Trade war, meet B7

Politico

15-05-2025

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→ Trade war talk and bilat banter as B7 leaders gather in Ottawa.
→ The first Liberal MP to publicly call for Trudeau's resignation has zero regrets.
→ MARK CARNEY's ministry makes its first impressions in the West Block gauntlet.
Trade war
HI, FRIENDS — As Industry Minister MÉLANIE JOLY reintroduced herself to a gala's worth of business leaders last night at the Canadian Museum of History, Finance Minister FRANÇOIS-PHILIPPE CHAMPAGNE was upstairs wrapping up a 30-minute chat with DONALD TRUMP's top envoy in Ottawa.
Champagne's extended couch convo with Amb. PETE HOEKSTRA was tucked away from prying eyes two floors above the gala floor (but within view of a gaggle of journalists).
The bilat followed the finance minister's remarks a few minutes earlier at the opening reception for the B7 Summit — a business-focused G7 subgroup that feeds into June's leaders' confab.
— Confab o'clock: Over the next two days at the National Arts Centre, the B7 set will gab about shared priorities in an uncertain world. They'll publish an extensive communique later this morning.
— Word choice: Joly framed her shift to industry from foreign affairs in trade-war terms.
'I'm leaving the diplomatic front, and therefore the causes of this trade war, to go much more on the economic front, which are the consequences of this war.'
→ A reminder: Hoekstra was in the building at the time — maybe not within earshot.
— We caught that, too: Joly noted that one of her final jobs as foreign minister was marshaling a successful communique at the G7 ministers' meeting in Charlevoix, Quebec — 'which, trust me, was certainly a challenge.'
— Lay it on thick: Champagne, speaking without notes at the reception, gave away his opening lines when G7 finance ministers meet in Banff on May 20: 'The first thing I want to say to my colleagues next week is that the business world is with us,' he told the room.
Then he ribbed Canada's G7 sherpa, CINDY TERMORSHUIZEN, who stood offstage.
'I know the speech has not been written yet by our great sherpa, but I will deviate from the speech that you will provide me, and my first words will be to thank the B7 and the great work that you're going to be doing,' Champagne said. 'Thank you to all of you, because your work matters more than ever.'
— Spotted in the room: Nunavut Premier P.J. AKEEAGOK, Former Liberal MP and Carney hockey teammate DAVID LAMETTI, AI Minister EVAN SOLOMON, CIBC vice chair LISA RAITT, Business Council senior adviser LOUISE BLAIS, former Conservative Leader ERIN O'TOOLE and top diplomats from Mexico, Italy, India, the EU, Australia, Germany and South Korea.
Where the leaders are
Still nothin' but crickets.
CONVERSATION STARTER
REDEMPTION SONG — 'I'm going to kill it!' WAYNE LONG says of his new gig as secretary of state for Canada Revenue Agency and financial institutions.
Stoked is an understatement for Long's vibe. Six months ago, the New Brunswick MP was preparing to leave political life after nine years in the Liberal caucus. Three months ago, he updated his resume and started looking for a job.
'I felt on the outside. I really wanted to get out,' Long told Playbook in an interview at the Met, surrounded by joyous Liberals, and hours after his swearing-in to MARK CARNEY's ministry.
— Life of the party: Last June, Long was the first Liberal MP to publicly call on former Prime Minister JUSTIN TRUDEAU to resign. For most of the summer, he remained the only sitting Liberal MP to do so.
'The longer you're in politics, the more insular you become. And the people around [Trudeau] did him a disservice,' Long told us. 'I called it out, and I think history will show that I was right.'
— YOLO: Long doesn't regret being so vocal. 'Those who cast me as a torpedo to the party? I would argue that I saved the party. I saved the party from itself,' he said.
Long did note a commitment to Cabinet confidence that he swore an oath to protect.
— Pinch-me moment: In his wildest dreams, Long says he never imagined serving the current prime minister, especially after leading an effort to remove the previous one.
'Surreal. I mean it's been a 10-year journey to actually get into the Cabinet. I'd given up hope probably five years ago that that would actually happen,' Long said. (For the record: Long is a member of the ministry, not the Cabinet.)
'To walk up the walkway towards Rideau Hall, MÉLANIE JOLY beside me. I'm like, 'Oh my god, this is actually happening.' I'm thrilled. I'm privileged, I'm honored, I'm excited.'
— Life-changing call: On Saturday, Long's phone rang at 10:45 a.m. The PM's first words: 'I want you on my team.'
Long says Carney was fulfilling a promise made months earlier.
