Weekly Roundup - Aug 21, 2026
Top Federal Stories
As of Friday afternoon, Trade Minister Dominic LeBlanc and chief negotiator Janice Charette were back at the U.S. Trade Representative's office in Washington, with the deadline for an agreement set for just after midnight. Without an agreement, President Trump's 50 per cent tariff on roughly $28 billion of Canadian goods takes effect. The tariffs were originally slated to take effect on Wednesday August 19th, but were paused on Tuesday for three days so both sides could turn an agreement in principle into legal text. Neither government has released terms, so the following reflects what negotiators and industry sources have described, rather than a final agreement.
Media reports suggest the deal would reduce the 50 per cent tariff on Canadian steel and aluminum to 25, with a quota system capping how much Canadian metal can enter the U.S. before a 50 per cent tariff is applied. Canadian negotiators are also pushing for the elimination or reduction of tariffs on Canadian-produced cars and auto parts.
In return, U.S. negotiators want to see American liquor back on the shelves of Canadian liquor stores, and want language removed from provincial procurement policies that shut out U.S. suppliers. Prime Minister Carney is alleged to have told premiers in a briefing that a deal will not be possible without removing bans on American liquor. Some, such as Manitoba’s Wab Kinew, are skeptical of the strategy but nonetheless have agreed to put U.S. liquor back on store shelves. Others, like Ontario’s Rob Ford, have been silent despite previously taking a tough posture on the issue. Regardless, consumer boycotts from Canadians are likely to keep sales down.
Leaked audio from a Republican fundraiser captured Vice President JD Vance saying Carney tried, unsuccessfully, to "out-tough" Trump, claiming that Canada backed down on plenty of issues. In the same audio, Vance can be heard crediting Conservative MP Jamil Jivani as a useful back channel and advocate during negotiations. Vance and Jivani have been friends since attending Yale together.
Separate from this deal on tariffs, PM Carney and President of Mexico Claudia Sheinbaum agreed Thursday that renewing CUSMA quickly is the priority. Mexico enters its third round of formal negotiations with the U.S. in September, but Canada has not yet begun its formal CUSMA negotiations.
The race is officially on in Calgary-Shaw, with voters heading to the polls September 14 to choose a replacement for former UCP cabinet minister Rebecca Schulz. While the vote won’t change the balance of power in the legislature, it could offer an early read on the political mood in Calgary ahead of next year’s provincial election.
The UCP is running local business owner Mike Derry, while the NDP has nominated insurance and finance professional Kyle Campbell. Premier Danielle Smith and Derry are keeping their pitch focused largely on local priorities, while the NDP is looking to make separatism part of the ballot-box conversation. The party has labelled Derry an “extremist,” pointing to support for Derry from those associated with the independence movement. Derry has been pressed to clarify his own position and the issue will likely remain top of mind with the byelection taking place just five weeks before the province-wide referendum. While it’s likely to be a two-party race, Alberta Liberal Leader John Roggeveen is also running and the newly formed Progressive Tory Party is expected to field a candidate. Calgary-Shaw has traditionally leaned conservative but flipped to the NDP during the 2015 orange wave.
This week Premier Smith acknowledged that the October referendum is being targeted by foreign influence campaigns after Canadian researchers identified a surge in online activity linked largely to Russian-based networks. Researchers tracked nearly 300 examples of suspected attempts to shape the Alberta debate between mid-July and mid-August, with much of the activity pushing narratives that question the integrity of the referendum process or portray Alberta as being unfairly treated within Canada. Smith said she has been briefed by CSIS and the RCMP and urged Albertans to be cautious about what they share online, particularly when the source of the content is unclear.
Alberta’s push to become a hub for artificial intelligence infrastructure ran into resistance this week as hundreds packed the province’s first town hall to press Technology and Innovation Minister Nate Glubish on the impact of data centres on power, water, the environment and surrounding communities. The tense meeting comes just days after the Alberta Utilities Commission rejected a proposed 1.4-gigawatt natural gas power plant that would have powered a data centre complex in Olds, ruling the site was too close to the surrounding community. The project had drawn significant local opposition over concerns ranging from noise and pollution to safety and property values.
In late July, the Alberta NDP launched a consultation tour starting in Red Deer where similar questions have been raised about whether regulation and public engagement have kept pace with the scale and speed of proposed development. The province, meanwhile, is trying to reassure Albertans that it can capitalize on what it says is between $100 billion to $200 billion in potential private investments. Glubish says the government is now considering setback requirements for data centres. With more town halls still to come, the challenge for the province will be convincing Albertans that it can effectively and responsibly regulate a rapidly growing industry it's trying to court.
Top Ontario Stories
Controversy over data centres is active in Ontario as well. Premier Doug Ford took his pitch to the Association of Municipalities of Ontario's annual conference in Ottawa this week. Ford is sticking with the data sovereignty framing, telling delegates the province can "deliver for communities across Ontario (...) while safeguarding people's information and keeping it out of President Trump's hands."
Municipal leaders were not entirely reassured. While Oakville stands alone as the only municipality to have actually enacted a moratorium, Mississauga's vote is scheduled for September 16 and Hamilton and Burlington are asking staff to study potential impacts. Across the province, municipal leaders are calling for more transparency on how the province’s Data Centre Playbook framework will actually be applied. Green Party Leader Mike Schreiner was direct in his criticism, requesting a province-wide pause and arguing the province's playbook offers "no specifics" on the systems it claims to favour.
Ford used the same AMO address to make a broader appeal to municipal leaders. He touted investments such as the $8.8-billion housing infrastructure partnership with the federal government and framed the $236-billion capital plan he called the largest in Canadian history. The premier also used the speech to highlight the Ring of Fire road and the recently announced Northern Shield Energy Corridor as critical infrastructure for extracting and transporting Ontario's resources, positioning both projects as answers to continued American tariff threats.
Following last week’s revelations that the Progressive Conservative Party spent nearly $3,000 on two Jamaican resorts in December 2023 to surveil Bonnie Crombie, the Ford government spent this week fending off a yet another travel scandal. Internal documents showed the premier's spring trade mission to Texas cost taxpayers over $93,000. Interim Liberal Leader John Fraser called the three-day swing through Austin, Dallas and Houston a "dog and pony show," and NDP Leader Marit Stiles called it "the most expensive trip to Texas I've ever heard of." Despite the cancellation of Ford’s meeting with Texas Governor Greg Abbott, the premier’s office justified the hefty bill by claiming Ford met with more than 10 major employers to "lay the groundwork for billions of dollars of new investment."
The New West Team is ready to guide clients through this uncertain time in Canadian politics.
