Donald Trump's envoy suggests talks ‘over the next couple of weeks' will address the Canada-U.S. relationship
OTTAWA — Donald Trump's new emissary to Ottawa struck a friendly tone toward his Canadian hosts in a speech at a business summit on Friday, where he dodged any direct reference to the trade war his president launched and alluded to discussions about how Canada and the U.S. can 'move forward' with their relationship.
In a speech at the B7 Summit of business groups from G7 countries — a private sector preview of next month's political summit of wealthy democracies in Kananaskis, Alta. — U.S. Ambassador Pete Hoekstra spoke of his family connections to Canada and noted how his Dutch parents were 'liberated by Canadians' in the Netherlands during the Second World War.
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Toronto Sun
34 minutes ago
- Toronto Sun
GOLDSTEIN: Carney can't fix Canada's underperforming economy on his own
Get the latest from Lorrie Goldstein straight to your inbox Prime Minister Mark Carney delivers a press conference at Rideau Hall after his cabinet's swearing-in ceremony on May 13, 2025 in Ottawa. Photo by Andrej Ivanov / Getty Images Prime Minister Mark Carney's pledge to make the Canadian economy the strongest in the G7 is the equivalent of attempting to turn around the Titanic before it hits the iceberg. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account An indication of the enormity of this task is to look at the performance of the G7 countries in real Gross Domestic Product (GDP) per capita, which measures economic output per person, adjusted for inflation, and is a widely accepted metric of a nation's prosperity and standard of living. Low economic growth as measured by real GDP per capita has been a longstanding problem in Canada. Under Carney's predecessor, Justin Trudeau (who appointed Carney to chair his economic growth task force in September 2024), Canada recorded the worst record of economic growth since the government of R.B. Bennett in the depths of the Great Depression. According to Jake Fuss, director of fiscal studies for the Fraser Institute writing in The Hub last year, Canada's real GDP per capita grew by 1.9% in the Trudeau years. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. That was lowest in the G7, which includes the U.K., Germany, France, Italy, Japan and, most alarmingly, the U.S., our largest trading partner, where real GDP per capita grew by 14.7% during the same period. University of Calgary economist Trevor Tombe, also writing in The Hub last year, noted real GDP per capita in the U.S. is now almost 50% higher than in Canada – unprecedented in modern history. Read More In the Liberals' 2022 budget, then-finance minister Chrystia Freehand warned that unless this trend is reversed, 'the Organization for Economic Co-operation and Development projects that Canada will have the lowest per-capita GDP growth rate among its (38) member countries' from 2020 to 2060. This advertisement has not loaded yet, but your article continues below. Carney's announcement of proposed legislation on Friday – which he wants passed before Parliament adjourns from the summer – to reduce federal barriers to interprovincial trade, increase labour mobility and streamline government approvals for nation building infrastructure projects, are all aimed at increasing economic growth. But they all depend on co-operation by and among the provinces. And the reality is that decades of inaction on these issues has cost the Canadian economy an estimated $200 billion annually, increased the cost of goods and services to Canadians by up to 14.5% and reduced GDP growth by up to 8% annually. At the meeting between Carney and Canada's premiers and territorial leaders last week in Saskatoon to address these issues in the face of the threat posed to the Canadian economy by U.S. President Donald Trump's tariffs, all the participants paid lip service to working together on these issues. This advertisement has not loaded yet, but your article continues below. A supply depot servicing the Keystone XL crude oil pipeline lies idle in Oyen, Alta., Feb. 1, 2021. Photo by Todd Korol / REUTERS / FILES But the one premier not present – B.C.'s David Eby, who was on a trade mission to Asia – promptly rejected any new pipeline crossing his province's territory, as did many Quebec politicians when it comes to their province. Any new pipelines will also be opposed by environmental organizations and some (although not all) Indigenous groups who, while they do not have veto power over such projects, must be meaningfully consulted under Canadian law. Alberta Premier Danielle Smith has cited the enormous economic damage caused by Canada's failure to build pipelines. Had the Northern Gateway, Energy East and Keystone pipelines been built (Keystone was killed by then-U.S. president Barack Obama), she said, Canada would be producing 2.5 million more barrels of oil per day. This advertisement has not loaded yet, but your article continues below. 