily responsibilities.

Mental Health Struggles Due to Economic Pressure

Financial distress is one of the most significant predictors of mental health decline, with studies consistently showing a strong correlation between economic hardship and increased rates of depression, substance abuse, and even suicide(Richardson et al., 2017). The current political and economic climate in Canada is worsening these mental health risks, especially among vulnerable populations.

Increased Depression and Hopelessness

  • The inability to secure stable employment, afford basic necessities, or plan for retirement can lead to feelings of hopelessness, despair, and emotional numbness.
  • Individuals with pre-existing mental health conditions, such as depression or generalized anxiety disorder (GAD), are at heightened risk of worsening symptoms due to financial strain.
  • The stigma surrounding financial struggles may prevent some Canadians from seeking mental health support, leading to social withdrawal and emotional isolation.

Rising Rates of Substance Abuse

  • Economic hardship has been strongly linked to increased alcohol and drug consumption, as individuals self-medicate to cope with financial stress (Frasquilho et al., 2016).
  • In provinces heavily reliant on trade and resource industries—such as Alberta, British Columbia, and Ontario—rates of opioid use and alcohol dependency have already been rising in response to economic downturns.

Increased Suicide Risk

  • Research has shown that during periods of financial crisis, suicide rates tend to increase as individuals feel trapped with no way out of their economic distress (Richardson et al., 2017).
  • For men in particular, job loss and financial instability are linked to higher rates of suicide, as economic success is often tied to self-worth and identity.

Conclusion

The combination of economic coercion, sovereignty threats, diplomatic isolation, and rising costs of living has created a mental health crisis for many Canadians. The psychological effects of these challenges are far-reaching, affecting individuals, families, and entire communities.

To mitigate these effects, Canadians must take proactive steps to:

  • Strengthen economic self-sufficiency and financial resilience.
  • Prioritize mental health care through therapy, mindfulness, and stress-management techniques.
  • Engage in civic participation and political advocacy to ensure that government policies reflect national interests.
  • Foster community support networks to reduce isolation and share coping strategies.

While the challenges Canada faces are significant, resilience, solidarity, and mental health awareness can help individuals and communities navigate these turbulent times. Understanding the psychological impact of these threats is the first step in building long-term strategies for national and individual well-being.

Strategies for Canadians to Navigate Economic, Social, and Mental Health Challenges

In response to the economic and psychological strain caused by U.S. policies, proactive strategies are essential for protecting individual well-being, strengthening national resilience, and fostering collective action. Canadians can take the following steps to mitigate the economic, social, and mental health impacts of these ongoing challenges:

Strengthening Economic Resilience

Economic self-sufficiency and financial resilience are key to reducing vulnerability to trade disruptions, rising costs of living, and economic coercion. Individuals, communities, and policymakers can work together to build a more stable economic future by:

Diversifying Financial Strategies

  • Reduce reliance on U.S.-dependent industries by supporting local and independent businesses, especially in manufacturing, agriculture, and technology.
  • Reduce personal and household debt to increase financial security and minimize vulnerability to economic shocks.
  • Encourage financial literacy by investing in budgeting, personal savings, and long-term financial planning to counter economic unpredictability.
  • Explore alternative revenue streams, such as freelancing, cooperative business models, or side businesses, to enhance economic self-sufficiency.

Advocating for National Economic Policies

  • Support Canadian-made goods and services to strengthen local industries and reduce reliance on imports from the U.S..
  • Push for trade diversification by encouraging stronger economic ties with the European Union, Asia, and domestic markets.
  • Advocate for economic self-sufficiency policies that prioritize Canadian jobs, supply chain independence, and sustainable economic growth.
  • Encourage government investment in infrastructure and innovation to enhance domestic production and reduce dependency on foreign markets.

Prioritizing Mental Health and Community Support

Economic and political instability contribute to widespread mental health challenges, including anxiety, depression, and stress-related disorders. To combat these effects, Canadians can take steps to prioritize mental health care and foster strong community networks.

Seeking Professional Mental Health Support

  • Utilize therapy and counseling services to manage stress, anxiety, and financial-related emotional distress.
  • Engage in mindfulness practices such as meditation, yoga, or cognitive-behavioral techniques to maintain emotional balance.
  • Access community mental health resources that offer low-cost or free mental health services to individuals struggling with financial instability.

Engaging in Community Resilience Programs

  • Join local support groups, community networks, or mutual aid initiatives to reduce isolation and build collective problem-solving strategies.
  • Participate in neighborhood and civic organizations that focus on community self-sufficiency and grassroots economic resilience.
  • Encourage open discussions about economic stress and mental health to destigmatize financial hardships and promote supportive social connections.

Increasing Civic Engagement and Political Awareness

Economic and political resilience also depend on an informed and engaged public. By advocating for policies that protect national sovereignty and actively participating in democratic processes, Canadians can help shape a stronger national response to economic threats.

Supporting Policies that Enhance Canadian Sovereignty

  • Educate oneself on trade agreements, foreign policy, and economic reforms that impact Canada’s ability to operate independently from U.S. influence.
  • Support legislative efforts to strengthen Canadian industries and reduce foreign corporate influence over key sectors.
  • Push for diplomatic diversification by encouraging Canada to develop stronger ties with European, Asian, and South American partners.

Engaging in Advocacy Efforts

  • Write to elected officials to demand stronger economic protections, fair trade policies, and proactive measures against economic coercion.
  • Join grassroots political movements that promote worker protections, economic independence, and social justice.
  • Participate in town halls, policy discussions, and public forums to ensure that Canadian citizens’ voices are heard on trade and economic policies.

Conclusion

By taking proactive economic, social, and political steps, Canadians can build resilience against economic uncertainty and political threats while ensuring stronger mental health support systems. While the current challenges pose real risks, strategic action and collective efforts will enable Canada to navigate economic pressures, political intimidation, and mental health stressors more effectively.

A strong, self-sufficient, and engaged Canada is essential for weathering this period of economic and political volatility—and ensuring a more stable and independent future.

Wrap Up

In recent months, Canada has faced significant political and economic pressures from the United States under Donald Trump’s administration. These tactics include rhetoric suggesting Canada should become the “51st state,” economic coercion through high tariffs, trade disruptions, and a lack of strong support from traditional allies. The combination of political instability, financial uncertainty, and diplomatic pressure is leading to widespread anxiety,  and economic stress.

The economic and political pressures imposed by the U.S. are creating a mental health crisis in Canada, affecting individuals at both a psychological and financial level. However, by strengthening financial resilience, prioritizing mental health, and actively engaging in civic action, Canadians can mitigate the impact of economic coercion and safeguard their national identity and well-being.

A stronger, more self-sufficient Canada depends on the collective efforts of its citizens—through informed decision-making, advocacy, and psychological resilience. By recognizing the long-term effects of political and economic instability, Canadians can better prepare for and navigate an uncertain future while ensuring national and individual well-being.

 

References

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McEwen, B. S. (2007). Physiology and neurobiology of stress and adaptation: Central role of the brain. Physiological Reviews, 87(3), 873–904.

Richardson, T., Elliott, P., & Roberts, R. (2017). The relationship between personal unsecured debt and mental and physical health: A systematic review and meta-analysis. Clinical Psychology Review, 57, 131–146. 

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