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Tariff double trouble
Tariff double trouble

Politico

time9 hours ago

  • Business
  • Politico

Tariff double trouble

Presented by U15 CANADA – Canada's Leading Research Universities Send tips | Subscribe here | Email Canada Playbook | Follow Politico Canada Thanks for reading Canada Playbook. In today's edition: → Canada braces for a fresh round of punishing Trump tariffs. → Liberals hope a border security bill makes a splash in Washington. → Stay tuned for the first confidence vote of the Carney era. Trade war TARIFFS APLENTY — President DONALD TRUMP delivered another economic punch to Canada's steel and aluminum sectors on Tuesday by doubling tariffs to 50 percent. The news landed minutes before Playbook sat down for an interview with Energy and Natural Resources Minister TIM HODGSON. 'Look, we can't control what happens south of the border,' he said. 'It's disappointing when you look across the border and see what's happening and the misunderstanding, but that's the Americans' decision.' Stay tuned for more from MIKE BLANCHFIELD's conversation with the minister. — Word from the top: A few hours after Trump followed through on his threat, Prime Minister MARK CARNEY's office released a statement calling the escalation 'unlawful and unjustified.' The PMO said the government is 'engaged in intensive and live negotiations to have these and other tariffs removed.' — No warning: Trump's late afternoon announcement came shortly after Canada-U.S. Trade Minister DOMINIC LEBLANC left a meeting with Commerce Secretary HOWARD LUTNICK in Washington. LeBlanc and Canadian ambo KIRSTEN HILLMAN offered no indication that Lutnick gave them the courtesy of a heads up. Instead, Carney's Washington whisperer was spinning his way through the chaos — not for the first time. LeBlanc told reporters their meeting was a 'positive' exercise in relationship building. 'Mr. Lutnick listens very carefully. He takes notes, he asks questions. We do the same thing,' LeBlanc said. 'And every time we have these conversations, I think we deepen our understanding of each other's positions. And I'm hopeful that we can get to the best outcome for Canadians.' — No crystal ball: It was just three weeks ago that the PM told Sky News in an interview that he didn't think Trump's White House would inflict further tariff wrath on Canada.. 'They could put more tariffs on us. That's always a possibility, conceptually,' Carney told the British broadcaster. 'I don't think that's going to happen, because we're now moving towards a more constructive place.' — Countdown to the showdown: Eleven days until the G7 leaders summit that Trump is expected to attend. MAYBE THIS'LL WORK — Carney's government spent Tuesday selling its new border security bill to the Trump administration — and a domestic audience back home. — Catching up: Public Safety Minister GARY ANANDASANGAREE discussed details of the 'Strong Borders Act' with Trump's 'border czar' TOM HOMAN in a call Tuesday. — But, but, but: As the two countries hash out a new economic and security deal, Anandasangaree pushed back on the idea that Canada wants to give the president a win. 'This is about delivering a win for Canada, ensuring that our borders are safer, our communities are safer,' he told reporters. 'And of course we're responding to some of the concerns that have been posed by the White House.' — What's in it: The bill would introduce new ineligibility rules for the refugee system; 'enhance' the RCMP's ability to share sex offender information with the U.S. and other allies; facilitate border guards' ability to inspect exports at certain ports; and allow the Canadian Coast Guard to share intelligence and conduct patrols. There's more. CP's JIM BRONSKILL has the full breakdown. — Long time coming: Several measures in the legislation were promised in December, when former Prime Minister JUSTIN TRUDEAU was still in office, in an attempt to persuade Trump to drop his tariff threat. (Parts of the bill had been in the works even longer to address gaps in the system, a Public Safety Canada official told Playbook.) — Political bonus points: Liberals are also making an effort to show they are cracking down on crime. Voters booted Liberals from several key seats in the Greater Toronto Area, where crime was a top-of-mind issue for many. Those defeats could have cost Carney a majority win. Want more POLITICO? Download our mobile app to save stories, get notifications on U.S.-Canada relations, and more. In iOS or Android . ON THE HILL FIRST TEST — The Liberals aren't freaking out about a confidence vote expected later today in the House of Commons. They plan to declare victory. Sure, they'll end up voting for a non-binding resolution that calls on them to unveil an economic update before the House adjourns for the summer. But Government House Leader STEVEN MACKINNON wasn't stressed out about it on Tuesday. — Quick backstory: A united opposition narrowly won a Monday vote on a Conservative amendment to a customary Liberal motion that thanked the king for delivering the throne speech. The CPC proposal called for an 'economic update or budget' before MPs hit the barbecue circuit — and the party made hay of the win on Tuesday. — Pish posh: MacKinnon dismissed Monday's non-binding vote. 