Roundup: Tariffs are likely biting worse than claimed

You may have heard time and again that some 85 percent of goods traded with the US are covered under the New NAFTA and are not exposed to the new 35 percent tariffs, but that number could actually be misleading (and variable depending on who’s talking). In actual fact, that 85 percent figure is trade that is eligible to be compliant with New NAFTA rules, but a lot of it actually isn’t, because a great deal of that trade was simply done without the compliance with the New NAFTA rules because it was easier for many businesses just to pay the old tariff rates because there are significant costs to be compliant with the New NAFTA rules. That calculation has changed now with the Trump tariffs, and a lot of businesses are scrambling to get their compliance certification, but for many small businesses, it’s incredibly hard to do because they don’t have the staff or resources to do so. This means that the tariffs could be biting harder than some people are saying.

Meanwhile, media outlets like the CBC have been trying to get an answer from prime minister Mark Carney or his office about where he stands on the 2030 climate targets, and lo, they cannot get one. Which is not great considering how much Carney professed to be trying to get Canada and the world taking climate change seriously. And in the time since, he’s eliminated the consumer carbon levy (which was working to reduce emissions), and has given himself permission to violate all kinds of other environmental laws through the giant Henry VIII clause in Bill C-5, so it’s not exactly sending a signal that he’s too interested in that 2030 target, even though it was already going to more effort to achieve it than the Trudeau government was making. It’s not great, considering that we’re still living in a climate emergency, regardless of the tariff situation.

Ukraine Dispatch

Russian bomb strikes in Zaporizhzhia have injured at least twelve. Three people swimming in a restricted area off the coast of Odesa were killed by an explosive object, likely an unexploded mine (which is why the area is off-limits). Unsurprisingly, president Zelenskyy has rejected any kind of “land swap” deal made without the involvement or consent of Ukraine.

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Roundup: Details on military pay raises

Prime minister Mark Carney was in Trenton yesterday to meet with members of the military, and then announced the specifics on the previously promised raises. They’re concentrated at the lower ranks, with a 20 percent boost to recruits, and the levels of increases decrease the higher in rank one gets, owing to the fact that they already have higher salaries. There are other bonuses being enriched, including for specific trades that they are most in need of, though as The Logic reported earlier this year, signing bonuses in those needed trades hasn’t really worked so far. Maybe with higher bonuses? Of course, the money doesn’t address some of the other problems, like the moving across the country every couple of years, which creates problems with retention, but we’ll see if those kinds of internal reforms are in the works.

The other stuff also makes sense: bonuses for being relocated again and again, more money for those who have had to deal with environmental stress–bad weather such as on ship during storms or arctic. My fave, other than more $ for everyone, is essentially combat pay for domestic ops.

Steve Saideman (@smsaideman.bsky.social) 2025-08-08T18:32:47.488Z

Another notable aspect: extra pay for those becoming instructors at various training positions. I am pretty sure this is the first time this has been incentivized. Before, I am pretty sure the regiments were sending their worst just as they did with recruiting. Not great for recruitment but

Steve Saideman (@smsaideman.bsky.social) 2025-08-08T18:43:53.849Z

that has changed as well.Some of these changes are wildly overdue. Others are possible in a friendlier fiscal environment, which it is now for defence and nothing else.and ….

Steve Saideman (@smsaideman.bsky.social) 2025-08-08T18:44:59.312Z

And this point also should be made:

Someone asked in the briefing to experts this morning if this makes defense competitive with the rest of govt. I wanted to shout: defence is the only part of the Canadian govt that has jobs. Everything else is being cut to pay for this.

Steve Saideman (@smsaideman.bsky.social) 2025-08-08T18:45:39.580Z

Ukraine Dispatch

Canada is joining with allies in lowering the price cap on Russian oil to further strangle their economy.

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Roundup: A committee of handwringing over ferries

On Friday, the Commons transport committee met to wring their hands and express their dismay at BC Ferries’ decision to buy new ships from a Chinese firm, and lo, there was much wailing and gnashing of teeth. Chrystia Freeland expressed her dismay. Gregor Robertson expressed his disappointment. The representative of the Canada Infrastructure Bank pointed out that they don’t make any decisions on procurement, and that their loan was secured before that decision was made. And the head of BC Ferries pointed out, once again, that no Canadian shipyard bid on these ships, if they did, it would take them a decade to deliver them (at least), and that the Chinese bid was $1.2 billion cheaper than any of the others.

That of course didn’t stop opposition MPs from doing the performative song and dance. Conservative Dan Albas demanded the government cancel the loan—which the government can’t do because the Infrastructure Bank is arm’s length. And now they want all documents and emails released, which is going to tell them yet again that no Canadian shipyards bid on this contract.

