Tag Archives: Trade

Roundup: Axing the other tax, just because

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Because he is unable to pivot, or have any kind of plan B, Pierre Poilievre went to a steel plant yesterday to announce that he will not only repeal the full legislation that implemented the carbon levy, but he’ll also repeal the industrial carbon price under the bullshit magical thinking of “technology, not taxes.” The problem? Most provinces have their own industrial pricing schemes, and the federal backstop only applies to a couple of provinces, and mostly it set a price floor so that provinces can’t undercut one another. None of this is actually news, thought, as he’s been saying it for months, but most legacy media treated this as new and novel. Industry doesn’t like his plan—they prefer the industrial pricing system because it provides stability. But Poilievre needs a tax to axe, so he’s going all-in on making this a carbon price election after all, because he’s that incapable.

 

The problem with “technology not taxes” is that the price signals sent by carbon pricing are what incentivise companies to invest in the technology to reduce emissions. They won’t do it out of the goodness of their hearts. They need to feel the squeeze before they’ll invest to make the changes, and that won’t happen if they are given free licence to just pollute without consequence. You would think that a conservative party would understand market dynamics, but no. They don’t have an intellectual grounding any longer, they’re just rage-baiters looking to “own the Libs” by any means necessary. Oh, and the EU is going to start putting in carbon border adjustments, so if we’re pivoting our trade to those markets, well, our not having a price will find us being punished by their markets, so maybe this is a really dumb idea after all.

Ukraine Dispatch

Ukraine’s military shot down 90 out of 170 drones overnight Monday, with damage and injuries reported in Odesa. Russians also claim that they are moving ahead in Zaporizhzhia region, saying they are pushing through Ukrainian lines. Ukraine has attacked energy facilities in Russia’s Astrakhan region, sparking a fire.

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Roundup: Delusions about Canadian defence industry capabilities

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On Sunday, following NDP leader Jagmeet Singh’s trip to Nunavut, he released an Arctic sovereignty and defence policyin a bit of pre-election posturing. The actual Arctic sovereignty stuff was reasonably fine, which mostly involves better investments in Northern and Inuit communities, but the defence part? Hoo boy. To start off, it was poorly worded in talking about “repatriating” the F-35 contract to “build the jets” in Canada, but it wasn’t immediately clear if he thought they could build the F-35s in Canada (nope), or if it meant restarting the entire process for selecting a new fighter, which again, isn’t really possible at this stage as the CF-18s are at the absolute end of their lifespan, and we can’t just turn procurements off on a dime.

As Philippe Lagassé explains, yes, we need to pivot away from American platforms, but that needs to be done in a managed and methodical way that is going to take years, and the NDP need to realise this (and so, frankly, to the Liberals given the kinds of crazy things all of the leadership contenders were saying during their debates). But seriously, guys, you can’t just claim we’ll meet all of our military obligations with Canadian industries alone. That’s not even wishful thinking—it’s full-on delusion. You may think that Bombardier’s vapourware promises sound great, because Canadian jobs, but when they can’t deliver? Those are some pretty hefty consequences to face.

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Carbon levy gaslighting

In amidst a bunch of “trutherism” about the document that Mark Carney signed on Friday to zero out the consumer carbon levy (for which they published an extra edition of the Canada Gazette to enact), the Conservative continue to insist that Carney is just going to raise it back up after an election, which seems to be admitting that he’s going to win, which is kind of funny.

Meanwhile, the Liberals are doing themselves no favours by spending the weekend praising Carney for “getting it done” in ending their own signature environmental policy. And Liberal MPs were all over social media patting themselves on the back for “listening to Canadians,” and making up outright Orwellian excuses for defeating their own gods damned policy. And then their supporters were in my replies offering up straight-up revisionist history about the carbon price and trying to blame it on Stephen Harper, I shit you not. I really, really not appreciate being gaslit about your stupid political moves, especially when they refuse to own why it became so divisive, particularly when they refused to properly explain or defend their own policies.