'That's $55 billion a year worth of GDP value, which is worth $17 billion to my government alone and about an equal amount to the federal government.' RECOMMENDED VIDEO The Carney government does have more direct control of some issues it can move on to boost Canada's economic growth. For example, it can introduce taxation policies that encourage businesses to invest in new technologies that boost productivity, as well as increase competition. It can lower Canada's immigration levels so that increases in population do not exceed the rate of economic growth, which reduces GDP per capita. It can reduce government spending. On that issue, Carney says he intends to reduce the growth rate in the operational costs of the federal government under Trudeau from 9% annually to less than 2%. But Carney's election campaign platform also outlined $130 billion in new spending over four years with total deficits of $224.8 billion. While Carney says most of that will be spent on infrastructure, it's 71% higher than the $131.4 billion in deficit spending the Trudeau government predicted during the same period in its fall economic statement in December 2024. Finally, of course, Carney needs to negotiate a deal on tariffs with Trump. lgoldstein@ Olympics Sunshine Girls NHL Ontario Sunshine Girls
Toronto Sun
an hour ago
- Toronto Sun
U.S. ambassador says Canadians facing device searches, detainment 'not a pattern'
Published Jun 07, 2025 • 3 minute read Peter Hoekstra, U.S. President Donald Trump's nominee to be U.S ambassador to Canada, attends a Senate Foreign Relations committee nomination hearing in the Dirksen Senate Office Building on March 13, 2025 in Washington, DC. Photo by Anna Moneymaker / Getty Images OTTAWA — The American ambassador to Canada is pushing back on Ottawa's travel advice, saying his country doesn't search phones at the border and arguing some Americans travelling here are having a tough time. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account 'We welcome Canadians to come in and invest, to spend their hard-earned Canadian dollars at U.S. businesses,' U.S. Ambassador Pete Hoekstra told The Canadian Press in an interview Friday. 'If a Canadian has had a disappointing experience coming into the United States, I'm not denying that it happened, but I'm saying it's an isolated event and it is not a pattern.' In April, Ottawa updated its advice to Canadians travelling to the United States to warn them about the possibility they might be detained if denied entry. 'Expect scrutiny at ports of entry, including of electronic devices,' reads the new guidance. There have been reports of Canadians facing intensified scrutiny at the border, having phones searched and, in some cases, being detained. Plan your next getaway with Travel Time, featuring travel deals, destinations and gear. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Hoekstra insisted concerns about device searches are not grounded in reality. 'Coming to the U.S., that's a decision for the Canadians to make. Searching devices and all of that is not a well-founded fear. We don't do that. America is a welcoming place,' he said. He said some Americans have expressed similar concerns about Canada. 'I've heard that from Americans coming into Canada as well, OK? Saying, 'You know, we've not received a warm reception when we've gotten to Canadian customs,'' he said. When asked if these reports from American travellers involve arbitrary phone searches and lengthy detainment, Hoekstra said there are consular cases of Americans complaining to the embassy about the Canada Border Services Agency. This advertisement has not loaded yet, but your article continues below. 'We've said, 'OK this may have been an isolated event. There may have been a Canadian border person who was having a bad day, and thought they'd take it out on, you know, somebody across the border,'' he said. In a statement, the CBSA said its officers follow a code of conduct and the federal ethics code that both require them to treat everyone equally, and the agency investigates any complaints of mistreatment. 'Employees are expected to conduct themselves in a way that upholds the values of integrity, respect and professionalism at all times,' wrote spokeswoman Karine Martel. 'Treating people with respect, dignity and fairness is fundamental to our border services officers' relationship with the public and a key part of this is serving all travellers in a non-discriminatory way.' This advertisement has not loaded yet, but your article continues below. Hoekstra said travel to the U.S. is up to individuals. 'If you decide that you're not going to come down or whatever, that's your decision and you're missing an opportunity. There are great things to see in America,' Hoekstra said. He also noted the case of CNN journalist Christiane Amanpour, who recently said she prepared to visit the U.S. last month as if she was 'going to North Korea' — with a 'burner phone' that didn't carry any personal information — only to experience a warm welcome. 'It's like, (let's) get past the rhetoric and let's look at the real experiences that people are having here,' Hoekstra said. Airlines have been cutting flights between Canada and the U.S. due to a slump in demand, and Flight Centre Travel Group Canada reported a nearly 40 per cent drop in flights between the two countries year-over-year in February. A survey in early May conducted by Leger Marketing for the Association for Canadian Studies found 52 per cent of respondents feel that 'it is no longer safe for all Canadians travelling to the United States,' with 29 per cent disagreeing and 19 per cent saying they were unsure. Roughly the same proportion said they personally feel unwelcome in the U.S. LGBTQ+ groups have opted against attending World Pride events in Washington and United Nations events in New York, citing scrutiny at the border as the Trump administration scales back protections for transgender and nonbinary people. Olympics Sunshine Girls NHL Sunshine Girls Toronto & GTA