'I suspect you're going to see a lot more of them,' he told reporters, implying the opposition can fill its boots with motions that don't actually force the government's hand. MacKinnon mocked the amendment's instruction to 'urge' the government to reveal its economic plan. 'I think we'll take note of having been urged,' he said. — Quick analysis: FAREES NATHOO, vice president of strategy and risk at Enterprise Canada, credited his former Liberal colleagues' approach. 'They're focused on delivering tangible change through the legislative agenda, not on procedural distractions,' Nathoo, who formerly ran point on parliamentary affairs for CHRYSTIA FREELAND, told Playbook. THE ROOMS THAT MATTER — It's caucus day on Parliament Hill. — Prime Minister MARK CARNEY will attend caucus and question period. — Defense Minister DAVID MCGUINTY is in Belgium. First on his agenda: a wreath laying at the Commonwealth War Graves Brussels Town Cemetery. He will also participate in a meeting of the Ukraine Defense Contact Group at NATO Headquarters in Brussels. — The Canadian Labour Congress' BEA BRUSKE, the Canadian Chamber of Commerce's CANDACE LAING and the Federation of Canadian Municipalities' CAROLE SAAB will hold a 1 p.m. press conference in West Block to 'outline the urgent need for a coordinated federal response to defend Canadian jobs, businesses and communities.' MORNING MUST-CLICKS — CBC's MURRAY BREWSTER reports on German and Norwegian officials urging Canada to buy new submarines from European allies. — B.C. Premier DAVID EBY says he won't support a new oil pipeline through British Columbia. — From our Washington colleagues: White House allies 'disappointed' at ELON MUSK's opposition to megabill. — What's next for the Canada-U.S. trade war? Via Substack, CHRISTOPHER SANDS proposes four scenarios. — Former Alberta Premier JASON KENNEY sat for nearly an hour with The Hub's HARRISON LOWMAN. Kenney spoke about provincial separatism, oil and gas and what's next for Canadian conservatism. PROZONE Our latest Pro PM Canada subscriber newsletter by MIKE BLANCHFIELD and MICKEY DJURIC: OECD on Trump's tariff hit on Canada Other headlines for Pro subscribers: — EU proposes junking its strict self-driving car rules in Trump trade talk gambit — House GOP leaders eye next week for vote on spending cuts — Will the Senate GOP salvage the IRA energy credits? PLAYBOOKERS Birthdays: HBD to Conservative MP MIKE LAKE and Sandstone Group's NARESH RAGHUBEER. Former Hill staffer NICHOLAS KANG also celebrates. Noted: The results of Tuesday's private members' business draw, which determines the order in which MPs can present their own bills or motions in the House — or trade their spots with a colleague in the chamber. Here's the top 10: — Liberal MP PETER FRAGISKATOS; Liberal MP LESLIE CHURCH; Conservative MP FRANK CAPUTO; Liberal MP ALI EHSASSI; Bloc Québécois MP MARIO SIMARD; Liberal MP AHMED HUSSEN; Liberal MP LISA HEPFNER; Liberal MP TERRY BEECH; Bloc MP XAVIER BARSALOU-DUVAL; and Liberal MP TATIANA AUGUSTE. — Any MPs named parliamentary secretaries are ineligible for the list, which will be updated when the parlsec roster is released. Spotted: Ontario Premier DOUG FORD, signing a Canadian football for U.S. ambo PETE HOEKSTRA: 'PETE, YOU ARE A CHAMP' … RICK TACHUK, president of AmCham Canada, meeting with Alberta Energy Minister BRIAN JEAN. At Beer Canada's packed reception: Cabinet ministers, MPs, lobbyists, staffers and journalists who sipped pints as they scarfed down sliders, poutine and maple bacon donuts. Ottawa's western sky, colored by a smoky Tuesday sunset. Movers and shakers: SABRINA MADDEAUX is now director of strategic communications in Global Public Affairs' Toronto office. Lobby watch: The Council of Canadian Innovators blitzed Ottawa on Tuesday, when 19 member CEOs met Procurement Minister JOËL LIGHTBOUND and Deputy Minister ARIANNE REZA; Industry Minister MÉLANIE JOLY and DM PHILIP JENNINGS; Public Safety DM TRICIA GEDDES; MARK SCHAAN, deputy secretary to Cabinet for AI; Liberal MPs JENNA SUDDS and YASIR NAQVI; and senior officials across several federal bodies. TRIVIA Tuesday's answer: The mass protest movement that set its sights on the nation's capital in 1935 was known as the On-to-Ottawa Trek. Props to AMY SCANLON BOUGHNER, JOSEPH PLANTA, MARCEL MARCOTTE, HUGUES THÉORÊT, DARRYL DAMUDE, MARC SHAW, KEVIN BOSCH, PAUL PARK, DOUG SWEET, MICHAEL POWELL, GORDON RANDALL, BOB PLAMONDON, ELIZABETH BURN, JEFF VALOIS, SAAHIL JAFFER, SHAUGHN MCARTHUR, CYRUS REIMER, ROBERT MCDOUGALL, JENN KEAY, J.D.M. STEWART, RAY DEL BIANCO, RALPH LEVENSTEIN, MALCOLM MCKAY, JOHN PEPPER, SUSAN KEYS and CHARLES DILLON. Wednesday's question: Who was the most recent finance minister to unveil a federal budget in June? Answers to canadaplaybook@ Writing tomorrow's Playbook: NICK TAYLOR-VAISEY and MICKEY DJURIC.