Before Carney decided to run for Liberal leader, he phoned Long and his wife Denise, asking the three-term MP to stay in politics. After sleeping on it, Long called Carney with a message: 'If you're in, I'm in.'
— New boss: Long will be serving under Finance Minister FRANÇOIS-PHILIPPE CHAMPAGNE. 'We're very similar. We're high energy, we're excitable, we're passionate and we're hard workers,' Long said.
— Getting to work: 'I think we have an 18-month window of opportunity to show Canadians that we can build, that we can build energy corridors, that we're not afraid to relook and transform everything we've done as a country,' Long said.
WORTH NOTING — Champagne was asked about the timing of the federal budget on Wednesday afternoon. He told reporters to expect a Fall Economic Statement. 'Take it step by step,' he said. 'Canadians understand that.'
He refused to explain Cabinet's rationale for skipping past a budget this spring, but he laid out the broad strokes of a three-point plan for the government's first months in office: unveil a 'middle-class' tax cut, deliver a throne speech, then prepare a FES.
'There is no roadmap forward, no economic vision, and no willingness to lead,' Conservative Leader PIERRE POILIEVRE said in a statement. 'This is not the leadership Mark Carney promised — it's abandonment.'
LISTEN UP, OTTAWA
FRICTION AHEAD — STEVEN GUILBEAULT offered no reassurance to Albertans with his first post-election take on new pipelines — the sort of nation-building infrastructure that could maybe, possibly improve a deep-freeze in the Alberta-Ottawa relationship.
— On the record: Speaking with reporters outside the Cabinet room, Guilbeault pumped the brakes. 'Remember that we bought a pipeline, Trans Mountain, and that is only used right now at about 40 percent of capacity,' said the former environment minister now responsible for Canadian identity, culture and official languages.
'Before we start talking about building an entire new pipeline, maybe we should maximize the use of existing infrastructure.'
The suggestion landed with a thud in the land of oil and gas.
— Proceed with caution: That's how the Business Council of Alberta greeted JULIE DABRUSIN's appointment as minister of environment and climate change. Dabrusin, a former parliamentary secretary to Guilbeault, cut her teeth in Trudeau's climate policy.
Premier DANIELLE SMITH's chief of staff, ROB ANDERSON, was blunt about Dabrusin's elevation: 'Fire … meet gas,' he posted online. Nor did Smith hide her dismay.
The premier is calling on Dabrusin to disavow Guilbeault's remarks.
The business lobby was more diplomatic.
Alberta's industrial sector will watch Dabrusin's 'first actions closely,' the BCA said in a statement. 'We will be looking to see if her leadership is willing to take policy in a more pragmatic and less ideological direction.'
The business council had kinder words for Energy Minister TIM HODGSON ('He brings considerable economic and market credentials, along with real energy sector experience') and DOMINIC LEBLANC on 'one Canadian economy' and Canada-U.S. trade ('a good choice for these two significant files, given his high profile and proven track record').
— Calgary MIA: The BCA said Western representation in Cabinet 'appears somewhat light' — pointing to Calgary MP COREY HOGAN's absence from the table.
→ On balance: 'We had called for a positive initial signal on the economy, energy and natural resources, and this Cabinet, on balance, sends that positive signal. We will be closely watching for pragmatic policy development and a balanced representation of Western interests.'
TALK OF THE TOWN
FIRST IMPRESSIONS — It's early days for new ministers in the Ottawa fishbowl.
Wednesday offered a test for those willing to accept it: speaking to reporters on the way in and out of their first Cabinet meeting.
Here's what we picked up in the hallway:
→ BUCKLEY BELANGER's eight years of provincial Cabinet experience in Saskatchewan showed as he scrummed with reporters. Belanger, a rookie MP and secretary of state, took questions on Canadian unity and the future of pipelines with relative ease.
Still, he's new to the Hill. As he wrapped up his scrum, Belanger asked a question we all pondered once: 'Where's the washroom?'
→ ADAM VAN KOEVERDEN, the Olympic medalist who is no stranger to the House of Commons but only a day in as Carney's pointman on sport, was far more tentative. 'I think it's early, you know?' he said during a brief exchange with the reporter pack about the difference between Carney and Trudeau's leadership styles.
→ NATHALIE PROVOST, the secstate for nature, stopped for a minute. She soon learned an early lesson in evasion: the elevator in front of the scrums does not guarantee a quick exit. Provost called the lift before wisely opting for the nearby staircase.
