Roundup: Preparing for another tariff climbdown

Prime minister Mark Carney held a (virtual) Cabinet meeting yesterday, followed by a virtual meeting with the premiers, and so far, the signs aren’t terribly encouraging. It was ostensibly about an update on trade talks with the US, given that the deadline passed and we’re not only no closer to any kind of resolution, but Trump raised the tariffs they are charging on non-New NAFTA items (which does nevertheless effectively mean we’re still one of the lowest tariff-rate countries overall), if you ignore all of the other sectoral tariffs that are having the biggest impact. And the premiers have also started to drift in their positions, whether it’s Doug Ford demanding more retaliation (even though he immediately backed down on his electricity export retaliation), or Danielle Smith and Scott Moe preferring to lick fascist boots instead.

Nevertheless, the tone coming out of Carney and the Cabinet is increasingly one where they are openly laying the groundwork for reducing or removing retaliatory tariffs or other measures, because really, appeasing Trump is clearly the way to go. Look at what pulling back on the Digital Services Tax got us. The question then becomes what happens to the increasingly large fiscal hole that eliminating these counter-tariffs will do to the balance sheet, because they booked a bunch of revenues from them, while they’re already promising deep cuts to government spending.

Just keep making concessions. That'll clearly get us a favourable deal.

Dale Smith (@journodale.bsky.social) 2025-08-06T21:26:09.762Z

Meanwhile, the Conservatives have decided to go full-bore on the notion that Carney has broken his signature campaign promise because he has not only failed to reach a deal with Trump, but that tariffs have increased since then. Of course, this is premised on the completely false notion that Trump is a rational actor, but pretty much the entire Conservative caucus was tweeting variations of this very thing all day, because absolutely everything they do has to be about social media posts. Even more eye-rolling was Roman Baber lying about what the president of Mexico said about Anand and Champagne’s visit (her comments were that we don’t need a bilateral trade deal because the New NAFTA is still in effect, and even if it wasn’t, we’re both signatories to the CPTPP), because this is the state of the Conservative Party today.

Ukraine Dispatch

Russian strikes killed two people and wounded at least ten in Zaporizhzhia, while shelling killed three and injured at least four in Nikopol. Russians also hit a key gas interconnector, which Ukraine says was about trying to undermine their preparations for winter (when Russia always attacks power supplies).

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Roundup: Past the gushing, the premiers are up to their old tricks

If you only listened to the effusive praise from the premiers after their meeting over the past three days in Muskoka, you might miss the strong scent of absolute bullshit wafting from them. Yes, there was plenty more gushing about prime minister Mark Carney, and his meeting with them on Tuesday about the current trade negotiations with the Americans, and his engaging with China about the current trade spat with them (where apparently a number of premiers think we should capitulate to China as well), but my gods, the rest of their statements? More of the same from our premiers.

Take bail reform. Doug Ford insisted that they would be “holding him accountable” on his promise to institute more bail reforms in the fall, but problem with bail is not the Criminal Code. The problem with bail is that the provinces have been under-resourcing their justice systems for decades. There aren’t enough court houses or staff for them, the provincial remand facilities are overflowing, and they don’t hire enough provincial court judges or Crown attorneys, nor are some provinces properly training their justices of the peace, who usually make bail determinations. That is all the provinces’ faults, but they continue to falsely blame the federal government because it’s easier than the premiers doing their jobs.

Or healthcare. Ford whinged that the Trudeau government “shortchanged them” and they want more “flexibility.” The same Doug Ford that took $4 billion in pandemic supports from the federal government and just applied it to his bottom line to reduce the provincial deficit. And you can bet that the premiers are sore that Trudeau made the last round of transfers conditional on provinces submitting “action plans” so that they can be judged to see whether the funds are actually going to healthcare spending in those priority areas rather than just being spent elsewhere, as so many billions of past healthcare dollars have been. So of course, they want Carney to try and reverse that. They’re not happy that they have been subjected to strings on those transfers.

"Ford said the previous federal government shortchanged the provinces, and that Ontario needs more money to train and hire doctors and nurses."DOUG FORD PUT $4 BILLION OF PANDEMIC FUNDS ON THE PROVINCE'S BOTTOM LINE TO REDUCE THE DEFICIT.FOR FUCK SAKES!

Dale Smith (@journodale.bsky.social) 2025-07-24T03:27:14.634Z

Even more alarming is the fact that Ford, on the advice of Danielle Smith, wants to go around the federal government and issue their own work permits to asylum seekers in the province because the federal government takes too long. That’s a pretty significant overreach, which is a very bad sign. And you can bet that none of the premiers will be held to account for any of this, because that’s how we roll in this country.