Peacemakers
Peacemakers

Politico

timea day ago

  • Business
  • Politico

Peacemakers

Presented by U15 CANADA – Canada's Leading Research Universities Send tips | Subscribe here | Email Canada Playbook | Follow Politico Canada Welcome to Canada Playbook. In today's edition: → A gaggle of American mayors play peacemaker north of the border. → The Liberals lose their first vote in the House of Commons. → RFK, avian flu and a British Columbia ostrich farm that won't play ball. Trade war LOVE THY NEIGHBOR — Columbus Mayor ANDREW GINTHER is on a mission to repair the Canada-U.S. relationship — but even he finds himself clashing with Canadians. The central Ohio mayor said he's hurt over Canada banning American-made goods, canceling trips to the States and booing 'The Star-Spangled Banner' at sporting events. 'I think the inflammatory rhetoric, the threats, that type of emotional language is not helpful,' Ginther told Playbook in Ottawa last week. 'Obviously those things are hurtful. If somebody boos during my national anthem, I'm going to take notice of that.' → Callback: U.S. Ambassador to Canada PETE HOEKSTRA shared similar feelings with POLITICO last month, calling it 'outrageous' that American products were banned from Canadian shelves. — They started it: Still, Ginther is trying to show outsiders that there's no bad blood between the neighbors. 'I think there are a lot of people from outside the United States and Canada who think that somehow the Canadian people and people in the United States are at odds, or there's some sort of tension and anger,' Ginther said. Canadians canceling their vacations might argue the tension is still there: Canadian resident car trips to the U.S. in April dropped year-over-year for the fourth consecutive month, Statistics Canada data shows — down significantly from pre-Trump 2.0 levels. — Feeling the pinch: Trump's tariffs have also hit American communities. Mayor BRYAN BARNETT of Rochester Hills, a suburb of Detroit, said the tariffs are driving investment out of his town. About 30 percent of companies are planning layoffs, largely in the automotive sector, and almost 60 percent of businesses are cutting off new investment in 2025, Barnett said. In Ohio, the trade war is driving housing prices by up to 10 percent, Ginther said, partly due to a rise in Canadian lumber costs. And an $8 billion transit project is in 'peril,' as many of the new vehicles the state was set to purchase come from Canada, Ginther added. — Keep 'em coming: Ginther and Barnett joined a U.S. delegation of mayors that attended the recent Federation of Canadian Municipalities annual meeting in Ottawa. It was the second delegation of U.S. politicians to land in Ottawa within a week. A bipartisan group of senators met days earlier with Prime Minister MARK CARNEY and a handful of Cabinet ministers. — Their assignment: Help repair the strained relationship between the two countries. The mayors mingled with their Canadian counterparts, roasted the Toronto Maple Leafs while on a panel with Toronto Mayor OLIVIA CHOW, and took in Carney's speech on Friday. → First impressions: Ginther described the PM as having a 'thoughtful' approach to the United States. Barnett offered a different take: 'Sneaky funny,' he said of Carney. 'I thought he had a great sense of humor, which is kind of a fun thing if you're in this business.' ON THE HILL CURVEBALL — The Liberal government narrowly lost a House of Commons vote on Monday evening that will keep parliamentary affairs experts busy this week. MPs were voting on a Conservative amendment to a Liberal motion that thanks the king for delivering the throne speech. The CPC proposal called for an economic update before MPs adjourn for the summer. — Tally it up: That amendment passed 166-164 — a margin almost as slim as it gets. A few Liberal MPs didn't manage to register their votes. On the video of proceedings, Government House Leader STEVEN MACKINNON is visible on his phone following the result. ANDREW SCHEER, the Conservative leader in the House, strolled across the aisle for a conversation with his counterpart. — The words to parse: The CPC amendment called on the government to make 'a firm commitment to present to Parliament an economic update or budget this spring, before the House adjourns for the summer.' — What does it mean: MPs still haven't voted on the amended Liberal motion, and if or when they do, a handful of House watchers told iPolitics the result would likely not be binding on the government. Still, Liberals would face pressure to do something. For your radar BIRDS OF A FEATHER — It had to be a nose-to-the-grindstone Friday for officials at the Canadian Food Inspection Agency. After all, lengthy end-of-week press releases — 771 words, in this case — don't write themselves. Especially when they reinforce the government's intention to enforce a cull of potentially diseased ostriches in the name of public safety. — Friends in high places: CBC News pulled together the threads of a simmering story in British Columbia, where an ostrich farm protecting its flock scored an endorsement from U.S. Health and Human Services Secretary ROBERT F. KENNEDY JR. — Origin story: Avian flu was detected last December in ostriches at a farm called Universal Ostrich in remote and rural Edgewood, B.C. The owners fought for the survival of their birds after the CFIA determined — based on longstanding policy — that the flock be offed. Or, as the federal agency puts it, 'humane depopulation with veterinary oversight at the infected premises.' — Sick birds: The infected ostriches were found to carry a 'highly pathogenic avian influenza' that could transfer to other animals, including poultry — or, on occasion, humans. The CFIA implemented a 'stamping-out' protocol to protect the spread of the disease that is recommended by the Terrestrial Animal Health Code published by the World Organisation for Animal Health. — Ostrich champs: The owners have fought for the survival of their ostriches, securing support from RFK and fellow Trump admin'er DR. MEHMET OZ, the administrator of the Centers for Medicare & Medicaid Services. They argue the birds should be allowed to live because they could serve scientific research. — The official debunking: 'Universal Ostrich Farm has not substantiated their claims of scientific research. CFIA has not received any evidence of scientific research being done at the infected premises,' the agency said in its statement, referring to the May 13 Federal Court ruling upholding its right to take action against the ostriches. — Bird bust?: A spokesperson for Agriculture Minister HEATH MACDONALD told Playbook the minister is receiving regular updates on the situation. 