Weekly Roundup - August 8, 2025
Top Federal Stories
Prime Minister Mark Carney convened emergency virtual meetings with his cabinet and provincial premiers on August 6 following Trump's imposition of 35 per cent baseline tariffs on Canadian goods not covered by the Canada-United States-Mexico Agreement (CUSMA). The meetings exposed differences of opinion over response strategies, with Ontario Premier Doug Ford demanding immediate "dollar for dollar, tariff for tariff" retaliation while Saskatchewan Premier Scott Moe urged Ottawa to dial down retaliatory tariffs, arguing Canada remains largely protected under the current Canada-US-Mexico Agreement.
So far, the Carney government’s approach has been one of strategic restraint over automatic reciprocal measures. "We've always said we will apply tariffs where they had the maximum impact on the United States and minimum impact in Canada," the Prime Minister told reporters during a press conference in British Columbia.
Meanwhile, Foreign Affairs Minister Anita Anand and Finance Minister François-Philippe Champagne were on a diplomatic mission to Mexico City on August 5-6, meeting with President Claudia Sheinbaum and senior government officials. The visit represents a bit of a bilateral reset. Canada and Mexico have not always prioritized trade between the two countries, despite being partners in CUSMA.
The ministers met with representatives from banking, mining, aerospace, railway, pension, pharmaceutical and agri-food sectors, with Champagne describing the effort as an opportunity to provide "more certainty and diversify our export markets" through partnerships with countries "we can trust."
International Trade Minister Maninder Sidhu simultaneously discussed his ambition to diversify Canada’s trade in South America, Southeast Asia, and Africa. Unlike predecessor Mary Ng, Sidhu says he favours "smaller delegations of companies" with "focus on specific sectors," announcing plans to visit Brazil soon to revive trade talks with the Mercosur trade bloc. Canada has 15 free trade agreements covering 51 countries offering "preferential access to over 1.5 billion consumers," but the minister noted Canadian businesses "could be doing a lot more to look beyond the U.S."
Conservative Leader Pierre Poilievre criticized Carney's handling of trade talks, arguing the Prime Minister had failed to deliver on the commitment to secure a trade deal with the United States by July 21 or August 1. He also said Ottawa should impose counter tariffs that are “narrow in scope” to limit the hardship for Canadians.
On August 5, speaking at Gorman Brothers Lumber sawmill in West Kelowna, B.C., Carney announced a support package for Canada's beleaguered softwood lumber industry. The $1.2 billion package includes $700 million in loan guarantees to address immediate financial pressures, $500 million in grants and contributions for product development and export market diversification, and $50 million for workforce training programs.
The announcement comes as combined anti-dumping and countervailing duties approach 35 per cent on Canadian softwood lumber imports into the United States. The Prime Minister suggested the soon-to-be-launched Build Canada Homes program, could prioritize Canadian lumber in residential construction.
Meanwhile, Carney held his third "major projects summit," this one with Métis leaders, aimed to advance economic transformation. The summit faced a notable boycott from the Manitoba Métis Federation, which refused participation due to inclusion of the Métis Nation of Ontario. The dispute between MMF and MNO highlights just one of the additional hurdles the Carney government faces when it comes to building support for the recently passed laws to fast-track major projects.
Additional tensions with the federal government emerged elsewhere as the Mohawk Council of Kahnawà:ke announced it is considering plans to impose road tolls on major highways crossing their territory. The move comes in response to the government’s attempt to find savings, with proposed 7.5 per cent cuts in 2026 rising to 15 per cent by 2028-29. The council argued cuts violate Section 15 Charter rights while maintaining provincial transfer payments.
There is no end in sight to Canada Post’s financial struggles as workers rejected the corporation's "final offers" in a government-mandated vote, which was meant to address the ongoing labour negotiation between Canada Post and its union. An Industrial Inquiry Commission report from Commissioner William Kaplan found the Crown Corporation was effectively bankrupt and needs substantial reforms to stay afloat.
