Nation-builders, unite

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5 days ago

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→ MARK CARNEY has his right-hand man.
→ Carney and the premiers enter decision mode in Saskatoon.
→ What else we're watching: Parliament, interest rates and postal workers.
THE FIRST THING
RIGHT-HAND MAN — At long last, MARK CARNEY has a permanent chief of staff. MARC-ANDRÉ BLANCHARD, Canada's former top envoy at the U.N., starts in July.
Carney confirmed the hire on Sunday.
— CV scan: Blanchard served on JUSTIN TRUDEAU's transition team in 2015 and then repped Trudeau's government at the U.N. for a little more than four years. (He left that post shortly after Canada lost a bid for the Security Council.)
— Sounds like Carney: When Blanchard was honored by the Public Policy Forum in April, his remarks would've gone over well in the Prime Minister's Office. We've plucked three quotes from that speech delivered with some of Ottawa's top bureaucrats in the room.
→ 'To succeed in delivering faster, we need to remember that excellence in public policy does not require perfection. It requires progress, delivery and results.'
→ 'In today's world, with this climate, this economy, this global uncertainty, the real breakthroughs, the ones that will shape the next generation, will come when both sectors, public and private, start truly collaborating.'
→ 'There is no shortcut to trust. There is only the steady, honest, often uncelebrated, work of listening, of engaging with people who disagree with us, not thinking we know better, of standing in someone else's shoes, of doing the right thing and the right thing is often not theoretical perfection, but a good old Canadian compromise, even when it's hard.'
Trade war
TRUMPQUAKE — Canada's steel industry spent the weekend acclimating to new levels of anxiety after DONALD TRUMP told a crowd of steel workers near Pittsburgh on Friday that he would double tariffs on steel imports to 50 percent.
The Canadian Steel Producers Association warned that tariff hikes would 'create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border.'
— The official line: Canada-U.S. Trade Minister DOMINIC LEBLANC kept his powder dry over the weekend, confirming he had 'taken note' of Trump's escalation.
→ Elsewhere in tariffs: U.S. Commerce Secretary HOWARD LUTNICK told Fox News on Sunday that Trump will always find a way to keep tariffing trading partners, whatever courts might rule about the legality of his measures.
'He has so many other authorities that even in the weird and unusual circumstance where this was taken away, we just bring on another or another or another. Congress has given this authority to the president, and he's going to use it,' Lutnick said.
LISTEN UP, OTTAWA
DECISION TIME — Get used to hearing about 'nation-building.' That phrase will be all the rage at today's First Ministers' Meeting in Saskatoon, where Prime Minister MARK CARNEY and the premiers will hash out how to make the most out of Confederation.
Carney teed up the agenda-topper during his interview last week with CBC's DAVID COCHRANE: 'We need to move on these nation-building projects. So projects that bring Canada together, projects that diversify our economy, projects that help us export to new markets and really move this economy forward.'
— Wish lists: Early on in his time as PM, Carney asked premiers to submit priorities.
Last week, reporters got their hands on a May 23 briefing document that shows a 'national interest' bill is in the works to fast-track nation-building projects with a streamlined regulatory approval process. Ottawa consulted provinces on the legislation.
— Compare/contrast: Yukon Premier RANJ PILLAI is in the room today — his final FMM before he steps down as premier in a few weeks. We asked Pillai to compare former PM JUSTIN TRUDEAU's style at the premiers table to Carney's approach.
'Prime Minister Trudeau made time for a dialog to happen. So there was always a respectful exchange,' Pillai told us last week on the sidelines of CANSEC, the defense and security trade show that took over Ottawa's EY Centre.
'The difference now, which is more suited for me, is we are walking into meetings with a goal, and we're driving to an output. It's much more like a business meeting versus a political dialog. And that's the type of structure and platform we need now,' Pillai said.
— Action items: Pillai's first go-around with Carney in charge was at the Canadian War Museum on March 21 — days before the PM called an election.