'The CFIA's work is being done to protect human and animal health, our poultry sector, and access to our international trade markets,' said ANNIE CULLINAN. 'The agency is moving ahead with the planned cull, but operational details will not be shared with the public in advance.' — Pro tip: A lengthy federal backgrounder on the topic makes clear that an RCMP presence 'is now required for any CFIA on-farm activities.' Where the leaders are — At 6:30 p.m., Green Leader ELIZABETH MAY will attend the National Council of Canadian Muslims' reception on the organization's national advocacy day. THE ROOMS THAT MATTER — Canada-U.S. Trade Minister DOMINIC LEBLANC is meeting with Commerce Secretary HOWARD LUTNICK in Washington, D.C. — At 8:30 a.m., the Frontier Duty Free Association and Sarnia Mayor MIKE BRADLEY hold a press conference calling for federal support for border businesses. — At 12 p.m., MPs will gather for a random draw that determines the all-important private members' business order of precedence. Check back tomorrow for the winner. — U.S. Ambassador to Canada PETE HOEKSTRA will sit for a fireside chat at the Empire Club of Canada in Toronto — and host an evening reception while he's in town. Want more POLITICO? Download our mobile app to save stories, get notifications on U.S.-Canada relations, and more. In iOS or Android . TALK OF THE TOWN TRIVIA NIGHT — LIMITED HOSPITALITY squeaked out the victory in Playbook's first post-election trivia showdown at the Métropolitain. The winners scored 26 points out of 30. — Runner-up: LPC OF THE 80s (25) — Third place: LET'S CIRCLE BACK TO THAT (24) MORNING MUST-CLICKS — From CBC's KATE MCKENNA: 'A caller raising money for the Conservative Party cast doubt on the validity of the recount process in the recent federal election, according to a recording obtained by CBC News.' — CP's JIM BRONSKILL tees up a government bill expected today that would 'further tighten' the Canada-U.S. border. — CBC News captured broad takeaways from the First Ministers' Meeting in Saskatoon: Premiers express optimism after pitching major projects to Carney — A different take in the Toronto Star: Mark Carney, premiers agree on 'nation-building priorities,' but First Nations raise alarms over lack of consultation — Nunatsiaq News checks in on a major infrastructure project in Nunavut: The Kivalliq Hydro-Fibre Link's estimated cost rises to C$3.2B — North Poll Strategies' ALEX KOHUT interviews former Hill comms guy ALEX WELLSTEAD about dealing with journalists: 'It's their job to really push on you to get something.' PLAYBOOKERS Birthdays: HBD to Conservative Party Leader PIERRE POILIEVRE, retired Sen. HOWARD WETSTON, and CUPE senior comms officer HUGH POULIOT. HBD + 1 to Health Minister MARJORIE MICHEL and Rogers' CHERYL FOUGERE. Spotted: Liberal MP SHERRY ROMANADO, celebrating Christmas come early (aka fresh printed versions of the House of Commons standing orders). Noted: The Hunter Prize for Public Policy is open for applications. This year's award — worth up to C$50,000 — will focus on 'the best ideas to strengthen Canada's economy and raise living standards,' SEAN SPEER and TAYLOR JACKSON write at The Hub. Movers and shakers: Former Cabmin OMAR ALGHABRA joins Bechtel as their vice president of public infrastructure for Canada … Longtime PMO staffer KATE VANGERVEN is taking a break from Parliament Hill … KATE SAUSER is now policy manager at the Grain Growers of Canada … DAVE CAREY is now president and CEO of the Canadian Coatings Association. The official updated list of ministerial chiefs of staff circulated yesterday. These are the newest names: → ANSON DURAN: Artificial Intelligence Minister EVAN SOLOMON → VASKEN VOSGUIAN: Transport Minister CHRYSTIA FREELAND → CORY PIKE: National Defense Minister DAVID MCGUINTY → ANN-CLARA VAILLANCOURT: Quebec Lieutenant STEVEN GUILBEAULT → ALLIE CHALKE: Procurement Minister JOËL LIGHTBOUND → TANIA MONAGHAN: Indigenous Services Minister MANDY GULL-MASTY → ALEX JAGRIC: Secstate for children and youth ANNA GAINEY → KEVIN COLLINS: Secstate for CRA and financial institutions WAYNE LONG Lobby watch: Porter O'Brien's JORDAN O'BRIEN posted recent meetings on behalf of Horizon Naval Engineering, which wants Ottawa to lease or purchase its icebreakers. O'Brien made contact with CYNDI JENKINS in the Prime Minister's Office and NEIL MACISAAC, chief of staff to Fisheries Minister Joanne Thompson. Got a document to share? A birthday coming up? Send it all our way. PROZONE Our latest policy newsletter for Pro subscribers: Tilting at building big — and fast The latest headlines for our paid subscribers: — Energy Department budget guts clean energy programs, boosts nuclear — Interior Department to rescind conservation protections in Alaska oil reserve — USDA's delayed report raises forecast ag trade deficit to record $49.5 billion — Chaos at FEMA, NOAA as hurricane season starts — Florida insurers turn a profit after losing billions TRIVIA Monday's answer: The Bank of Canada most recently left its target rate unchanged at two consecutive announcements in March and April 2024. Props to ANDREW BALFOUR, ROBERT MCDOUGALL and MALCOLM MCKAY. Today's question: Which mass protest movement set its sights on the nation's capital on this day in 1935? Answers to canadaplaybook@ . Wednesday's Playbook will be written by MICKEY DJURIC and NICK TAYLOR-VAISEY. Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.