Effin' Birds (@effinbirds.com) 2025-07-23T13:25:09.670Z

Ukraine Dispatch

In spite of “peace talks” in Istanbul, there were more drone strikes traded from both sides—Russians hit residential and historic sites in Odesa, while Ukraine hit an oil storage depot near the Black Sea. More Ukrainian POWs were also returned yesterday. Facing protests for the changes to the anti-corruption agencies, president Zelenskyy now says he’ll introduce new legislation to safeguard their independence (but it remains to be seen what that legislation will actually say). European security reports show China covertly shipped drone parts to Russia using mislabelled containers to avoid sanctions.

https://twitter.com/ukraine_ua/status/1947597862574952514

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Roundup: Lowering expectations even further

Prime minister Mark Carney spent the morning with the premiers in Muskoka as part of their meeting, and proceeded to lower expectations even further than they already are. The message of the day was that he’s only going to take the “best deal” in negotiations with the US, and that matters more than the August 1st deadline, which is already beyond the “deadline” that was agreed to in Kananaskis, and so long as talks are ongoing, retaliation measures continue to also be pushed back so that American bullying can continue unabated. But the kind of deal he wants isn’t going to be available, because this is Trump, and we’re just not going to get a deal that “preserves, reinforces and stabilises” the trade relationship, because Trump does not want that, nor do we want to keep tying ourselves to a failing autocratic regime whose economy is increasingly defined by the chaos of its leader.

We also learned that he stayed at Doug Ford’s cottage the night before, and that they stayed up talking past midnight, and Ford just gushed like a schoolgirl about Carney’s business background, and said that he would hand the keys of a business over to the prime minister (and said “business” about fifty more times), all of which was a little bit unseemly. We know that Ford continues to fancy himself a “businessman” because he inherited part of his father’s label business, but this constant fawning over anyone with a business background is a little bit unbecoming, particularly if you pay any bit of attention to what happens.

Meanwhile, Ford also signed an MOU with Danielle Smith and Scott Moe about building pipelines to Ontario and James Bay (which is never going to happen because it’s too shallow for tanker traffic), amidst the usual nonsense about federal environmental laws that they are trying to be rid of. There are no proponents for these pipelines, because there is no economic case for them. And if Carney is true to his word and says there’s no PONIs without Indigenous buy-in or consent, well, the pipeline Smith wants to the northwest coast of BC won’t happen because the First Nations in the area do not want one. Nevertheless, I think Andrew Leach is right in that they’re stacking up a wish list they’ll never meet in order to keep blaming the federal government, because that’s what they do best.

Ukraine Dispatch

Ukraine lost one of their French Mirage fighters due to equipment failure, but the pilot was able to safely eject. There were protests in Kyiv because president Zelenskyy signed a law that rolled back the independence of two anti-corruption bodies and placed them under executive control, which was seen largely as his first major unforced error, and give ammunition to Putin supporters.

https://twitter.com/ukraine_world/status/1947576960110014850

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Roundup: A committee prepares to express its dismay

The Commons’ transport committee will be meeting sometime this summer over the BC Ferries decision to buy new electric ferries from China and not Canada, never mind that no Canadian company bid on the project (likely because the major shipyards are already full-up on the naval and Coast Guard orders that will keep them occupied for years to come, which was the whole point of the National Shipbuilding Strategy). Of course, because this decision is actually in provincial jurisdiction, as transport minister Chrystia Freeland said time and again in Question Period before the House rose for the summer, the Conservatives on the committee needed to find a different angle of attack.

Enter the Canada Infrastructure Bank. It provided a loan to BC Ferries before the deal was signed, that covers both a portion of the capital costs, as well as electrification infrastructure for the ships themselves. Never mind that the Bank operates at arm’s length from government—the fact that it still reports to Parliament via a minister, Gregor Robertson in this case, means that Robertson and Freeland are going to be summoned to explain themselves, even though they have no hand in these decisions, no should they. The federal funds that go to BC Ferries is for operations and not capital costs, btu the Conservatives seemed to think that this should somehow be weaponised as well. (Oh, and BC premier David Eby said that he wants the committee to look at how unfairly the federal funding is allocated between BC and the Atlantic provinces, never mind that the Atlantic ferries are mostly interprovincial, which makes them a federal responsibility as opposed to BC’s, which is solely within the province’s jurisdiction).