Ukraine Dispatch

Russian drones hit a high-rise building in Chernihiv. Contrary to the Russian propaganda that Trump has been reading, Ukrainian troops in Kursk region are not encircled, even though the Russians are pushing forward to move Ukrainian troops from the region.

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Roundup: PM Carney’s first day

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At around 1030 yesterday morning, Justin Trudeau formally submitted his resignation to the Governor General, and for the next thirty or so minutes was the interregnum period during which *gasp!* His Majesty had nobody to advise him. Shortly after eleven, Mark Carney took the oath, and became prime minister, followed by oaths sworn by his entire Cabinet (save Mélanie Joly, who was still at the G7 ministerial, and would be sworn-in later in the afternoon, missing the “family photo.”) (Photos of the Cabinet arriving at Rideau Hall here).

The Cabinet was indeed decidedly smaller, and not quite gender-balanced—thirteen men, not counting Carney, and eleven women, and there was no one from Alberta or PEI in Cabinet, with only two ministers west of Thunder Bay—Terry Duguid and Jonathan Wilkinson. Carney also did not include the Leader of the Government in the Senate (which is a mistake), and the fact that he jammed Women and Gender Equality under Stephen Guilbeault in “Canadian Identity” sends a signal, as does putting both labour and employment under “Jobs,” considering that they serve very different interests. Chrystia Freeland was given the post of transport minister and internal trade (now that Anita Anand has done the heavy lifting on that file), while Karina Gould was excluded. There was some rumbling that Carney was signalling a more rightward shift with these choices, but Nate Erskine-Smith is definitely very progressive, as is Patty Hajdu.

During his brief media scrum after the swearing-in, Carney resurrected the hateful phrase from Stephen Harper, circa 2006-08 of “Canada’s New Government™.” Nope. Stop it. He was asked about his assets and he only confirmed that they are in a blind trust, and pivoted to pointing out that much of it came from work in the private sector, which Poilievre hasn’t done, and later pivoted another response to Poilievre’s lack of a security clearance. Carney also confirmed that he will be heading to London and Paris early next week to meet with European allies and not to Washington to meet with Trump, but would not confirm when he plans to call the election.

From there, the Cabinet headed to West Block for a meeting, during which Carney put on a show of signing a piece of paper that claims to effectively end the consumer carbon levy, ostensibly by signing an Order-in-Council to set the rate to zero…but that was not an Order in Council. So, our oh-so-serious banker is performing stunts for the camera. *siiiiiiiiiiigh* He also said the rebates would still be going out for this quarter, but the whole thing has been vague (just like Carney’s entire leadership campaign). Carney claimed that the levy “failed,” but it didn’t. What failed was the government’s ability communicate their way out of a wet paper bag in that they couldn’t defend it against either the lies of the Conservatives, or the shitty job of the Parliamentary Budget Officer in his reports (that bordered on mendacity), or in getting an actual message across to the media rather than expecting the media to learn the policy and fact-check the lies, which they were absolutely never going to do. So now we will have a costlier and less efficient climate policy that will pass along costs to consumers who won’t get a rebate. Brilliant job, everyone. Slow clap.

Here are some quick quotes in reaction to the transition. The Conservatives’ front-bench spent the entire day shitposting and trying to make mean memes, because that’s where we are in Canadian politics, in spite of everything that is going on around us. Oh, and Scott Moe forwarded a list of demands to Carney, because of course he did. Zeus help us.

Ukraine Dispatch

A Russian missile attack hit a residential area of Kryvyi Rih, injuring at least a dozen people. After an appeal by Trump, Putin says he’ll spare any Ukrainian soldiers still in Kursk region if they surrender (and we know how well Russians have been treating their prisoners, and how readily he’ll keep his word). Ukrainian drones hit two Russian gas compressor stations.

