Canada faces a potential 25 percent tariff threat from the U.S. under Donald Trump's administration. Prime Minister Justin Trudeau vows to counter these tariffs, while Conservative leader Pierre Poilievre questions the government's ability to implement its plans without a functioning Parliament. Meanwhile, the Liberal leadership race continues to unfold with more endorsements for Mark Carney. Former Finance Minister Chrystia Freeland campaigns actively despite past disagreements with Trudeau on economic policies.
Good Wednesday morning. In today's Politics This Morning: Bloc MPs begin their two-day caucus meeting in Laval, Quebec. NDP leader holds a strategy planning session with party members. The housing minister reveals a policy to tackle homelessness. It's the third day of DONALD TRUMP's return to the Oval Office, and Canada is already in fight mode, gearing up to face the threat of 25 per cent tariffs that may come in February.
Prime Minister JUSTIN TRUDEAU said in a press conference yesterday that the feds' plan is to dodge the tariffs in the first place. If that fails, all options are on the table, including cutting off Canadian electricity and oil to the U.S. But not everyone is a fan of this move. Bloc Québécois Leader YVES-FRANÇOIS BLANCHET has joined Alberta Premier DANIELLE SMITH in suggesting it would be a bad idea to stop the supply of our oil and energy to the U.S. It could backfire in the future when Canada has to negotiate exports with America again, he said. Conservative Leader PIERRE POLIEVRE has gone further and questioned how any of these ideas would be implemented without a functioning Parliament. Last December, the government announced a $1.3-billion border plan to address Trump's concerns that Canada is letting in drugs and criminals illegally into America. In a press release yesterday, Poilievre claimed the feds won't have the cash needed to fund the border security work unless MPs and Senators approve it in the Parliament, which is currently prorogued until March 24. He also said the retaliatory tariffs would require “urgent parliamentary consideration.” Conservative Leader Pierre Poilievre. The Hill Times photograph by Sam Garcia But is that really the case? Politics This Morning did some digging and asking around. In 2018, when Trump similarly levied tariffs on Canadian steel and aluminium, the federal government carried out public consultations and launched counter tariffs without the need for them to be voted on by Parliament. As per Canada’s first and former parliamentary budget officer (PBO), KEVIN PAGE, Parliament would ideally be involved in discussions on tariffs and approval of spending authorities related to a border plan. But the prime minister and cabinet have the authority on international affairs to impose tariffs, he said. On the question of funding, Page believed the government may be able to use its existing unspent cash in this fiscal year for securing the borders. However, if a major trade war breaks out in the coming months, political leaders may have to consider delaying the general election until the fall, as the country will need a functioning Parliament in the difficult times, according to Page. YVES GIROUX, the current PBO, had a similar view. He suggested that any funding requirements for the 2024-25 fiscal year could be sourced from the government’s existing supply allocations, provided there is sufficient money available. Any future requirements for 2025-26 onward would need to be approved by Parliament, through the main or supplementary estimates. The government, he said, could implement retaliatory tariffs by passing an order, like it did when introducing surtax on Chinese electric vehicles last year. A spokesperson for Public Safety Minister DAVID MCGUINTY additionally clarified that the border plan contains a series of measures that do not require parliamentary approval. Public Safety Minister David McGuinty. The Hill Times photograph by Andrew Meade “For instance, just in the last couple of weeks, we put an end to flagpoling, announced the first Canadian land preclearance operation in the U.S., and held a border security exercise with Ontario,” the spokesperson said, citing some examples of the tasks undertaken. Meanwhile, the Liberal leadership race is still ongoing, and more ministers and MPs have revealed their pick. Former housing minister SEAN FRASER, current Indigenous Services Minister PATTY HAJDU, Crown-Indigenous Relations Minister GARY ANANDASANGAREE, and Environment Minister STEVEN GUILBEAULT are the latest to endorse former Bank of Canada governor MARK CARNEY. Long-shot candidate MP CHANDRA ARYA submitted his application to the Leadership Committee of the Liberal Party yesterday, which means he is definitely still in the contest, but has had no MPs supporting him so far. Former deputy prime minister and finance minister CHRYSTIA FREELAND is actively campaigning, and recently said that she and Trudeau had disagreements over the government’s handling of the economy. In 2024’s Fall Economic Statement (FES), the fiscal deficit for 2023-24 shot up to $61.9-billion— much higher than $40.1-billion expected earlier. Freeland resigned on the morning of that update, and today Giroux is publishing his assessment of the FES that may not exactly help Freeland in her campaign. PBO highlights issues in government’s economic statement At 9 a.m
CANADA TRUMP TARIFFS JUSTIN TRUDEAU PIERRE POLIEVRE LIBERAL LEADERSHIP RACE MARK CARNEY CHRYSTIA FREELAND
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