So, what exactly do we expect to happen? I can pretty much guarantee that every party, the Liberals included, will spend the meetings expressing their dismay at BC Ferries’ decision, even though no Canadian firm bid on this contract. The ministers will express dismay, the MPs on the committee will all preen for the cameras, each expressing their dismay and sometimes outrage that these jobs are going to China and not Canada (never mind that no Canadian firm bid on this contract). It will be one big circle-jerk of dismay, while the CEO of BC Ferries will probably appear to say that the Infrastructure Bank loan is a loan that needs to be repaid, and that no Canadian firms bid on this contract. And everything will be done in service of clips for social media, because that’s all Parliament is any more.

Ukraine Dispatch

There is at least one dead and over 71 wounded in drone attacks on Kharkiv, as well as a death following an attack on Odesa and more injuries following a drone strike on Zaporizhzhia. Many of those attacks continued to be aimed at military recruitment offices in order to disrupt intake of new fighters. Trump says he’ll start sending more weapons to Ukraine, but who knows how long it’ll last this time.

https://twitter.com/ukraine_world/status/1942141632620495134

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Roundup: Didn’t quite meet the Canada Day goals

We have just passed Canada Day, and did Mark Carney live up to all of the promises he made that were supposed to happen by then? Erm, not really. He set some pretty lofty goals for himself, and some of those promises he started to backpedal on the closer the time got, like on internal trade barriers. First it was eliminating them all by Canada Day. And then it was federal barriers. And even then, while the legislation has passed, it’s a bit of a mess. Why? Because the approaches to lifting those barriers is a patchwork of mutual recognition agreements between some provinces and not others, and that could in turn be new barriers in and of themselves, because there aren’t any consistent approaches.

Meanwhile, his bill to cut taxes didn’t pass, but it’ll still take effect on July 1st because of the Ways and Means motion that got passed. He got the ball rolling on the ReArm Europe programme, but it is not a done deal. He also said that he wanted all departments to undertake reviews to cut “red tape” within sixty days, but when exactly that kicks in was a bit ambiguous, not that I think 60 days is an adequate enough time to do a review of all of a department’s regulations to find inefficient rules. They’ve been doing that for years, so it’s not like there’s a lot of low-hanging fruit. I guess we’ll see what they turn up before the fall.

https://twitter.com/CanadianUK/status/1940419524375072985

https://twitter.com/RoyalFamily/status/1940002704295596284

It is nice to see Prince Edward make an appearance, and say a few words, and to bring greetings from Their Majesties with a promise of a longer royal tour to come."I speak for all of my family when I say that we take immense pride in Canada and Canadians." #MapleCrown

Dale Smith (@journodale.bsky.social) 2025-07-01T16:38:04.203Z

In case you missed it:

My weekend column points out that Danielle Smith’s attack on immigrants in her “Alberta Next” panel telegraph how desperate she is to find new scapegoats.

My Loonie Politics Quick Take looks at that NATO “five percent” goal, which isn’t five percent, and the conversations we should be having instead.

My column shows how Bill C-5 is the latest in a series of ways in which our Parliament has been slowly hollowing itself out, becoming a Potemkin village.

Ukraine Dispatch

The US is delaying or halting shipments of promised weapons to Ukraine, just as Russia has been ramping up attacks, because this is who Trump is. Meanwhile, Russia appears to be ramping up its offensives in Donetsk and Sumy.

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Roundup: A few amendments, but very telling ones

It seems that Bill C-5 did not emerge from committee unscathed, as the opposition forced a number of amendments to the bill through, most of them creating an added list of laws that the government cannot opt itself out of using the giant Henry VIII clause that is the second half of said bill. The issue here? That aside from the Indian Act being one of those laws, the remainder are mostly done for the theatre of the Conservatives (and Bloc to a lesser extent) putting on a show about trying to keep said Henry VIII clause being used in a corrupt manner. To that end, the laws protected from opt-outs include:

  • Access to Information Act,
  • Lobbying Act,
  • Canada Elections Act,
  • Criminal Code,
  • Conflict of Interest Act,
  • Investment Canada Act,
  • Foreign Influence Transparency and Accountability Act,
  • Extractive Sector Transparency Measures Act,
  • Railway Safety Act,
  • Trade Unions Act,
  • Explosives Act,
  • Hazardous Products Act,
  • Indian Act,
  • Auditor General Act, or
  • Official Languages Act

Do you notice what’s missing? Any kind of environmental laws, which the Conservatives continue to demand be repealed, or any kind of UNDRIP legislation, which would ensure free, prior and informed consent from Indigenous people when it comes to these projects.

The government says they are considering the amendments and whether to support their adoption or not (but given that every opposition party has lined up behind them, they may not have a choice), but the fact remains that they have refused adequate consultation with Indigenous people in developing and passing this legislation (they could barely be arsed to hear from one Indigenous witness at committee, let along several rights-holders), or that they are damaging the trust the government spent the past decade trying to rebuild. Just amateur galaxy-brained antics that you would think a government that is ten years into their time in office would actually have learned a lesson or two by this point.