1) This procurement is entirely provincial jurisdiction2) The Infrastructure Bank operates at arm's length and ministers can't cancel any loans it gives3) NO CANADIAN SHIPYARDS BID ON THIS CONTRACT!Is the federal government going to dictate that one of them build these ferries? Seriously?

Dale Smith (@journodale.bsky.social) 2025-08-05T13:50:03.050Z

Perhaps most galling of all was Bloc MP Xavier Barsalou-Duval wanted an apology from the government and from the Canada Infrastructure Bank because it’s “unacceptable” that the government plans to invest in foreign infrastructure when our own steel industry is facing tariffs from Trump—but the federal government isn’t investing. BC Ferries, a provincial Crown Corporation is, and the loan from the Infrastructure Bank is a fully repayable loan. You would think the Bloc of all people would rather the federal government respect a decision by a provincial body, but apparently that only matters if it’s in Quebec.

Effin' Birds (@effinbirds.com) 2025-08-04T13:08:04.388Z

In case you missed it:

  • My weekend column on the false choice between emissions caps and prosperity, as the costs of climate change are already being felt in significant ways.
  • My Loonie Politics Quick Take points out that Poilievre and the Conservatives had a chance to deal with the Longest Ballot nuisances, but chose stupid games instead.
  • My column which responds to what was in that weekend CBC story on the “radically overhauled” Senate and the problems with some of the arguments made.
  • My long weekend column looks at the current issue with contracts for freelance interpreters in Parliament, and why it’s exacerbating an existing crisis.
  • My column asks if it’s time to revive the Economic Council of Canada as we did with the Law Commission, given the uncertain times we live in.

Ukraine Dispatch

Russia claims to have captured another village in the Dniporpetrovsk region. On Monday, Ukraine destroyed one Russian military jet and damaged four others stationed in occupied Crimea. Ukrainian officials say that Indian components have been found in Russian drones. Two days after Ukraine’s parliament voted to restore anti-corruption agencies’ independence, they announced that they had uncovered a major graft scheme involving drone procurements.

https://twitter.com/Denys_Shmyhal/status/1952763302699729187

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Roundup: Pushing back retaliation, again

The latest Trump eruption has prime minister Mark Carney backpedalling some more, and he has said that his deadline for retaliatory tariffs, which was July 21st, is now going to be August 1st, since this is when he’s extended the negotiation deadline to, again letting Trump continue to string him along. Nevertheless, he has also called a Cabinet meeting next week, and will be meeting with the premiers on the 22nd in Huntsville, Ontario. The Conservatives immediately jumped on this and tried to insinuate that this was rich snob Carney being too good to have meetings in Ottawa…except that Doug Ford had already called the Council of the Federation to meet there, and Carney will now be joining in to make it a First Ministers’ meeting.

There is further clarity that New NAFTA-compliant goods will continue to be exempt from these new tariffs (for now, anyway), and energy and potash tariffs will continue to be ten percent instead of the new threat of 35 percent, but it’s entirely incoherent, other than the usual threats about Supply Management (with no reciprocal offer to reduce any American agricultural subsidies). Of course, Trump said a lot of wrong things about Supply Management, so that’s not helping matters any either.

The latest from @clareblackwood.bsky.social on the constantly shifting tariffs.

Dale Smith (@journodale.bsky.social) 2025-07-11T18:11:42.200Z

In the meantime, the Conservatives want to recall the trade committee to hear from trade-exposed businesses. Of course, this is really just about getting clips for social media, since they’re not getting them from Question Period, and much like the transport committee and the ferries to be built in China, this will likely be members of all parties shaking their heads and expressing their dismay at Trump and his tariffs, but not too much dismay because that’s what they do—performative displays of dismay (again, to feed their social media channels). I expect nothing to come out of these meetings (other than a fresh supply of clips), but performers gotta perform, and that’s pretty much all MPs are these days (and yes, that is a Very Big Problem).

Ukraine Dispatch

A Russian attack on Kharkiv on Friday damaged a maternity hospital. Ukrainian drones, in contrast, hit a Russian fighter aircraft plant and a missile production facility. It’s almost like there’s a very different way in which the war is being conducted on either side.

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Roundup: A major far-right terror arrest

The big news yesterday was that four people were arrested and charged in terrorism-related charges for plans to start an anti-government militia, and to violently seize land near Quebec City for their own purposes, and more to the point, that two of those charged are serving members of the Canadian Forces, and not reservists as we have seen in the past. They were also heavily armed and had a number of explosive devices prepared—and it was likely the largest number of weapons and devices seized in a terror-related event in Canadian history.

I can’t speak to the nature of the plot (too few details) but this is the largest amount of weapons and devices seized as part of a terrorism incident in Canada. Ever.

Jess Davis (@jessmarindavis.bsky.social) 2025-07-08T14:20:46.149Z

Details are still scarce, but former CSIS analyst Jessica Davis has some particular observations.

