In Part 2 of this candid global conversation, Karl Tabbakh returns to The Dwayne Kerrigan Podcast to pull back the curtain on the economic uncertainty that’s gripping both Canada and the U.S.—and what business leaders need to do about it.
Dwayne and Karl dissect the real cost of tariffs, the psychological divide between the “haves” and “have nots,” and what a future recession could mean for Canadian competitiveness. They challenge leaders to rethink productivity, wealth distribution, and their own growth mindset in a time of instability.
From political coalitions to personal responsibility, Karl doesn’t hold back. If you’re in business today, this episode is your compass in the chaos.
Timestamps
[00:01:00] – The danger of coalitions and the question of democratic representation
[00:04:30] – Program creation vs. program funding: Canada’s economic blind spot
[00:08:30] – Do we have the GDP to fund the lifestyle we promise?
[00:10:00] – Why Canada’s mindset around growth is dangerously passive
[00:13:30] – Who really pays the tariffs—and why they’re hidden taxes
[00:17:30] – Are tariffs a strategy or political theatre? Dissecting Trump’s leverage
[00:24:00] – The “Somewheres” vs. “Nowheres”: Stephen Harper’s cultural divide explained
[00:27:00] – The information echo chamber: Why we don’t see disruption coming
[00:29:00] – Education, taxation, and why we must fix the divide
[00:36:00] – Capitalism’s existential threat: What happens when the system loses balance
[00:43:30] – CEO pay, productivity, and compensation in a modern economy
[00:48:00] – Catching a falling knife: Should you invest in uncertain times?
[00:52:00] – When clarity returns, capital will too: Preparing for the rebound
[00:57:00] – The world is better than you think—but you have to choose that lens
[00:59:00] – Final message: Educate yourself. Lead with purpose. Elevate others.
About Karl Tabbakh
Karl Tabbakh is a lawyer, a business leader and a strategic advisor with over 20 years of international business experience. Karl’s expertise is sought after to advise corporations, directors and business executives on a range of strategic issues and transactions both domestically and globally. He is a partner at McCarthy Tétrault LLP with a focus on M&A and private equity and serves on the firm’s Senior Leadership Team as National Leader, Markets and International Business. He was appointed by the Government of Canada as Chairman of Invest in Canada, Canada’s agency responsible for promoting, attracting and facilitating global foreign direct investments into Canada. He previously served as Chair of the Canadian Chamber of Commerce and was on the Board of directors of the Canada Arab Business Council. Karl is a regular speaker on matters of governance, global investment and mergers and acquisitions. In addition to his career in Canada, Karl spent eight years in the Middle East and four years in London, UK, where he developed a solid international network and gained an understanding of international business and investments. An active community leader, Karl supports and leverages his network to benefit many non-profit and local community service organizations, including as member of the Centraide/United Way campaign. Born in Syria, Karl immigrated with his parents to Canada at age 10. He holds an LLB from Osgoode Hall Law School in Toronto, a BCL from the Université de Montréal and a B.Comm from Université Laval in Québec City. Karl is fluent in French, English, and Arabic.
Notable Quotes
“Imposing a tariff isn’t tax revenue. It’s a tax on your people. And I don’t think Canadians can bear more taxation.” — Karl Tabbakh
“Business leaders now need a new set of skills they didn’t think they’d need. Understanding geopolitics is no longer optional.” — Karl Tabbakh
“We’re not in the good old days—but we are in the best time in history. The challenge is seeing it through the noise.” — Karl Tabbakh
“Growth lives in uncertainty. As business leaders, we need to stop looking for safety and start preparing for opportunity.” — Dwayne Kerrigan
“You can’t catch a falling knife. But you can be ready for when it hits the floor.” — Karl Tabbakh
Key Takeaways & Resources
1. Tariffs Are Hidden Taxes on the People
Don’t be fooled—tariffs may sound like strategy, but they land hardest on end users. Inflationary effects and economic drag are real.
2. Program Spending Without Productivity Is a Dangerous Illusion
Canada must generate more wealth before it promises more social services. Creating programs is easy. Funding them is the hard part.
3. The Somewhere vs. Nowhere Divide Is Widening
Karl shares Stephen Harper’s “Two Canadas” concept. Global elites share more in common with each other than with their neighbors. That gap threatens unity and trust.
4. Business Leaders Must Think Politically—Now
Today’s leaders need to track geopolitics, elections, and economic policy the way they track revenue and operations. Your business is no longer immune.
5. Recession Risks Are Real—But So Is Opportunity
Capital is sitting on the sidelines. Prepare now with strong balance sheets, smart partnerships, and scenario planning. Be ready to move when clarity returns.
6. We’re Living in the Best Time in History—Despite the Headlines
Perspective is everything. Health, connectivity, longevity, and access to knowledge have never been better. But fear sells more than facts.
Connect with Dwayne Kerrigan
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Disclaimer The views, information, or opinions expressed by guests during The Dwayne Kerrigan Podcast are solely those of the individuals involved and do not necessarily represent those of Dwayne Kerrigan and his affiliates. Dwayne Kerrigan or The Dwayne Kerrigan Podcast is not responsible for and does not verify the accuracy of any of the information contained in the podcast series. The primary purpose of this podcast is to educate and inform. Listeners are advised to consult with a qualified professional or specialist before making any decisions based on the content of this podcast.