Meanwhile, you have some Indigenous voices calling on the Governor General to delay or to deny royal assent for Bill C-5, which is not going to happen. If it did, it would cause a constitutional crisis, and I can’t believe we need to keep saying this every time someone makes the suggestion because they don’t understand how Responsible Government works. This is a political problem, and it demands a political solution, not one where you pull out the constitutional fire extinguisher and try to wield it. That’s not how this works, and people need to both stop suggesting it, and journalists need to stop taking this kind of talk seriously. Just stop it.

Ukraine Dispatch

President Zelenskyy says that the increasing attacks demonstrate why more pressure needs to be applied to Russia to force a ceasefire. There was another POW swap yesterday, but no word on how many were exchanged on either side.

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Roundup: Carney making his choice with Modi

Spokespersons for the Sikh Federation Canada and the World Sikh Organisation of Canada were on the Hill yesterday to call on prime minister Mark Carney to rescind his invitation to Narendra Modi to attend the G7 summit, and are not ruling out actions such as barring Liberal MPs from visiting Sikh temples as a protest. They warned that more than a dozen Canadian Sikhs are under active threat from India,  and we also learned in the media yesterday that a suspected Indian government agent had Jagmeet Singh under surveillance, which prompted close RCMP protection eighteen months ago.

Oh, but Carney says, we got assurances about cooperating on a law enforcement dialogue, and yes, RCMP Commissioner Mike Duheme does say that Indian officials are now being cooperative on the investigation into the killing of Hardeep Singh Nijjar where they weren’t before, but again, how much longer is this going to continue until it’s no longer convenient and they start making up a bunch of bullshit for their newspapers again like they did with the supposed cocaine found on Trudeau’s plane (which right-wing newspapers in this Canada breathlessly repeated while the journalists who were actually on the plane repeatedly said that this never happened and that this was a bullshit information operation).

Yes, India is an important economy at a time when we can no longer rely on the Americans, but can we rely on India either given Modi’s increasing authoritarian tendencies, and his violation of human rights for minorities? Those Sikh spokespersons made the salient point about how Carney is sending the message that some lives are worth more than others, and that if there’s economic benefit, then we can turn a blind eye to human rights abuses and the fact that they almost certainly contracted an extrajudicial killing on Canadian soil. That should matter, and we should send a message that it does matter. But we’re not getting that from Carney, and even more to the point, the Liberals have had some very effective Sikh organisers in the party (which is why certain MPs were in Trudeau’s Cabinet when they were poor performers) and it would seem odd to waste that goodwill when you want to try and win a majority in the next election. I’m just not seeing a lot of principle or smart politics here.

Ukraine Dispatch

Ukrainian forces are slowly pushing back the Russian incursion in Sumy region. Ukrainian military officials say that the number of Russian soldiers killed or wounded in the conflict is now over one million, as the war is now in its third year. There was another exchange of sick and wounded prisoners yesterday. President Zelenskyy will be attending the G7 in Kananaskis next week.

https://twitter.com/DefenceU/status/1933028255767941303

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Roundup: The price of going around consultations

As prime minister Mark Carney gets set to ram his major project legislation through Parliament—Henry VIII clause and all—a couple of philosophical questions are popping up about the nature of what it is they’re doing to speed through these approvals. Doug Ford is trying to do it by essentially creating lawless zones, whereas Carney is giving himself the power to override other laws through regulation alone, which is ripe for abuse and which the Liberals would be screaming bloody murder about if they were in opposition. (The Conservatives, incidentally, are not up in arms about this use of a Henry VIII clause). The thing is, though, these laws and regulations exist for a reason—they’re not there just to thwart investment or development (in spite of what the Conservatives might tell themselves), and you’re asking for trouble if you go around it.

Part of that trouble is Indigenous consultation, and what they seem to believe it entails. It’s not just a meeting where you sit down and go “Here’s what we want to do on your lands.” It’s way more complicated, especially as you have some particular First Nations that have been burned in the past by other developers who promised them all kinds of benefits for that development and then reneged on their agreements (often leaving an environmental catastrophe in their wakes that they won’t pay for, leaving these First Nations off even worse). And they are already talking about litigation if their rights are violated, and those rights include free, prior and informed consent. This is a big deal, and we’re not sure that either Carney or Ford have actually thought this through. Things take time—especially within First Nations. Carney may be in for an unpleasant surprise about his timelines.

[Mallory Archer voice]: Do you want litigation? Because that's how you get litigation.