'My reflection [was] there might have been some policy differences, but everybody was walking out of that meeting very impressed with the decisions that were being made in real time, and entrusting our own abilities, and the people around us, to work at that speed,' Pillai said.
— Pressure's on: Carney has set sky-high expectations for today's confab — a major test of his commitment to, and these are his words, 'Build, baby, build.'
→ Step by step: Alberta Premier DANIELLE SMITH and Ontario Premier DOUG FORD signed a memorandum of understanding meant to knock down trade barriers. The Globe reported that Ford also struck deals with Saskatchewan and Prince Edward Island.
TALK OF THE TOWN
NEXT UP: TRIVIA NIGHT — Our next Playbook Trivia Night is booked for this evening at the Met. Doors open at 7 p.m. First round starts at 7:30.
— We still have a few tables available. RSVP via this Google Form.
THREE THINGS WE'RE WATCHING
PARLIAMENT — The government won't fall this week, nor any time soon. Don't expect the kind of brinkmanship that eventually comes to shape most minority governments.
But we will get our first taste of voting patterns in a House of Commons only days removed from the pomp of a throne speech.
— Voting time: MPs will spend most of the week arguing about the priorities laid out in the speech delivered by the king.
Today, they'll vote on a Conservative motion tied to the throne speech debate that calls on the government to unveil an 'economic update or budget' before the chamber adjourns for the summer later this month.
Spoiler alert: Liberals are waiting for the fall for their big budget reveal. They won't side with ANDREW SCHEER's crew on this one.
— Opposition day: The House will debate the government's main estimates on Thursday — a spending package that requires parliamentary approval in order for the federal supply of money to keep flowing.
Which means the opposition get to introduce a 'supply day' motion meant to spur headlines and create a little mischief.
BANK OF CANADA — Odds are low that TIFF MACKLEM will budge the central bank's target rate from 2.75 percent when he steps up to a mic on Wednesday for his regularly scheduled rate announcement.
Economists widely expect Macklem to stand pat for the second time in a row.
— CIBC's AVERY SHENFELD has his sights set on later this year: 'Since the tariff outcome could now take longer to resolve amidst legal uncertainties we could end up getting only one 25 [basis point] cut this year, perhaps in Q4, rather than the two cuts we had projected.'
— BMO's DOUG PORTER projects rates will eventually settle at 2 percent, but the bank might not rush to get there: 'We continue to believe that this is not the end of the line for rate cuts, but we are officially pushing back our timing of those trims, to restart in late July, and perhaps stretching into early next year.'
LABOR RELATIONS — The Carney government is staring down its first labor relations test.
Canada Post and the union that represents 55,000 postal workers are getting nowhere at the bargaining table. The employer wants Jobs Minister PATTY HAJDU to force a vote on a final offer sent to the Canadian Union of Postal Workers.
In a statement, the union instead invited Canada Post to 'fair, final and binding arbitration to resolve all outstanding issues at the bargaining table.'
— Context: Following a punishing postal strike last year, Ottawa tasked a commission with recommending a path forward for the two sides. WILLIAM KAPLAN's final report painted a bleak picture of the national postal service's viability — including this line:
'Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt. Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate.'
— Government response: Hajdu and the secstate for labor, JOHN ZERUCELLI, have met with both sides in recent days.
'I urged both parties to continue working together to find an agreement that works for both parties and maintains a strong and lasting postal industry,' Hajdu said in a statement.
MORNING MUST-CLICKS
— The Globe's STEPHANIE LEVITZ writes that Conservative Leader PIERRE POILIEVRE could face a leadership review as early as March.
— The Canadian Press reports: Manitoba officials say wildfire contained in Flin Flon, wind change could push it into city
— From CBC News: No relief in sight from wildfires as 20 Sask. communities under evacuation orders
— The inaugural episode of 'The Conversation' with POLITICO's DASHA BURNS: DR. OZ on the future of Medicaid, Trump's megabill and AI avatar health care"
— From the Toronto Star: Memories, markdowns and mannequins — and a designer in mourning — mark the final day at Hudson's Bay Toronto flagship store
— DAN MCCARTHY asks in Ottawa Life: Is an energy corridor the new national dream or an Ottawa mirage?