Nation-builders, unite
Nation-builders, unite

Politico

time2 days ago

  • Business
  • Politico

Nation-builders, unite

Presented by U15 CANADA – Canada's Leading Research Universities Send tips | Subscribe here | Email Canada Playbook | Follow Politico Canada Happy Monday. Thanks for reading Canada Playbook. Let's get into it. → 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 canadaplaybook@ Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.

Under fire
Under fire

Politico

time5 days ago

  • Business
  • Politico

Under fire

Presented by COVE Ocean Send tips | Subscribe here | Email Canada Playbook | Follow Politico Canada Thanks for reading Canada Playbook. T-minus 15 days. In today's edition: → SUSAN HOLT on the PM, the premiers and getting things done. → The tariff bombshell — and what comes next. → Plus, MÉLANIE JOLY on Canada's changing trade relationships. LISTEN UP, OTTAWA ANOTHER PRAIRIE TUNE — As wildfires force thousands from their homes in northern Saskatchewan, the prime minister and premiers are in final prep mode for Monday's high-stakes fed-prov confab in Saskatoon. Prime Minister MARK CARNEY had already ratcheted up the stakes for a First Ministers Meeting meant to tap into the get-things-done vibe — more on that below — emanating from Ottawa. Carney is under pressure to deliver on a crisis-level action plan. The provincewide state of emergency that awaits the visiting politicians offers a searing reminder that Canada is in for another summer on fire. → Don't look up: Sixteen days until G7 leaders gather in Kananaskis, the mountain resort village no stranger to smoky skies. (We're bookmarking UBC's smoke forecast map.) — Common ground: The clock is ticking to Canada Day, which Carney has repeatedly set as the deadline to knock down interprovincial trade barriers. Playbook is checking in with premiers who've booked their flights to the prairies. First up, New Brunswick's SUSAN HOLT. MARITIMER IN RED — Canada's third-newest premier heads to Saskatoon feeling bullish about freer trade across the land — but with managed expectations. 'The trickiest ones are the resource-based barriers,' she told us recently, citing forestry and fisheries as a pair of the 'most sticky' examples of provincial protectionism. Holt recently inked a deal with Newfoundland and Labrador's ANDREW FUREY meant to pave the way for fewer barriers. But not zero. Provinces have an enduring interest in shielding their own sectors and workers from external competition — say, job-creating fisheries foundational to the place's identity. 'Newfoundland stated clearly, and we respect that, that they have minimum processing requirements for seafood — you catch it in Newfoundland, you process it in Newfoundland,' Holt said. 'We're making the progress we can, as quickly as we can, recognizing that a lot of people in Canada have strong attachments to the resources of their community, whether those be trees or fish or minerals or otherwise.' — Not a gambler: Forget Canada Day. Does the premier think a barrier-free country is possible by the end of the year? 'Whether trees and fish get tackled this year or not, I'd hate to bet on that,' she said. 'Those are pretty fundamental in certain places in this country, but we're making huge strides.' — 'Get shit done': Playbook asked Holt to compare former PM JUSTIN TRUDEAU's fed-prov meeting management with Carney's. She didn't take the bait — but did share her observations of the businesslike new PM's approach to premiers. Their meetings are heavily structured — 'sometimes we go west to east, and sometimes we go east to west' — but the premier did say this about Carney's style: 'He is a succinct communicator. He's a warm communicator. He comes across with a real humble energy that I think the premiers respond well to, because there's a sense of equality around the table that's being fostered,' Holt said. 