Dale Smith (@journodale.bsky.social) 2025-06-10T04:18:21.071Z

Meanwhile, oil prices have crashed to rock-bottom prices, meaning it will be even more unlikely that we’ll see companies willing to invest in new pipeline infrastructure, even if the Carney government thinks they can ram projects through in a two-year window (which, again, I remain dubious about). Danielle Smith is trying to entice a proponent for some sort of pipeline, but again, money talks. Those rock-bottom prices are also going to hit Alberta’s government hard, because they budgeted for much higher royalties, and that in turn will make Smith panicky and try to pick even more fights, all because she refuses to implement a sales tax that would avoid being dependent on oil revenues above a certain level to balance the books.

Ukraine Dispatch

It was another night of heavy drone attacks, with the hardest-hit area being Kharkiv, killing three people and a total of 64 wounded across the country. Ukraine says that they struck a large gunpower factory in Russia. Another prisoner swap was held yesterday, but it was less prisoners than 1212 bodies.

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Roundup: Back-channel tariff talks?

Ever since the latest round of steel and aluminium tariffs went into place, there have been questions as to when and how Canada will respond, and earlier in the week, prime minister Mark Carney counselled patience and that there were “intensive negotiations” happening, but retaliatory measures were also being prepared. We found out yesterday that Carney and Trump have been having back-channel conversations on the subject, so retaliation while this is happening may be counter-productive. But you also have industry worrying that the longer this goes without retaliation, the more they become vulnerable to other things like steel imports from other countries being diverted to Canada, which could make their situation even worse.

That being said, we may not be able to eliminate all tariffs, and some level could remain because Trump does love tariffs, and has a completely wrong-headed notion about them because of the people he has been surrounding himself with. Never mind that our auto sector can’t survive with tariffs, or that the Americans will simply pay through the nose for aluminium that they can’t smelt themselves.

Meanwhile, the Star has a really good five-point explainer about the counter-tariffs, and why the Conservatives’ claims that they were “secretly removed” is false, but rather a certain number of counter-tariffs were suspended for six months to give Canadian companies time to adjust supply chains, but there are still plenty of counter-tariffs in place.

Ukraine Dispatch

There was another missile and drone attack overnight which hit Kyiv, has killed at least four people.

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Roundup: Ontario MPPs get a raise

I don’t often write about Ontario politics, but I did want to make a couple of remarks on the fact that Doug Ford pushed through both pay raises for MPPs, as well as a restoration of their pensions, and this actually a Good Thing. MPPs have had their salaries frozen since 2009, when Dalton McGuinty froze them in response to the global financial crisis (which is always one of those dumb populist moves that astroturf groups like the so-called “Canadian Taxpayers Federation” demand, and it always ends up bad). Ford’s legislation will peg MPP salaries at 75 percent of those of MPs, who already have their own salaries adjusted automatically per a particular formula, and it pegs itself to something like judges’ salaries, all in an attempt to depoliticise the issue (and has largely been successful).

The thing about salaries for elected officials is that you want them to be high enough to discourage them from either freelancing on the job, or being susceptible to financial inducements (aka bribery) by keeping them at a reasonably comfortable level (without being obviously lavish or ostentatious). And frankly, the fact that anyone who is in a profession, like a doctor or lawyer, needing to take a pay cut to get into elected politics is usually a bad sign, because it discourages them from running or contributing in a meaningful way. And as for pensions, which Mike Harris killed in more populist excesses, it again helps to keep MPPs from pursuing other remuneration given the low salaries they’re already accepting, when they’re not earning pensionable income from their previous employers. Over time, there have been complaints that certain MPPs wouldn’t retire because they couldn’t afford to, and there was recently one story about a former Toronto MPP who wound up sleeping in a shelter after a financial collapse from a divorce. This was pretty sad indictment of how petty Ontario’s legislature had become on these questions.

This having been said, I’m still dubious about Ford’s motives, given that he has stuffed his Cabinet with MPPs in order to give them raises while going on about how hard they work. This feels a little bit like spoils of war as the province’s books get in worse and worse shape, but again, this is still the right thing to do. I know the books are a mess, and hospitals are crumbling, and they’re dismantling post-secondary education, but not giving these raises doesn’t fix any of that. Let’s hope that we’re not going to witness a bunch more hand-wringing about how nest-feathering, otherwise I can see the dumb populism making things even worse, as they force MPPs to start competing over who does sackcloth and ashes best.

Effin' Birds (@effinbirds.com) 2025-05-29T21:27:21.302Z

Ukraine Dispatch

President Zelenskyy says that Russia is engaging in yet another deception by not handing over its peace settlement proposal ahead of their planned talks.

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