Canada Minute: Issue 87

Canada Minute - Your weekly one-minute summary of Canadian politics.

📅 This Week In Canada: 📅

• The federal government has announced dollar-for-dollar counter-tariffs on $27.6 billion worth of US goods, effective September 8th, in response to the 50% tariffs the United States imposed on Canadian goods on August 22nd. Finance Minister François-Philippe Champagne said the counter-tariffs of 15%, 25%, and 50% will apply to more than 700 products, with each rate matching the corresponding US rate, focused on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Ministers claim the list strategically targets products where Canadian-made alternatives are available and products from politically important US states. The government paired the counter-tariffs with a $7.5-billion support package for affected workers and businesses, on top of nearly $25 billion in tariff supports provided over the past 18 months. The package includes a $2-billion Canada Strong Diversification Fund, a $1.5-billion top-up delivered through regional development agencies, $3.5 billion in rapid response supports that expand Employment Insurance flexibilities for workers and employers, and extended loan terms for large companies. Late Wednesday, the Department of Finance adjusted the list based on feedback, removing seafood and fish products to protect against broader economic harms.
  
  
• Meanwhile, Conservative Leader Pierre Poilievre is calling on Prime Minister Mark Carney to reconvene Parliament and release the text of the trade agreement the federal government rejected. In a letter released on August 24th, Poilievre asked the Prime Minister to recall Parliament without delay so MPs can scrutinize the failed negotiations and the government's response, and to adopt an emergency economic plan that would scrap all gas taxes until next Canada Day and exempt people who reinvest in Canada from capital gains taxes. Poilievre argues Canadians deserve to know what was on the table, saying the rejected text holds no national secrets because the US administration has already seen it. Finance Minister François-Philippe Champagne dismissed the demand, calling the talks probably the most publicly advertised trade negotiation he can recall. Former Alberta Premier Jason Kenney said the negotiations should remain confidential, but agreed that Parliament should be recalled to debate the trade dispute. The House of Commons is not scheduled to return until September 21st.
  
  
• Voters in three federal ridings go to the polls today in by-elections that could decide whether Prime Minister Mark Carney's Liberals maintain their majority in the House of Commons. By-elections are being held in Beaches-East York in Ontario, Chicoutimi-Le Fjord in Quebec, and North Vancouver-Capilano in British Columbia, where the seat became vacant after Liberal MP Jonathan Wilkinson left Parliament to become Canada's ambassador to the European Union. Elections Canada says electors who are not yet registered can still register at their polling place today, with identification proving their identity and address. Meanwhile, the Chief Electoral Officer has received official notice that the Montreal riding of Rosemont-La Petite-Patrie is now vacant as well. A by-election there must be announced between September 6th and February 22nd, with the earliest possible voting day being October 12th.
  
  
• Prime Minister Mark Carney has announced that the federal government will spend $11.3 billion to build six new icebreakers for the Canadian Coast Guard at the Chantier Davie shipyard in Lévis, Quebec. Carney called it the largest shipbuilding contract in the province's history and said it will support 5,000 jobs during construction. The new vessels will replace the coast guard's aging heavy and medium icebreakers, fulfilling a promise first made in 2019, and will be built with Canadian steel under the federal government's Buy Canadian procurement policy. Carney said the first steel will be cut next fall, with the first ship delivered five years later and the full fleet in service five years after that. The announcement, made alongside Quebec Premier Christine Fréchette just days after trade talks with the United States collapsed, is part of a broader Coast Guard fleet renewal expected to deliver 88 new vessels in total by 2045.
  
  
• Prime Minister Mark Carney will also address the European Parliament in Strasbourg, France next month, having accepted an invitation from European Parliament President Roberta Metsola. While in Europe, Carney will also attend European Commission President Ursula von der Leyen's annual State of the Union address on September 16th and meet with members of the European Parliament to strengthen Canada's ties with the European Union. The visit comes as trade discussions between Canada and the EU intensify following the collapse of negotiations with Washington. Carney says Canada will begin intensive discussions with the European Union, the world's second-largest economy, to build a stronger and deeper economic and security partnership. The EU has been a key pillar of Carney's strategy to diversify trade as he tries to double the volume of Canada's non-US exports.
  
  

🚨 This Week’s Action Item: 🚨