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Roundup: Positive feelings about a useless meeting

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We seem to be caught in a pattern where Donald Trump will invite a world leader to the White House—yesterday it was NATO Secretary General Mark Rutte—and he goes on an unhinged rant while they’re sitting there, trying to avoid saying anything that will set him off. And yesterday’s rant included a full-on threat to annex Greenland (while Rutte tried to downplay NATO’s involvement in any way, which is true to the extent that it only operates by consensus), and went on an extended rant about Canada not working as a real country, and made up the lie that America pays for our military (not true in the slightest), before repeating the falsehood that the US subsidizes us.

Meanwhile, Dominic LeBlanc and François-Philippe Champagne had their meeting with Howard Lutnick, with Doug Ford along for the ride as he continued to try and make himself the main character (and I watched Conservative talking head pundits also putting forward this distorted view of reality). Ford came out of the meeting, effusive about how “positive” it was and how they were going to have more meetings next week (and was later corrected that officials were going to meet, not him), while the two ministers basically talked a lot and said nothing, because nothing could be accomplished here. But they had to pretend that something came from this meeting when obviously nothing did, as there were no changes to any tariffs, and Ford’s pressure tactic around the electricity “surcharge” remains off the table again.

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Elsewhere, Trump’s pick for US ambassador to Canada had his Senate confirmation hearing, and when asked, he said that Canada is a sovereign country, and tried to claim that Trump’s expansionist rhetoric is about “negotiation tactics,” but it certainly doesn’t seem to be. And yeah, he said the bare minimum to ensure that he wasn’t PNGed before he could even arrive in the country. Closer to home, Scott Moe continues to call for capitulation to China regarding their tariff fight, because of course he did, and claimed it was about protecting Quebec’s industries over Saskatchewan’s, except Quebec doesn’t really have much of an auto sector, but Moe’s brain is pretty smooth, after all.

Ukraine Dispatch

An overnight attack on Dnipro injured three women and damaged apartment buildings. Ukrainian forces are in retreat in parts of Kursk region, which means losing a bargaining chip in possible peace negotiations. And Putin has all kinds of conditions on a possible ceasefire, because he’s not serious, and Ukraine only went along with the plan to call his bluff.

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Roundup: Trump and Lutnick mock Ford’s capitulation

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The reverberations from Doug Ford’s capitulation on the electricity “surcharge” was mostly met by mocking—Howard Lutnick mocking him on Fox, and Trump mocking him after his indignant “electricity affects people’s lives,” as if the tariffs don’t. Along the way, CNN fact-checked Trump’s claims that Canada is one of the highest-tariffing countries, when in fact we’re one of the lowest (Supply Management excepted).

Closer to home, the Dominic LeBlanc announced the retaliatory tariffs to the steel and aluminium tariffs, but also clarified that the meeting with Lutnick today is about tariffs and not renegotiating NAFTA as Ford claimed. (When asked later, Ford insisted that tariffs are NAFTA, which is obvious bullshit after he got caught in a self-aggrandizing lie). Meanwhile, Danielle Smith and Ford appear to be butting heads as Smith continues to demand a diplomatic approach (as though Trump responds to diplomacy), while Scott Moe took to the microphones to demand capitulation to China on EV tariffs. Because of course he did.

As for Mark Carney, he had breakfast with Ford before heading to a steel plant in Hamilton (where he avoided media questions), and Ford later praised Carney for his command of numbers and business skills. Carney later remarked that he’ll meet with Trump “when there’s respect for Canadian sovereignty.” So, never?

PBO Report

The Parliamentary Budget Officer released a new report yesterday on the effects of the emissions cap, and it was trash, because it once again compared a scenario that doesn’t exist. This is a pattern with this PBO, and because he’s an independent Officer of Parliament, he gets no accountability except from maybe the media, and rest assured, they won’t hold him to any.