Toronto Sun
an hour ago
- Toronto Sun
As his trade war faces legal pushback, Trump has other tariff tools he could deploy
Published Jun 07, 2025 • 3 minute read President Donald Trump speaks during a meeting with Republican governors at Mar-a-Lago, Thursday, Jan. 9, 2025, in Palm Beach, Fla. Photo by Evan Vucci / THE ASSOCIATED PRESS WASHINGTON — U.S. President Donald Trump's tariffs are facing legal headwinds for the first time — but he has other tools he could deploy in his quest to realign global trade. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account A federal appeals court is still deciding whether there will be a stay on Trump's universal tariffs enacted through the International Emergency Economic Powers Act of 1977, usually referred to by the acronym IEEPA. The U.S. Court of International Trade ruled the duties were unlawful last month. IEEPA is a national security statute that gives the U.S. president authority to control economic transactions after declaring an emergency. It had never previously been used for tariffs. Trump declared emergencies at the United States' northern and southern borders linked to the flow of fentanyl and migrants in order to hit Canada and Mexico with economywide tariffs. He later declared an emergency over trade deficits to impose his retaliatory 'Liberation Day' duties on most nations. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The trade court found Trump exceeded presidential powers by using IEEPA to broadly implement the duties. The Trump administration quickly appealed the decision and the White House said it would take the case to the Supreme Court. Following the ruling, White House Economic Council Director Kevin Hassett said he was confident the court ultimately would decide in Trump's favour. Hassett said that if it doesn't, 'we'll have other alternatives that we can pursue as well to make sure that we make American trade fair again.' While the U.S. Constitution gives power over taxes and tariffs to Congress, Greta Peisch, the former general counsel for the Office of the U.S. Trade Representative, said it passed laws over the last century that allow the president some control in certain situations. Trump is now looking to use those laws — some of them for the first time. This advertisement has not loaded yet, but your article continues below. The president may be considering Section 338 of the Tariff Act of 1930. It allows a president to hit countries with tariffs of up to 50 per cent if the country 'is treating products of the United States disfavourably, compared to products of another foreign country,' said Peisch, a partner at Wiley Rein in Washington, D.C. Section 338 has never been used by a president before and Peisch said it might be difficult for the administration to make a case for it. Trump also might look to Section 301 of the Trade Act of 1974, which allows a president to take trade actions if an investigation finds a trading partner's policies are unreasonable and discriminatory. Trump used this law during his first administration to impose tariffs on some Chinese imports and European Union goods. This advertisement has not loaded yet, but your article continues below. But Section 301 requires country-by-country investigations of trade policy before a tariff can be imposed — investigations that could take weeks or months and would include a period for public comment. That certainly would slow down Trump's efforts to target the world with tariffs. If the president is looking for speed, Peisch said, he might try to use Section 122 of the Trade Act of 1974 — another law that has never before been used. Section 122 allows a president to implement tariffs of up to 15 per cent to address large and serious United States balance-of-payments deficits. But those duties can only stay in place for a maximum of 150 days before they need Congressional approval to continue. That reduces Trump's leverage if his goal is to pressure countries to sign trade deals — those countries could simply decide to wait the president out. Trump also has said tariffs will help pay down the deficit; the short-term Section 122 power is unlikely to work as a long-term revenue strategy. Ultimately, Peisch said, none of the replacement statutes could easily build Trump's universal tariff wall around the United States. 'Nothing is a great fit without a lot of work,' she said. 'So I think it's potentially going to be a challenge.' Olympics Sunshine Girls NHL Sunshine Girls Toronto & GTA
