Canada Minute: Ford Negotiates, Tense G7, and Carney Sworn In

Saskatchewan Minute - Your weekly one-minute summary of Saskatchewan politics.

This Week In Canada:

• Canada is reconsidering its $19-billion purchase of 88 F-35 fighter jets, with Defence Minister Bill Blair indicating that alternative options, including European-built aircraft, may be explored. The reconsideration comes amid growing tensions with the US over tariffs and threats from President Trump, sparking support among Canadians to cancel the deal. Although Canada has already paid for the first 16 jets, Blair suggested that the remaining fleet might include alternatives like the Saab Gripen, which could be assembled in Canada. The potential shift could also impact Canada's defence relationships, as aerospace companies in the country are part of the F-35 supply chain.
  
  
• Ontario Premier Doug Ford says a high-stakes meeting with US officials was “productive” and “positive,” despite no immediate resolution on tariffs. The meeting, which included federal ministers and Canada’s Ambassador, aimed to address trade tensions, with Ford stating that discussions were civil and progress was made. The talks followed Ford’s suspension of an Ontario electricity surcharge imposed in retaliation for US steel and aluminum tariffs, after Commerce Secretary Howard Lutnick extended an invitation. While the US maintained a tough stance, Canadian officials emphasized the importance of cooperation and understanding the Trump administration’s trade policies. Ford warned that ongoing tariffs would increase costs for Americans and reaffirmed that Canada would not be pressured into concessions. Another meeting has been scheduled to continue discussions.
  
  
• Hudson's Bay, Canada's oldest company, is facing imminent closure after struggling to secure financing to continue operations. The department store chain, which has been in business since 1670, announced it could begin liquidating its assets next week, risking over 9,000 jobs. Despite efforts to find a solution, including talks with landlords and stakeholders, the company has been unable to stabilize financially, citing decreased consumer spending and post-pandemic challenges. The company filed for creditor protection in early March, revealing it owes nearly $950 million to creditors, including major brands like Ralph Lauren and Chanel. Although the situation remains grim, Hudson's Bay is still hoping for a last-minute rescue to avoid a full shutdown.

Last Week In Canada:

• Mark Carney was sworn in as Canada’s 24th Prime Minister, replacing Justin Trudeau and immediately facing a trade war with US President Donald Trump. Carney vowed to defend Canadian sovereignty amid Trump’s annexation rhetoric and economic pressure, emphasizing the need to strengthen trade partnerships beyond the US. His new Cabinet, significantly smaller than Trudeau’s, includes François-Philippe Champagne as Finance Minister and Mélanie Joly remaining as Foreign Minister.
  
  
• Carney’s government has eliminated the consumer carbon tax, fulfilling a key campaign promise and reversing Justin Trudeau’s signature climate policy. The change, enacted through an Order-in-Council, will take effect on April 1st, 2025, preventing the planned price increase. Carney emphasized that rebates will continue with one final payment in April. Conservative Leader Pierre Poilievre questioned the decision’s permanence, suggesting the Liberals might reinstate the tax after the election. The industrial carbon tax remains in place.
  
  
• Tensions flared at the G7 meeting as US Secretary of State Marco Rubio denied the existence of a trade war despite Canada’s Foreign Minister Mélanie Joly stating otherwise. Meanwhile, Trump’s remarks suggesting Canada should become a US state were met with sharp rebukes from Joly. The trade friction overshadowed discussions on key global issues, including Russia’s war in Ukraine, though the G7 nations did reaffirm their commitment to Ukraine’s territorial integrity.