Ukraine Dispatch

Russia launched three missiles and 133 drones in an overnight attack Tuesday night, and a missile attack on Kryvyi Rih killed one woman. Ukraine also contends that attacks on the port in Odesa are an attack on global food security. Putin visited the Kursk region for the first time since Ukraine occupied it, while Ukraine’s top army commander says the will fight in that region as long as needed. It doesn’t look like Putin will accept the US’ ceasefire proposal, at least not without a bunch of demands of his own. (Try and look surprised).

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Roundup: Tantrums, and Ford capitulates

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The day started off with a tantrum—Donald Trump screaming that Ontario wasn’t allowed to put the “surcharge” on their electricity exports, and said he was going to make Canada pay dearly, and then threatened to ramp up the incoming steel and aluminium tariffs to 50 percent. That caused another huge panic, and by the end of the day, Doug Ford had secured a meeting with Howard Lutnick (apparently with Dominic LeBlanc), and suspended the “surcharge,” while Trump decided that the global steel and aluminium tariffs were still coming, but only at 25 percent, and those are now in effect. And that in turn will trigger more retaliatory tariffs from the Canadian federal government. Trump also went on an extended rant about annexation, but flattered Ford in the process, which made me want to throw up a little.

Guys, I’m just so tired.

I scarcely know where to begin. The regulations for that “surcharge” were released, and it reads very much like a cute attempt to pretend that they’re not tariffs for the sake of international trade, so that he can pretend this is provincial jurisdiction and not federal. After two days of bluster and going on every cable news show in the US insisting he wasn’t going to back down on this “surcharge” until the tariffs were gone, and that he was going to go even further, it took one phone call with Lutnik and Ford capitulated right as the global steel and aluminium tariffs were coming into place, so how exactly did he help Ontario or anyone? I’m at a loss. He’s also pretending that he has a role in international negotiations, neglecting in his tweet to mention that Dominic LeBlanc will be at the table with Lutnik, but on top of that, you think you’re actually going to be negotiating a renewed NAFTA? Really? Given that Trump has proven that any agreement he signs isn’t worth the paper it’s written on because he only operates in bad faith? And you still want to go ahead with this farce?

Meanwhile, Poilievre demanded 50 percent retaliatory tariffs if the steel and aluminium tariffs went to 50 percent, Jagmeet Singh continues to demand that Parliament be summoned to pass a package of aid for workers before the election, and Elizabeth May wants a “wartime Cabinet,” and I just can’t because it misunderstands what actually happened during the First World War. Also, Alberta’s energy minister Brian Jean thinks he’s an international negotiator too. And hey, here’s a plausible explanation for Trump’s constant tariff chaos—because affected CEOs have to pay millions to see him at Mar-a-Lago to plead their case, and he’s making a lot of money that way.

Ukraine Dispatch

Ukraine downed a ballistic missile and 70 out of 126 drones in Monday night’s attack, while Russia claims they are making progress in reclaiming Kursk region. Ukrainian drones struck two more Russian oil facilities, with explosions recorded. The US says they are resuming military aid and intelligence sharing after Ukraine said they were willing to sign onto a ceasefire proposal, but Russia has not agreed yet (and won’t agree because they don’t want a ceasefire). AP has a selection of photos from the war.

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Roundup: Carney chosen, now the transition begins

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The Liberal leadership race has concluded, with Mark Carney winning by 85.9 percent on the first ballot, winning in every riding including those held by Chrystia Freeland and Karina Gould. The results were announced after Justin Trudeau’s farewell speech, and a barnburner from Jean Chrétien, and then Carney delivered an utterly bland speech, which has become par for the course. (Another Carney bio is here).

With Carney now having won the contest, now the transition begins, which won’t happen overnight, and he won’t be sworn in as PM at Rideau Hall for a few days, while this gets sorted. That won’t stop the constant drone of the concern trolling that he’ll be PM without facing an election (because apparently nobody knows basic civics in a Westminster parliamentary system), and because they want to argue in bad faith about what this means. If you need some convincing, here is a look back at previous prime ministers who didn’t have a seat in the House of Commons when they took office (though two examples were senators at the time).