Where the leaders are
— Prime Minister MARK CARNEY attends the First Ministers' Meeting in Saskatoon.
— Green Party Leader ELIZABETH MAY will meet with mayors from British Columbia and attend Parliament in person.
THE ROOMS THAT MATTER
— International Trade Minister MANINDER SIDHU is in Paris to attend the Organisation for Economic Co-operation and Development Ministerial Council Meeting, participate in meetings with WTO ministers and host a G7 trade ministers' meeting.
— U.S. Commerce Secretary HOWARD LUTNICK will give the keynote speech at the U.S.-India Strategic Partnership Forum's Leadership Summit 2025. Second lady USHA VANCE will also sit down for a fireside chat.
PROZONE
For Pro subscribers, our latest policy newsletter: Made in America? Not so fast
In other news for Pro readers:
— White House plans to pull nomination for NASA administrator
— Trump tells Congress what to chop in 22 percent budget slashing
— 'Trump time' becomes a liability for president's tariff agenda
PLAYBOOKERS
Birthdays: HBD to former broadcaster KEVIN NEWMAN.
Noted: Canada's embassy in Washington is hiring a senior foreign policy and diplomacy service officer who will focus on Congress. Salary: $126,662 (that's U.S. dollars).
Movers and shakers: A new tranche of ministerial chief-of-staff announcements made the rounds over the weekend.
→ CAROLINE LEE (Environment Minister JULIE DABRUSIN)
→ SAVANNAH DEWOLFE (Justice Minister SEAN FRASER)
→ SETH PICKARD-TATTRIE (Crown-Indigenous Relations and Northern Affairs Minister REBECCA ALTY)
→ TANIA AMGHAR (Indigenous Services Minister MANDY GULL-MASTY).
Lobby watch: Aecon Group posted two May meetings about infrastructure projects with PMO chief of staff MARCO MENDICINO … The Canadian Steel Producers Association reported meetings in May with International Trade Minister MANINDER SIDHU, Canadian ambo in D.C. KIRSTEN HILLMAN, Finance senior policy adviser MATHEW HALL and a group of senior bureaucrats at Public Services and Procurement Canada.
Media mentions: CTV's 'Question Period' won the Canadian Screen Award for best political news program or series.
Also among this year's winners: 'CTV National News with OMAR SACHEDINA' for best national newscast; CBC's ADRIENNE ARSENAULT for best national news anchor; Global National's JEFF SEMPLE for best national reporter; CBC Indigenous' JACKIE MCKAY for best local reporter; CTV's AVERY HAINES for best host or interviewer (news or information).
— The Winnipeg Free Press' JEFF HAMILTON and KATRINA CLARKE received this year's Don McGillivray Award at the Canadian Association of Journalists' annual gala. Check out the rest of the winners.
— CNN fact-checker DANIEL DALE is moving home to Canada, where he will remain with the network.
Got a document to share? A birthday coming up? Send it all our way.
TRIVIA
Friday's answer: Hanlan's Point Beach in Toronto was recently commemorated on a stamp because it once hosted the 1971 Gay Day Picnic. Canada Post notes the event was 'considered the first major gathering of queer people in Canada and an early example of what we now know as Pride.'
Props to ROB OLIPHANT, MARCEL MARCOTTE, JOHN PEPPER, ELIZABETH BURN, CHRIS RANDS, BOB GORDON, RAY DEL BIANCO, JUSTIN MARGOLIS, DARRYL DAMUDE, CID CABILLAN, ATUL SHARMA, MALCOLM MCKAY, ROBERT MCDOUGALL and JENN KEAY.
Today's question: When did the Bank of Canada most recently leave its target rate unchanged at two consecutive announcements?
Send your answer to [e-mail]
Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.