In what is an ongoing challenge for the Carney government, industry tensions are high as five CEOs of major auto companies penned a letter to the Prime Minister warning of "serious damage" from federal zero-emission vehicle mandates. The letter, which was sent weeks after the Carney government was sworn in remains unanswered. The industry leaders noted EV sales had plummeted to just 6.5 per cent of total vehicle sales in March 2025, highlighting the gap between government targets of 20 per cent by 2026 and the current auto market.
Top Ontario Stories
The Ford government's contentious 401 tunnel proposal encountered fierce headwinds this week following revelations that civil servants had previously identified serious safety risks. According to documents, the government had quietly shelved a 2021 study that warned of "risks to public safety from impacts of the tunnel to Highway 401 such as potential for roadway collapse." The internal assessment cited "several financial and construction challenges," including labour shortages, market capacity issues, and financing difficulties. Civil servants also referenced ongoing Scarborough Subway Extension problems as cautionary evidence of tunneling under the highway, warning of "extensive settlement along the 401."
Premier Doug Ford dismissed those concerns, telling reporters, “times have changed” and the current proposal is a “fresh” start to address congestion in the GTA. At a press conference in Thornhill, Ford unveiled his tunnel vision: a 19.5-metre wide tunnel with three levels – eastbound traffic, westbound traffic, and transit – running from "Brampton and Mississauga in the west, to Markham and Scarborough in the east."
NDP Leader Marit Stiles called the tunnel a "ridiculous plan" driven by Ford's ego, while the Ontario Liberals want "full transparency" about economic benefits and environmental impacts. Meanwhile, Green Party Leader Mike Schreiner called it a "dangerous vanity project."
On the trade front, Premier Ford delivered a dire warning about the ongoing Canada-U.S. trade negotiations. Ford is predicting that President Trump would trigger early CUSMA renegotiation, rather than waiting for the scheduled 2026 review, warning the president is “coming at us hard,” and could "pull the carpet out from underneath us on CUSMA tomorrow with one signature."
In a CNN interview with Wolf Blitzer, Ford described Trump as "probably the most disliked politician in the world in Canada" and questioned American lawmakers' silence: "when I talk to the governors and senators and congresspeople, even Republicans totally disagree, but they're too scared to come out and say anything because the President will go after them."
Ford participated in a virtual meeting with Prime Minister Mark Carney and other premiers on August 6, expressing "100 per cent" support for the federal response while maintaining his push for dollar-for-dollar retaliatory tariffs.
The Premier pushed back on Ontario Superior Court Justice Paul Schabas, who struck down the government's bike lane removal plans. Ford called the ruling the "most ridiculous decision I've ever seen" and suggested it trampled on voters' rights. Ford confirmed his government would appeal the ruling and refused to rule out using the notwithstanding clause.
An ensemble of ministers were in Brampton to announce a $56.8 million nursing expansion aimed at training 2,200 new nurses by 2029. The announced funding is aimed at expanding the capacity of Ontario’s public colleges and universities to train healthcare providers.
Ontario’s large grocery stores chains are threatening to pull out of the province’s beer and wine sale program over an upcoming requirement that would force stores to collect empty bottles for recycling. Costco, Loblaw, Sobeys, Metro, and Walmart say they may return their alcohol sale licences “given the cost and operational complexities of managing alcohol returns.” The upcoming deposit-return requirement takes effect for all grocery stores on Jan. 1, 2026, a requirement government sources say retailers knew about when they applied for a license to sell beer and wine.
Top Alberta Stories
Memorandums of Understanding (MOUs) are often criticized as performative, but in partnership with Alberta and Saskatchewan, the Ontario Government put the words to work this week, issuing a request for proposals to explore a west-east energy corridor and new pipeline connecting Alberta’s oil, gas, and critical minerals to refineries and ports in southern Ontario.
The RFP comes exactly a month after Premier Danielle Smith and Premier Doug Ford signed two MOUs to get Ontario’s critical minerals and Western Canada’s oil and gas to new markets. Saskatchewan Premier Scott Moe later signed on to the agreement and the three are now assessing whether a new oil or gas pipeline across Ontario is technically buildable, commercially bankable, and socially licensable.