In reaction, Susan Delacourt points out that Carney also has the job ahead of reinventing the Liberal Party for the next generation, as has tended to be the case for most leaders. Paul Wells muses about Carney’s brand of change, and the what it says about his competition with Poilievre to lead the country in the upcoming federal election, whenever it kicks off. Colin Horgan looks back to Carney’s past performances, particularly when he got outflanked by Poilievre at a committee appearance. As well, Trudeau’s official photographer for the past 15 years, Adam Scotti, reflects on the journey.

Ukraine Dispatch

Russia launched another heavy aerial attack on Saturday that pounded Dobropillya in the Donetsk region, killing at least 22 people. There were another 14 killed and at least 37 wounded in Kharkiv the same night. Russian forces have also recaptured three settlements in the Kursk region, trying to drive Ukrainians out. Ukrainian drones made a long-range strike against an industrial facility overnight Saturday.

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Roundup: Moving onto the dairy front

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The trade war seemed slightly more stable yesterday as the reprieve on most goods seemed to be holding, but it took no time at all for Trump to start musing about new, invented grievances and irritants. The latest is the dairy sector, for which there are limits as to how much the US can export to Canada tariff-free, but again, Trump has blown this out of proportion in his own mind. And as a result, he threatened 250 percent tariffs on Canadian dairy…but we don’t really export to them, certainly not liquid milk in large part because of the Supply Management system, so that would have very little impact on our industry.

The thing that did have people worried was fresh news out of the New York Times that Trump’s annexation talk has moved into threats about tearing up boundary treaties, particularly around things like the Great Lakes and cross-border river systems, and moving into things like shared military operations and NORAD, and after the floated threats about the Five Eyes a couple of weeks ago, it’s hard to ignore any of these threats, and why there needs to be a very concerted effort by the government to make plans for how we’re going to deal with this once it happens, because we know that nothing is off the table with Trump any longer.

I’m generally not into White House drama, but following it becomes more necessary than I’d like to admit these days. To that end, here is a look at an explosive meeting in the Cabinet room where several cabinet secretaries unloaded on Elon Musk, which wound up reining him in (somewhat, for now). But oh, man, the absolute stupidity of what is happening in that administration is boggling. As well, here’s a look at how framing the Trump presidency through the lens of reality television helps to make some of the chaos make a little more sense.

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Ukraine Dispatch

After the US cut off military aid, including access to satellite imagery for Ukraine, Russia launched a major missile attack, which targeted energy infrastructure, killed four in the eastern town of Dobropillia, while another five died in attacks in the Donetsk region. The Ukrainian forces within Kursk region appear to be nearly surrounded by Russians, though there have been counteroffensives in the past few days. Ukrainian drones did attack the Kirishi refinery.

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Roundup: Another month of reprieve—maybe

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Less than a week into the trade war, and the Americans have somewhat recanted? But only somewhat. Yesterday they decided to suspend the tariffs on New NAFTA “compliant” exports from Canada until April 2nd, but no one is quite sure what that means. Nevertheless, the Canadian government is still maintaining its first tranche of retaliatory tariffs, and will not remove them until the threat is gone, but they are holding back the second tranche of retaliatory actions until April 2nd, or until Trump abandons his tariff nonsense (which could be never).

