Weekly Roundup - January 16, 2026
Top Federal Stories
Prime Minister Carney concluded his first official visit to China by a Canadian leader in over eight years with what he called a "preliminary but landmark" trade agreement. Canada will permit up to 49,000 Chinese electric vehicles into the domestic market annually at a reduced tariff of 6.1 percent. In return, China has agreed to lower its tariffs on canola seed to 15 percent by March and suspend retaliatory "anti-discrimination" tariffs on Canadian canola meal, lobster, crab, and peas through at least the end of the year. Canola oil was not mentioned.
The deal addresses a dispute that began when the Trudeau government imposed a 100 percent tariff on Chinese electric vehicles in line with tariffs implemented in the European Union and the United States to protect domestic auto manufacturing. China retaliated in early 2025 with tariffs on various Canadian agricultural products, most notably canola oil at 100 percent. The prairie provinces were especially hard hit by these tariffs, particularly Saskatchewan, which prompted Premier Moe to travel to Beijing alongside Carney to participate in the deliberations.
Carney framed the agreement as part of a new partnership built on what he described as "value-based realism," where the relationship would be pragmatic and focus on areas of mutual interest. Carney stated that he raised human rights concerns in his meeting with President Xi Jinping, but acknowledged that Canada must take the world as it is, rather than as it might wish it to be.
The China trip also produced a five-year memorandum of understanding between British Columbia, the federal government, and China on integrating Canadian lumber into Chinese urban renewal and rural development projects. China was the third-largest export market for Canadian forestry products in 2024.
Meanwhile, President Trump continued casting doubt this week on the future of free trade between Canada, Mexico, and the United States. Speaking at a Ford plant on Tuesday, Trump described the USMCA as "irrelevant" to American interests and said he does not care whether the agreement survives its mandatory review this year. Trump maintained that Americans do not need Canadian products and have sufficient natural resources of their own. The review will require each of the three signatory countries to decide whether to renew the agreement for another 16 years, trigger annual reviews, or withdraw from it completely. Dairy supply management tariff quotas, softwood lumber exports, and digital regulation will be heavily scrutinized during the review.
Back at home, Carney met with coastal First Nation leaders to ease tensions that arose last fall after the release of the Alberta-federal MOU. Coastal First Nations were unhappy about not participating in talks between Alberta and the federal government. Coastal First Nations president Marilyn Slett has said members do not support a pipeline to the Pacific or any suspension of the oil tanker ban that protects the northern coast. Despite this, Premier Smith has indicated her government will submit a pipeline proposal to the Major Projects Office this summer and recently urged Carney to approve the project by fall, alluding to President Trump’s interest in developing Venezuela’s natural oil reserves.
In other news, Supreme Court Justice Sheilah Martin announced she will retire on May 30th after serving 8 years on the Supreme Court. Chief Justice Richard Wagner praised her contributions to Canadian jurisprudence and her commitment to education and public engagement throughout her tenure on the bench.
Top Alberta Stories
As Calgary finally lifts all water restrictions, the Alberta government has launched a formal review into the city's repeated feeder main failures, requesting extensive documentation dating back more than two decades. The Bearspaw feeder main was restored to full service on January 16th, but the solution appears to be a temporary one, with Mayor Farkas stating the patched-up main must be replaced quickly to avoid future issues.
Provincial intervention by Municipal Affairs Minister Dan Williams comes after City Council declined to remove CAO David Duckworth, a decision that has intensified scrutiny of municipal governance and called into question the efficacy of council’s administrative oversight. Columnists and observers have framed the province’s move as both a response to infrastructure risk and a signal of impatience with City Council. The review has reopened debate about whether Calgary’s water failures reflect isolated technical issues or deeper governance and accountability gaps at City Hall.
Supporters gathered in central Alberta as signature collection for a petition calling for a referendum on Alberta independence got underway. According to Alberta’s Citizens Initiative Act, only an individual voter can start a petition, which ensures the process follows election and advertising rules. Separatist organization Stay Free Alberta, the main organizing arm of this initiative, is pursuing an ambitious target as the petition needs 177,732 signatures by May 2, 2026.
