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Economy

The 15-Minute City: An extraordinarily bad idea

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6 minute read

From the Frontier Centre for Public Policy

By Randal O’Toole

” the average resident of the New York urban area—the closest thing to a 15-minute city in the U.S. or Canada—can reach at least 21 times as many jobs in a 20-minute auto drive as in a 20-minute walk. The same will be true of other economic opportunities.  “

The latest urban planning fad to sweep across Canada is the 15-minute city, which proposes to redesign cities so that all urban residents live within an easy, 15-minute walk of schools, retailers, restaurants, entertainment, and other essentials of modern life. This is supposed to simultaneously reduce greenhouse gas emissions while it increases our quality of life.

Some think it is a conspiracy. Others insist it is not. Conspiracy or not, the only way to have true 15-minute cities would be to drastically change Canadian lifestyles.

Fifteen-minute cities mean a lot more people living in multifamily housing and fewer in single-family housing. It means most food shopping would be done in high-priced, limited-selection grocery stores. There is no way that Costcos or even large supermarkets can fit into 15-minute cities; to survive, these stores need a lot more customers than could live within a 15-minute walk from their front doors.

Most of the benefits claimed for 15-minute cities are wrong. Proponents claim they would be more affordable, but high-density, multi-story housing costs two to five times as much, per square foot, as single-family homes. Packing people into four- and five-story apartment buildings would require cutting average dwelling sizes at least in half to make them anywhere close to affordable.

Proponents also claim 15-minute cities would save energy and reduce greenhouse gases and other pollutants. But let’s be honest: people aren’t going to give up their cars or stop going to Costco.

Admittedly, the U.S. Department of Energy says that people living in high-density cities do drive a little less than people in low-density areas. But it also says that there is a lot more congestion in high-density cities. Since cars use more energy in slower traffic, high-density cities use more energy (and therefore emit more greenhouse gases) per capita than low-density areas.

Proponents also claim that 15-minute cities will be more equitable. Yet, before about 1890, most Canadian cities were 15-minute cities. Most people in these cities lived in crushing poverty and there were huge disparities between the rich and the poor, with only a small middle-class in between.

What changed these cities was the mass-produced automobile. The Model T Ford democratized mobility, allowing more people to escape the dense cities to find better housing, better jobs, access to lower-cost consumer goods, and a wider range of social and recreation opportunities.

The University of Minnesota Accessibility Observatory calculates that the average resident of the New York urban area—the closest thing to a 15-minute city in the U.S. or Canada—can reach at least 21 times as many jobs in a 20-minute auto drive as in a 20-minute walk. The same will be true of other economic opportunities. Eliminating the automobile, which is the goal of the 15-minute city, would eliminate those economic benefits.

We had this same debate 50-some years ago when urban skies were polluted with carbon monoxide, smog, and other toxic automobile emissions. Some people advocated policies that would force people to drive less. Others advocated new technologies that would reduce the air pollution coming from autos and trucks.

Today, total automotive air pollution has been reduced by about 90 percent. All this improvement came from cleaner cars: new cars today pollute only about 1 percent as much as cars made in 1970. None of this improvement came from anti-automobile policies, as Canadians drive far more miles today than they did 50 years ago.

If anything, policies aimed at reducing driving made pollution worse as one of those policies was to increase traffic congestion to get people out of their cars. Yet, as noted above, cars actually pollute more in congested traffic.

Anti-automobile policies today, including 15-minute cities, spending billions on rail transit lines that carry only a small percentage of urban travel, and converting general street lanes into exclusive bike lanes, are going to have the same effect.

People who care about the planet should demand policies that actually work and not ones that are based on urban planning fantasies and fads. Instead of attempting to drastically change Canadian lifestyles, that means making cars that are cleaner and more fuel-efficient so that the driving we do has a lower environmental impact. The 15-minute city may not be a conspiracy, but it is still an extraordinarily bad idea.

Randal O’Toole is a transportation policy analyst and author of Building 21 st Century Transit Systems for Canadian Cities, an upcoming report published by the Frontier Centre for Public Policy.

Watch Randal on Leaders on the Frontier here.

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Business

Canada Caves: Carney ditches digital services tax after criticism from Trump

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Canada caved to President Donald Trump demands by pulling its digital services tax hours before it was to go into effect on Monday.

Trump said Friday that he was ending all trade talks with Canada over the digital services tax, which he called a direct attack on the U.S. and American tech firms. The DST required foreign and domestic businesses to pay taxes on some revenue earned from engaging with online users in Canada.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” the president said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

By Sunday, Canada relented in an effort to resume trade talks with the U.S., it’s largest trading partner.

“To support those negotiations, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,” according to a statement from Canada’s Department of Finance.

Canada’s Department of Finance said that Prime Minister Mark Carney and Trump agreed to resume negotiations, aiming to reach a deal by July 21.

U.S. Commerce Secretary Howard Lutnick said Monday that the digital services tax would hurt the U.S.