'But he also has very steely resolve in his desire to get shit done. And that's clear in how he communicates, and how he tries to apply focus to the conversation.' WHO'S UP, WHO'S DOWN Up: Nation-building projects and fast-track approvals. Down: The monarchy in Quebec, where the National Assembly voted 106-0 this week to cut all ties between the Crown and the province. Trade war LEGAL WHIPLASH — Three court rulings in 24 hours. And everything is clear as mud for President DONALD TRUMP's largest trading partners, Canada included. — What just happened: As our Washington colleagues explain, legal developments have Trump on the back foot. — Wait, watch, focus: As Trump wages war on the 'activist judges' he sees obstructing global deal making, Prime Minister MARK CARNEY appears laser-focused on one trade goal: Getting rid of all U.S. tariffs on Canada. Carney and others say there's work to be done to eliminate tariffs not covered by the rulings. Those include Section 232 tariffs on steel, aluminum and autos under the Trade Expansion Act of 1962 that gives the president the authority to impose tariffs to protect U.S. national security. — On guard for thee: 'We recognize that our trading relationship with the United States is still profoundly and adversely threatened and affected by similarly unjustified 232 tariffs against steel, aluminum and the auto sector,' Carney said Thursday in the House of Commons. — Not to mention: He added to his list 'continuing threats of tariffs against other strategic sectors, including lumber, semiconductors and pharmaceuticals.' — For the record: 'Our position has been that all of these tariffs need to be removed,' DOMINIC LEBLANC, Carney's Canada-U.S. trade minister, said on the latest 'WONK' pod. 'We're not looking to replace this tariff with a lower rate.' — In related reading: ANKUSH KHARDORI, a senior writer for POLITICO Magazine and a former federal prosecutor at the U.S. Department of Justice, explains why the path forward for Trump's tariffs will not get easier after defeat at the U.S. Court of International Trade. — Noted in the Brussels Playbook: European Commission President URSULA VON DER LEYEN outlined her vision for a 'new form of Pax Europaea for the 21st century' in a speech in Germany on Thursday. 'One that is shaped and managed by Europe itself.' Von der Leyen identified four central tasks to bring about independence, POLITICO's NETTE NÖSTLINGER reports: Securing peace by increasing defense spending; strengthening innovation and competitiveness to stimulate growth; expanding the bloc in what she referred to as 'a historic reunification;' and renewing and strengthening democracy to protect member countries from internal and external threats. PLAYBOOK'S ONE-ON-ONE SHOW ME THE MONEY — MÉLANIE JOLY wants to make a deal. 'We are overdependent on the U.S.,' Joly told Playbook. 'We need to change that dynamic.' Canada's new industry minister says she's courting cash from foreign businesses, chasing investors in defense, energy, AI and tech to reignite Canada's manufacturing sector, which has shed 31,000 jobs since DONALD TRUMP slapped tariffs on Canada. That includes teaming up with Europe to build military goods and equipment here at home. — Dawn of a new age: 'What we're witnessing right now is the creation of [new] economic blocs and the trade rules are being rewritten,' Joly said. 'There is that geoeconomic competition of attracting investments, and you saw that with President Trump in the Gulf states. We need to do that,' she said. 'It's a new type of diplomacy. It's diplomacy between Canada, but also business leaders around the world.' — Sounding similar: Joly's plans echo Trump's America First Investment Policy, part of his goal to usher in 'America's Golden Age' by focusing on foreign deals to help grow the American economy. On Sunday, Trump laid out what kind of manufacturing jobs he has promised to bring back to the U.S. And it's not sneakers and T-shirts. 'We want to make military equipment. We want to make big things. We want to make, do the AI thing,' he said. 