Alberta is now accepting applications from private online gambling operators as it moves to launch a regulated iGaming market. This move comes after the province successfully passed the iGaming Alberta Act last May. Officials say the new rules aim to shift Albertans away from unregulated offshore sites, improve oversight, and update gaming to match Alberta’s reputation for practical, market-focused policies. Under these new rules, gambling companies like BetMGM and FanDuel, which can only currently operate in Ontario, would have access to the Alberta gaming market.
Hospital and Surgical Services Minister Matt Jones has announced a fatality inquiry into the death of a patient who waited hours for care at an Edmonton hospital. The tragedy has placed renewed focus on the ongoing pressures facing Alberta’s acute care system, highlighting the need for patient safety and accountability. Separately, Chief Medical Officer of Health Dr. Vivien Suttorp said the respiratory virus season seems to have peaked. However, hospitals remain over capacity with the province continuing to add triage doctors and keeping surge measures in place.
This week, a Montana state senator accused Alberta of unfairly limiting electricity imports. Alberta officials denied this, stating grid reliability rules are the same for all provinces and do not target U.S. suppliers.
Top Ontario Stories
News of a deal between Canada and China to lower tariffs on Chinese Electric vehicles and Canadian agricultural exports has Premier Doug Ford at the centre of a brewing federal-provincial disagreement. Even before the announcement, Ford had signalled that he was "100 per cent dead against" any deal that would allow Chinese EVs into the Canadian market.
The Premier warned that the deal to slash the 100 per cent tariff on Chinese EVs is potentially devastating for Ontario's manufacturing sector. His opposition reflects concern about Ontario's automotive industry, which has attracted billions in recent investment for EV and battery production. Ford argues that removing the surtax on Chinese EVs will undermine these investments and put thousands of manufacturing jobs at risk. He pointed to substantial commitments from companies like Honda, Stellantis, and Northvolt, suggesting federal tariff policy reversals could jeopardize Ontario's position in the North American EV supply chain.
Federal-provincial tensions over trade policy come at a particularly delicate moment, with President Trump's trade threat looming large over CUSMA negotiations later this year. Carney’s China deal exacerbates interprovincial tensions; in contrast to Ford’s criticism, Premier Scott Moe applauded the trade deal to reduce Chinese tariffs on Canola, calling it a “very positive signal.”
Chinese EVs aren’t the only trade irritant for Ontario. Ford's threat to follow through on the removal of Crown Royal whisky from LCBO shelves drew criticism from Manitoba Premier Wab Kinew. Kinew warned that Ford's approach undermines Canadian unity at a critical moment when provinces should be presenting a united front against American trade pressure. Speaking to reporters this week, Premier Ford says he spoke with Kinew, and that he respects that the Premier is doing his duty to protect jobs in Manitoba, but that he is protecting jobs in Ontario and has no intention of backing down. The Manitoba plant employs nearly 80 workers, while closure of the Ontario plant will impact nearly 200 employees.
Bonnie Crombie is officially out as Liberal Party leader after she announced her resignation this week. Crombie, who led the party since its December 2023 leadership convention, cited the demanding nature of opposition leadership and a desire to spend more time with family as the primary factors in her decision to step down. She had previously committed to staying on until a new leader had been selected, following the party’s leadership review. Her resignation comes after the Liberals failed to make significant electoral gains under her leadership, remaining in third-party status at Queen's Park, though the party managed to regain official party status.
The Liberal caucus will now need to select an interim leader while the party organizes what will be its second leadership race in just over two years.
The Ford government launched a lawsuit against Keel Digital Solutions, seeking to recover more than $25 million in allegedly improperly obtained payments. Attorney General Doug Downey confirmed the government's lawsuit aims to recover funds from Keel Digital Solutions, the embattled company that is also at the centre of an OPP investigation. The move comes after months of scrutiny over the administration of the Skills Development Fund and questions about oversight that allowed the payments to proceed. The lawsuit alleges Keel Digital Solutions obtained funding through misrepresentation and breach of contract.
Upcoming Events Calendar
January 29-31, 2026: Conservative Party of Canada National Convention
March 29, 2026: Federal NDP Leadership Race Results Announcement