We also got word about the call that Trudeau had will Trump earlier in the week, and how heated it got, particularly on the question of dairy imports to Canada, where Trump got profane. More telling was the fentanyl question, where Trudeau pointed out the low seizures (and remember that 43 pounds seized last year was not actually all coming across the border, but apprehended within a certain radius of said border), to which Trump is apparently using a secret metric regarding progress on stopping it—proving yet again that this isn’t actually about fentanyl, and that it remains a legal fiction for Trump to abuse his authority. Also, when asked about Mélanie Joly terming the current state of affairs a “psychodrama,” Trudeau responded that he calls it “Thursday.” So, there’s that. And Trump is now posting on his socials that Trudeau is trying to use the tariffs to stay in power, which is again just him pulling it out of his ass, and MAGA-types in this country are already saying “See! That’s what I’m afraid of!” *sighs, pinches bridge of nose*

Meanwhile, Doug Ford declared that he’s going to impose a 25 percent tariff on electricity exports to three American states as of Monday—but I’m not sure that he can actually do that, because trade and commerce powers are federal jurisdiction. Imposing tariffs is federal. Electricity exports are federally regulated by the Canadian Energy Regulator. But people are also insisting that Ontario’s Independent Electricity System Operator, which is a government-created entity, can apply a surcharge, which again raises questions about how this doesn’t run afoul of federal trade and commerce powers. And this is Ford we’re talking about, who always talks a big game and very rarely does he actually back it up with anything. I would remain incredibly skeptical of the whole thing.

Ukraine Dispatch

Russia launched another mass drone attack on Odesa, damaging energy infrastructure. Russia claims to have captured another village in eastern Ukraine, Andriivka, but there is no confirmation. While Trump’s lackies are holding meetings with opposition politicians in Ukraine, opposition leader Petro Poroshenko says he’s opposed to a wartime election. Trump is also talking about revoking the temporary protected status for some 240,000 Ukrainians in the US, and could start deporting them.

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Roundup: Offering a limited reprieve

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Because the trade war is many ways a weird power dynamic, yesterday was all about offers of reprieves. After a lengthy phone call between Justin Trudeau and Trump, there came word of a “reprieve” on tariffs for the auto sector—for a month—but at the behest of the Big Three auto companies rather than any of Trudeau’s efforts, and while there hasn’t been official word, Senior Government Sources™ are saying that Trudeau is not budging on the retaliatory measures. And why would he? The one-month reprieve came with the message from both JD Vance and Trump’s press secretary that they want those manufacturers to locate all of their factories in the US to avoid tariffs, but the “official” reason for the tariffs remains fentanyl, because Trump needs the legal fiction of a “national emergency” to use executive powers to levy tariffs rather than Congress (but he controls that, so the logic only extends so far). Oh, and now Trump is talking about agricultural carveouts, because they’re stupid and don’t realise the consequences of their actions until it’s too late.

In provincial reactions, both Danielle Smith and Scott Moe said they were pulling American liquor from their provincial liquor control boards, a day after everyone else. Smith had to put on a big show that included one of her Alberta Sheriffs holding a big rifle to show that she was super serious about them patrolling the border (not that they can legally do much more than taxi that person to an authorised federal border agent or RCMP officer). Both Smith and Moe also insisted that they didn’t want export taxes on either oil or potash, which again, is a boneheaded move of signalling to Trump that they don’t want to play their strongest cards ever (because they’re both super geniuses). Of course, it’s not their call because those powers are federal, but it’s still a sign of how unserious either of them is in the face of an existential threat. Meanwhile, Yukon premier Raj Pillai is “considering” limiting ties with Elon Musk’s businesses, like Starlink (which seems like something they should be doing more than just considering).

There was also word that there was more progress on interprovincial trade barriers and incremental progress toward credentials recognition—with some exceptions for Quebec because of linguistic requirements (but I still have questions about how they plan to get self-regulating bodies like the colleges of physicians and surgeons to play ball).

Ukraine Dispatch

A Russian missile hit a hotel in Kryvyi Rih, killing three and injuring at least twenty-nine others. The Americans are cutting off the flow of intelligence to Ukraine, because they’re now on Putin’s side. A Ukrainian commander says that NATO forces are not ready for modern drone warfare. Here is an examination of the state of the war, and that it would take Russia 118 years to fully conquer Ukraine at their present rate of advancement.

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