“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” he wrote on X.

Earlier this month, the two nations seemed close to striking a deal.

Trump said he and Carney had different concepts for trade between the two neighboring countries during a meeting at the G7 Summit in Kananaskis, in the Canadian Rockies.

Asked what was holding up a trade deal between the two nations at that time, Trump said they had different concepts for what that would look like.

“It’s not so much holding up, I think we have different concepts, I have a tariff concept, Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

Shortly after taking office in January, Trump hit Canada and Mexico with 25% tariffs for allowing fentanyl and migrants to cross their borders into the U.S. Trump later applied those 25% tariffs only to goods that fall outside the free-trade agreement between the three nations, called the United States-Mexico-Canada Agreement.

Trump put a 10% tariff on non-USMCA compliant potash and energy products. A 50% tariff on aluminum and steel imports from all countries into the U.S. has been in effect since June 4. Trump also put a 25% tariff on all cars and trucks not built in the U.S.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports them. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Trump’s tariffs give U.S.-produced goods a price advantage over imported goods, generating revenue for the federal government.

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Business

Trump on Canada tariff deadline: ‘We can do whatever we want’

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President Donald Trump appears unconcerned about an upcoming tariff deal deadline after abruptly ending all trade talks with Canada as his bid to overhaul world trade continues.

Trump is nearing the end of a self-imposed 90-day deadline to strike deals with nearly every U.S. trading partner as he works to reorder global trade by giving America a competitive advantage through tariffs on foreign goods.

Trump now says that the deadline could be extended past July 9 or even accelerated.

“We can do whatever we want. We could extend it, we could make it shorter. I’d like to make it shorter,” Trump said Friday at the Oval Office. “I’d like to just send letters out to everyone ‘Congratulations, you’re paying 25%.'”

On April 2, Trump announced reciprocal tariffs on nearly every nation that trades with the U.S. Seven days later, he paused those higher tariff rates for 90 days to give his trade team time to cut deals with key trading partners. That 90-day deadline ends July 9 and thus far Trump has brought home two deals: A limited trade pact with the United Kingdom and a trade truce with China.

Commerce Secretary Howard Lutnick told Bloomberg that new deals are on the way, and those could serve as models for others. 

“We’re going to do top 10 deals, put them in the right category, and then these other countries will fit behind,” Lutnick said.

He said the U.S. was “close to the finish line” with India. Lutnick also said he had made an offer to the European Union. 

Trump’s decision to suspend trade talks with Canada with just days left before the deadline underscored the flexibility of the president’s trade deadline.

“These are very complex negotiations and we are going to continue them in the best interests of Canadians,” Candian Prime Minister Mark Carney said Friday while leaving his office, according to local reports.

Canada has invariably been one of the top two trading partners for the United States for years. In 2024, Canada was the top destination for U.S. exports and the third-largest source of U.S. imports. On the other side, Canada exported 75% of its goods to the United States and imported almost half of its goods from the United States.

U.S. total goods trade with Canada was an estimated $762.1 billion in 2024, according to the Office of the U.S. Trade Representative. U.S. goods exports to Canada in 2024 were $349.4 billion. U.S. imports from Canada in 2024 totaled $412.7 billion. The U.S. goods trade deficit with Canada was $63.3 billion in 2024.

Services trade with Canada, exports and imports, totaled an estimated $140.3 billion in 2023. Services exports were $86.0 billion, and services imports were $54.3 billion. The U.S. services trade surplus with Canada was $31.7 billion in 2023, according to the Office of the U.S. Trade Representative.

Shortly after taking office in January, Trump hit Canada and Mexico with 25% tariffs for allowing fentanyl and migrants to cross their borders into the U.S. Trump later applied those 25% tariffs only to goods that fall outside the free-trade agreement between the three nations, called the United States-Mexico-Canada Agreement.

Trump put a stop to the talks on Friday.

“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,” Trump wrote on Truth Social.

Trump said the digital services tax was a copy of a European Union proposal.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” the president said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

Earlier this month, the two nations seemed close to striking a deal.

Trump said he and Canada Prime Minister Mark Carney had different trade concepts between the two neighboring countries during a meeting at the G7 Summit in Kananaskis, in the Canadian Rockies. 

Asked what was holding up a trade deal between the two nations at that time, Trump said they had different concepts for what that would look like.

“It’s not so much holding up, I think we have different concepts, I have a tariff concept, Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

Trump put a 10% tariff on non-USMCA compliant potash and energy products. A 50% tariff on aluminum and steel imports from all countries into the U.S. has been in effect since June 4. Trump also put a 25% tariff on all cars and trucks not built in the U.S.

The tariffs have frustrated Canadian leaders and residents. Tensions between the two neighboring countries have been high. And cities on both sides of the U.S.-Canada border have been affected.

Trump has repeatedly suggested that Canada join the U.S. as its 51st state. He previously called former Canadian Prime Minister Justin Trudeau “governor” regularly.

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