→ EVAN SOLOMON, the longtime broadcaster paid to talk for a living, managed to leave Cabinet without saying a word to reporters. The minister for artificial intelligence — and first-time lawmaker — knows most of the pack. How long can he resist a little banter?
→ STEVEN MACKINNON, once again the government's House leader, showed a bit of rust on his way out. MacKinnon greeted only National Post reporter ANTOINE TRÉPANIER as he strode past the pack. Only one problem: Trépanier was nowhere to be seen. MacKinnon sheepishly acknowledged his error. First-day-back vibes.
For your radar
MIND YOUR MANNERS — The PM created a stir across the pond with an unapologetic observation of the U.K.
In an interview with Sky News, Carney said Canadians 'weren't impressed' that Britain offered DONALD TRUMP a historic second state visit. 'It was at a time when we were being quite clear about the issues around sovereignty,' he said.
— Shrug it off: U.K. Cabinet Office Minister PAT MCFADDEN paid little attention to the remarks, POLITICO's NOAH KEATE reports.
— Speed it up: The PM hinted that his government will meet its NATO defense spending benchmark sooner rather than later. Carney has pledged to spend 2 percent of its GDP on defense by 2030 — two years earlier than JUSTIN TRUDEAU's target date.
Asked if that timeline will accelerate, Carney said: 'It's a dynamic situation, let's put it that way.'
MORNING MUST-CLICKS
— The Globe's Queen's Park bureau reports that Premier DOUG FORD has pledged that today's Ontario budget will feature infrastructure spending, not cuts, to battle U.S. tariffs.
— Industry Minister MÉLANIE JOLY says Honda Canada's president and CEO assured her that 'no jobs will be lost,' CATHERINE MORRISON of The Canadian Press reports.
— From KARYN PUGLIESE at APTN: 'Did MARK CARNEY promise First Nations a veto – or was it a slip?'
— Decades of insufficient funding, painfully slow procurement and declining numbers of troops have resulted in what some have described as Canada's 'boutique' military — capable of niche operations and deployments, but not much more, CHRIS LAMBIE reports in the National Post.
— MARK MCQUEEN, once an adviser in BRIAN MULRONEY's PMO, serves up a few suggestions for the Conservatives.
— 'I had thought that Carney was super-smart and clear-headed about all things economic, but he has drunk the AI poison,' TIM BOUSQUET writes in the Halifax Examiner.
PROZONE
For Pro subscribers, our latest policy newsletter by SUE ALLAN: Making internal trade 'sexy' again.
In other news for Pro readers:
— 3 signs that Trump might quit the world's oldest climate treaty.
— Trump's Saudi deals highlight Big Tech's energy sway.
— USDA, reversing course, will post climate information for farmers.
— Rich nations reap most funding for geoengineering research.
— India, Japan, UK object to Trump's steel and aluminum tariffs at WTO.
PLAYBOOKERS
Birthdays: HBD to Liberal MP FAYÇAL EL-KHOURY (70!), former MPs ANTHONY ROTA and BRAD TROST, former Sen. PATRICIA BOVEY and Cardus executive vice president RAY PENNINGS.
HBD +1 to Conservative MP SHELBY KRAMP-NEUMAN.
Spotted: Former Prime Minister STEPHEN HARPER on stage with U.K. Conservative Leader KEMI BADENOCH this morning at IDU Forum 2025 in Brussels.
Noted: The PM is heading to Rome on Friday to attend Pope Leo's inaugural Mass.
Ontario Premier DOUG FORD and Manitoba Premier WAB KINEW inked a deal to tear down interprovincial trade barriers, and boost the flow of goods and workers between the two provinces.
Movers and shakers: IAN BRODIE is joining New West Public Affairs as a senior adviser. Liberal MP MARK GERRETSEN was named chief government whip.
Got a document to share? A birthday coming up? Send it all our way.
TRIVIA
Wednesday's answer: LEONARD MARCHAND was the first Indigenous Cabinet minister.
Props to ROY DERRICK (Marchand's former chief of staff!), ELIZABETH MAY, ALESSIA PASSAFIUME, PATRICK DION, TIM MCCALLUM, MARCEL MARCOTTE, JOHN PEPPER, GREG MACEACHERN, ELIZABETH BURN, PAUL PARK, STEPHANE BERIMBERE, JENN KEAY, MALCOLM MCKAY, DARRYL DAMUDE, ROBERT MCDOUGALL and KOBY GOTTLIEB.
Props +1 to ROBERT MCDOUGALL.
Today's question via Playbook reader BOB ERNEST: Which secretary of state has a dog named Cairo that is actually from Egypt?
Send your answer to [e-mail]