Not small time: "Searches conducted in January 2024 in the Québec City area led to the seizure of 16 explosive devices, 83 firearms and accessories, approximately 11,000 rounds of ammunition of various calibres, nearly 130 magazines, four pairs of night vision goggles and military equipment."

Jess Davis (@jessmarindavis.bsky.social) 2025-07-08T13:19:41.537Z

This is an ideologically motivated plot. In Canada, 77% of terrorist attacks have been carried out by ideologically-motivated actors: newsletter.insightthreatintel.com/p/rising-thr…

Jess Davis (@jessmarindavis.bsky.social) 2025-07-08T13:29:30.504Z

Over the last two decades, however, most terrorism charges have been laid against religiously-motivated terrorists. That has slowly been changing, with more ideologically-motivated individuals getting caught: newsletter.insightthreatintel.com/p/terror-on-…

Jess Davis (@jessmarindavis.bsky.social) 2025-07-08T13:29:30.505Z

They do point to the ideology — anti-government extremism. And there's a long history in Canada of breaking down our terrorism into different categories. (ideological, political, and religious). There's a lot to criticize the RCMP about, but this is not top of the list.

Jess Davis (@jessmarindavis.bsky.social) 2025-07-08T20:09:49.002Z

Another issue here has to do with the military not doing an adequate job of investigating the full extent of far-right extremism in their ranks, in part because they refuse to let outsiders do the investigating, as Leah West demonstrates in this thread. Some of this has to do with an insistence on cleaning up their own messes, but, well, their history on that score has not been great given the sexual misconduct problems and abuse of power scandals they have been dealing with over the past couple of decades. There is still work to do, and it doesn’t help when things happen, such as the commander of the Canadian Army saying he wasn’t notified about certain army members posting to an “abhorrent” Facebook group during the investigation into it.

There is much about this story that is staggering. But the inclusion of military members while deeply troubling is not surprising. A story:I was part of the RWE CAF research network funded by the Department of National Defence to study IMVE in the military for three years 2020-2023.

Leah West (@leahwest-nsl.bsky.social) 2025-07-08T22:30:36.625Z

Ukraine Dispatch

The only real Ukraine news today is that Trump is planning to resume weapons shipments to Ukraine, feeling hurt that Putin was bullshitting him, but more concerningly, says he doesn’t know who ordered the shipments to stop (because he’s clearly not running his own show).

https://bsky.app/profile/united24media.com/post/3ltixwozuor2a

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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: Bad pancakes and fantasy pipelines

It was Mark Carney’s in his first Calgary Stampede as prime minister over the weekend, and it started off on Saturday with the United Brotherhood of Carpenters pancake breakfast, where Carney struggled with flipping pancakes, and was subjected to taunts about how he was worse than Justin Trudeau at it, which he insisted he was better at other things than Trudeau was. He also quipped that he was better with Eggo Waffles, so at least he had a sense of humour about it. He ran into Danielle Smith at said event, but didn’t run into Pierre Poilievre because Poilievre stayed in his vehicle until Carney left.

From the pool report at the United Brotherhood of Carpenters pancake breakfast at the Calgary Stampede this morning:

Dale Smith (@journodale.bsky.social) 2025-07-05T19:18:51.244Z

Carney also gave some local interviews, and of course, the subject of a future pipeline came up, and Carney said he was “confident” that they would get those projects built, and that the private sector was going to do it. But there are no proponents looking to build a pipeline anytime soon, so this remains a fantasy in the eyes of a number of conservatives who insist that it’s still 2014. There was also more special pleading about the Pathways Alliance carbon sequestration project, which again misrepresents what the issue is, which is that they want the government to pay for it, because it’s not economically viable, particularly with the price of carbon as low as it is industrially (and now free for the consumer).

I also need to remind everyone that in all likelihood, the federal government’s plan to use their big Henry VIII clause to simply bypass existing legislation is just going to do the same thing that Harper’s 2012 environmental rewrite did—land projects in court, because it created more uncertainty, not less. And once again, I’m going to adopt a Mallory Archer voice to ask “Do you want litigation? Because that’s how you get litigation.”

Ukraine Dispatch

While there was more trading of drone attacks over the weekend, it looks like Ukraine struck a Russian airfield and its glide bomb stores. Russia has started a new offensive in the Kharkiv region, while they claim to have taken control of two more settlements in the Donetsk region.