The RFP requires, “a comprehensive technical and commercial assessment of corridor options – including route optimization, port siting consideration, engineering and environmental parameters, Indigenous participation & equity strategies, capital and lifecycle cost analysis, risk-mitigation strategies, and adjacent development opportunities – to inform provincial decision-makers on the optimal pathway to enhance Ontario’s and Canada’s long-term energy security.”
While the government explores new ways to move its product to market, it continues economic advocacy in the U.S. Speaker of the Legislative Assembly, Ric McIver, along with MLAs Glenn Van Dijken, Chelsea Petrovic, and Nolan Dyck were in Boston this week for the National Conference of State Legislators. In a social media post Alberta’s Premier said she was grateful the group “showed up to remind U.S. leaders that open and tariff-free trade is essential to the strength of both our economies” citing that Alberta exported over $162 billion last year with 82 per cent of that being energy products.
With tariffs talks remaining unpredictable, Premier Smith is also promoting Alberta to Mexico during a trade mission that starts Sunday. The Premier will travel to Mexico City to meet with government officials, private sector and industry leaders to encourage new investment and trade with Alberta. This is the first official visit to Mexico by a Premier of Alberta since 2019. Mexico is the province’s fourth-largest bilateral trading partner and is one of Alberta’s fastest-growing export markets.
As the province looks for new partners, it’s also investing in innovative ways to maximize what’s under its feet. This week, the province announced up to $12.7 million from the industry-funded Technology Innovation and Emissions Reduction (TIER) program for three projects that harness Alberta’s underground geology to strengthen the electricity grid, safely store carbon, and extract critical battery metals. Together valued at $35 million, the projects span from the County of Newell in the south to Valleyview in the north and promise to create good-paying, skilled jobs while positioning Alberta as a leader in emerging energy technologies.
The investments include $5 million for Cache Power Corp.’s Marguerite Lake Compressed Air Energy Storage Demonstration Project, which will store excess electricity underground and release it back to the grid when needed; $3.9 million for LithiumBank Resources to advance its technology for extracting battery-grade lithium from deep brine aquifers in northern Alberta; and $3.8 million for Carbon Management Canada to pilot a cost-effective, real-time monitoring system for geological carbon storage.
New rules are cracking down on what the government is calling “predatory tow trucking practices.” Previously, the province had no specific penalties to address behaviour, such as towing vehicles without consent, not providing necessary information to vehicle owners and exploiting emotionally vulnerable individuals who have been involved in a collision. Starting today, there is a 200-metre exclusion radius around a collision scene prohibiting tow truck drivers or anyone directing tow trucks from pitching their services. Anyone who enters the exclusion zone without being invited to do so by select personnel will be subject to a $1,000 fine.
Transportation Minister Devin Dreeshen says the goal is to “protect Albertans from unethical behaviour, give drivers more control in a stressful moment, and help reduce insurance costs.” The Alberta Motor Association and Edmonton Police Service have both welcomed the move, noting that while most of the industry is professional and trustworthy, a small number of bad actors have been exploiting vulnerable drivers.
Ontario has already taken similar steps under its Towing and Storage Safety and Enforcement Act, which requires tow truck licensing, transparent pricing, and bans unsolicited approaches at accident scenes.
Upcoming Events Calendar
August 14, 2025: Alberta Next panel Edmonton town hall
August 18, 2025: Battle River-Crowfoot federal by
August 26, 2025: Alberta Next panel Fort McMurray town hall
August 27, 2025: Alberta Next panel Lloydminster town hall
September 12-14, 2025: Ontario Liberal Party AGM
September 15, 2025: House of Commons returns
October 20, 2025: Ontario Legislature returns
October 27, 2025: Alberta Legislature returns
January 29-31, 2026: Conservative Party of Canada National Convention
March 29, 2026: NDP Leadership Race Results Announcement