'We are looking to do chips and computers and lots of other things, and tanks and ships.' — Behind the scenes: While we had Joly's ear, we asked what was going on in those Instagram photos she posted showing her smiling with Trump and then later walking out of the Oval Office with a hat that had been sitting on the president's desk. 'This will be my secret for life,' she said with a laugh. Where the leaders are — Prime Minister MARK CARNEY will deliver remarks at 11 a.m. at the Federation of Canadian Municipalities Annual Conference and Trade Show at the Rogers Centre. THE ROOMS THAT MATTER — The Young Politicians of Canada host a national summit at the Sir John A. Macdonald Building. MORNING MUST-CLICKS — CBC News reports that Saskatchewan has declared a state of emergency, as wildfires rage across the northern part of the province. — The Globe reports that Foreign Affairs Minister ANITA ANAND wants to rebuild ties with India, 'one step at a time.' — The Bloc Québécois has, once again, introduced a private member's bill aimed at ensuring 'full protection for supply management' in trade agreements, ANTOINE TRÉPANIER of the National Post reports. — Economist TREVOR TOMBE notes at The Hub that Canada might be entering a new era for internal trade. — Maclean's profiles McGill professor JUAN SERPA, who created an online forum helping U.S. researchers protect their data from Trump. — Befuddled drivers in Buffalo commonly end up in Canada following a bridge renovation, typically costing them a toll. The NYT tells the story of a man named Victor, who spent three weeks in ICE custody as a result. PLAYBOOKERS Birthdays: HBD to former Alberta Premier JASON KENNEY and longtime Liberal staffer HALLIE STACEY-SULLIVAN. Celebrating Saturday: Angus Reid President SHACHI KURL, The Trillium's CHARLIE PINKERTON, CBC's ROSEMARY BARTON, CAMERON HOLMSTROM of Niipaawi Strategies, Liberal MP GREG FERGUS, businessperson LEONARD ASPER, former NDP MP PIERRE-LUC DUSSEAULT, former broadcaster VICKI GABEREAU, former B.C. Attorney General SUZANNE ANTON and Terrebonne Mayor MATHIEU TRAVERSY. On Sunday: Justice Minister SEAN FRASER and former Conservative MP LARRY MAGUIRE. Spotted: Photos from this week's 'House-warming' party at the Métropolitain. At Sussex Strategy's FCM reception at Luxe in the ByWard Market: Sen. SANDRA PUPATELLO, Cornwall Mayor JUSTIN TOWNDALE, Liberal MP AHMED HUSSEN. Noted: Conservative Leader PIERRE POILIEVRE has joined the substacking ranks. The first government bill in the Senate was introduced Thursday. Bill S-2 proposes changes to the Indian Act. Movers and shakers: MICHELE CADARIO, a former senior aide to PAUL MARTIN and CHRISTY CLARK, is now executive vice president at Rubicon Strategy … MICHELLE JOHNSTON, a longtime Liberal staffer at Queen's Park and on Parliament Hill, is vice president of communications at Syntax Strategic. Send Playbookers tips to canadaplaybook@ PROZONE For Pro subscribers, check our latest policy newsletter from MIKE BLANCHFIELD. In other Pro headlines: — White House insists court ruling won't derail Trump's tariff agenda. — CO2 storage approval forecast slashed 65%. — California should end its emissions offset program, researchers say. — Berlin drafts bill to tax digital platforms. TRIVIA Thursday's answer: The Queen Elizabeth II monument is currently located in the roundabout next to the entrance to Rideau Hall. Props to GORDON RANDALL, IAN FARIS, MAGGIE BAER, MARK LEBLANC, MARY O'KEEFE, MALCOLM MCKAY, CHRIS LALANDE, CHRISTINA LEADLAY, ROBERT MCDOUGALL, FELIX BERNIER, MORGAN LARHANT, SEAN SUNDERLAND, DAN MCCARTHY, RYAN CAMERON, KATIE FEENAN, LORI BROOKS, SHEILA GERVAIS, PETER CLEARY, SARAH ANSON-CARTWRIGHT, ELIZABETH BURN, JOHN PEPPER, JOHN MATHESON, RAY DEL BIANCO, KEVIN COLBOURNE, SHAUGHN MCARTHUR, MARCEL MARCOTTE, JOHN ECKER and JADEN BRAVES. Friday's question: Why is Hanlan's Point Beach in Toronto celebrated on a new stamp from Canada Post? Send answers to canadaplaybook@ Writing Monday's Playbook: NICK TAYLOR-VAISEY