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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: Passing a flawed bill with a demand for trust

Bill C-5 passed the Senate yesterday afternoon, little more than 24 hours after it was first tabled in that Chamber. Because they did a pre-study in committee of the whole, the bill went directly to Third Reading debate. There were a number of amendments tabled, some of them pointing out legitimate drafting errors in the bill, and all of them defeated, some on voice votes, some on recorded divisions. A few themes emerged through debate and proposed amendments, many of which were around the concerns of Indigenous people. It wasn’t just the lack of consultation, and it wasn’t just the stories of Indigenous senators’ staff being subjected to racist tirades over the phone. Some of it was, quite correctly, the concern that these projects will move ahead and the local First Nations will be screwed out of a financial stake in these projects yet again. None of this swayed enough senators to risk actually making amendments, because they have been sufficiently cowed into going along with the government’s ludicrous insistence that this is of such great urgency that there can be no delays, which amending would mean, either by needing to recall the House of Commons to deal with, or to postpone passage of the bill until September.

Another theme that kept being brought up, which continue to annoy me, is that the Canadian Senate is somehow or should be bound by a kind of “Salisbury Convention” like the House of Lords, which it isn’t, and frankly should not apply here. “Oh, the government campaigned on this and won the election, so we shouldn’t oppose it.” They didn’t campaign on an open-ended Henry VIII clause that is ripe for abuse, but that’s what these senators just rushed through. The Government Leader, Senator Marc Gold, told senators that they “Have to trust the government.” No, you absolutely do not. In fact, it is your job not to “just trust” them. I can’t believe I need to say that. So many senators just abdicated their responsibilities, and then patted themselves on the back for it.

And the government now has a giant Henry VIII clause that they promise to use responsibly—really! Just trust them!

Dale Smith (@journodale.bsky.social) 2025-06-26T20:11:56.159Z

Here is @senatorpaulasimons.bsky.social's appearance on #PnPCBC.

Dale Smith (@journodale.bsky.social) 2025-06-27T00:06:53.676Z

I also have to take a moment to push back against something that was said in debate, which was when the Conservative leader in the Senate, Senator Housakos, claimed that they needed to pass this bill to “bend some environmental rules” because the country is “facing bankruptcy.” Like hell it is. The rush to denigrate the record of the past decade, where the country faced some very serious challenges including a global pandemic which they have mostly memory-holed, did call for some higher spending, but we are nowhere near the “debt bomb” levels of the 1990s, and people need to stop pretending otherwise. And we especially don’t need this kind of absolute horseshit to justify bad legislation and Henry VIII clauses, because that’s the kind of genie you may not be able to put back in the bottle. Yikes.

Programming Note: I’m taking an extended long weekend, through Canada Day, because I am exhausted. See you on the flipside, everyone!

Ukraine Dispatch

Ukraine’s top commander says that they have halted Russia’s advance into the Sumy region, and have stabilised the front lines. Russia claims to have taken the village of Shevchenko in Donetsk region, which is near a lithium deposit that they covet.

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Roundup: A major agreement with the EU

At the Canada-EU summit in Brussels yesterday, Mark Carney signed a new security and defence partnership, and the joint communiqué was very, very long. A lot of stuff that might have been part of a G7 communiqué, but that wasn’t going to happen given how much time and energy was spent managing Trump and the Americans, and that included a lot of talk about upholding the rules-based international order, or combatting climate change, and that kind of thing, that would have caused Trump to throw another one of his public tantrums. But that’s the world we live in now.

This means that Canada is now on the road to participating in programmes like ReArm Europe, which seeks to drive down the cost of joint military procurement projects by increasing the scale of the buys, and helps to keep those industries in Europe rather than relying on the American defence-industrial complex, but the hope is that this agreement will open the Canadian market to those procurements as well (though I am curious to know how many Canadian firms are actually Canadian and not just American branch-plants).

Today will be the big NATO summit where increasing the expected defence spending target is the major focus, though there will likely be some sidebars around de-escalation with Israel and Iran. Ukraine will also be a focus, though president Zelenskyy is not expected to attend (though he was in the UK yesterday to sign new agreements on military production there, and to have lunch with the King at Windsor Castle). Nevertheless, that five percent target—to ostensibly be divided up as 3.5% operational spending and 1.5% in related spending that has some kind of a defence-adjacent component—is going to be incredibly difficult for the majority of countries to achieve, but especially to sustain. You already have some countries who met their two percent target by front-loading a bunch of procurement, but they have no idea how they’ll manage to stay at two percent, let alone 3.5%-plus going forward. (It’s also a dumb metric because it doesn’t deal with contributions to operations, and the disparity between the denominators among member countries is pretty vast, to say nothing about the fact that it’s easier to hit your targets if you crash your economy to drag your denominator down). One hopes there will be some cooler heads around the table, but it looks like the 5 percent is a done deal, which will create problems down the road.

https://bsky.app/profile/plagasse.bsky.social/post/3lsbzgrlhpk2u

Ukraine Dispatch

The attack on Kyiv early Monday wound up killing at least ten, including a child, as an apartment block was struck. Ukraine says that it attacked and set ablaze an oil depot in Russia’s Rostov region.

https://twitter.com/zelenskyyua/status/1937171580552966364?s=61

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