First impressions
First impressions

Politico

time6 days ago

  • Business
  • Politico

First impressions

Presented by COVE Ocean Send tips | Subscribe here | Email Canada Playbook | Follow Politico Canada Thanks for reading Canada Playbook. Let's get into it. → Here's what we know about the ruling against Trump's tariffs. → The newest senior hires amid a Hill staffing scramble. → Team Carney faces its first QP tests. → Canada's new finance minister meditates on the bottom line. Trade war LIBERATION DAY: THE SEQUEL — A federal court has struck down U.S. President DONALD TRUMP's tariffs on dozens of countries, saying his effort to justify them with broad claims of national emergencies exceeded his legal authority. D.C. colleagues DOUG PALMER, KYLE CHENEY and JOSH GERSTEIN report that the unanimous ruling of a three-judge panel of the U.S. Court of International Trade strikes a blow to one of the central planks of Trump's economic agenda. — Heart of the decision: Trump justified his tariffs on dozens of countries based on declarations of national emergencies related to fentanyl trafficking and the threat of persistent trade deficits. His Feb. 1 declaration said Canada 'played a central role' in the opioid crisis. He also imposed retaliatory tariffs on countries that responded in kind. The court said the federal law that authorizes the president to impose tariffs, embargoes and sanctions in response to national emergencies — the International Emergency Economic Powers Act of 1977 — 'does not authorize the President to impose unbounded tariffs.' — See you in court: The White House immediately announced it was appealing the decision. White House deputy chief of staff STEPHEN MILLER posted on X that 'the judicial coup is out of control.' The case could end up at the U.S. Supreme Court. Ottawa was crickets last night, but we'll be following all the reaction today. ON THE HILL FIRST IMPRESSIONS — Welcome to the new era of tit-for-tat, two-party tussles. It's Liberal versus Conservative with few exceptions. Wednesday's question period offered lessons on the post-election look and feel of the House. — The gloating hour: Liberals really rubbed in PIERRE POILIEVRE's absence when his successor in Carleton, newbie MP BRUCE FANJOY, delivered a 60-second statement to sustained applause from the government benches. Meanwhile, Poilievre was scrumming with reporters in the foyer outside the chamber. So close, but so far. — Getting their feet wet: MARK CARNEY and TIM HODGSON are both new to the House. One of them looks and sounds like a political rookie. The other one is Carney. Hodgson faced his first test under the bright lights as minister of energy and natural resources. He looked the part as he carefully read notes, struggled to find a rhythm, and faced forceful heckling from Conservatives in search of a straight answer. Carney, for his part, never seemed rattled as he took nine questions from across the aisle. Few highlights. Minimal charisma. Zero faceplants. Between questions, the PM joked with Finance Minister FRANÇOIS-PHILIPPE CHAMPAGNE and conferred with Government House Leader STEVEN MACKINNON. — Testing, testing: The opposition served up the broad outline of QP priorities. They poked and prodded Champagne, Industry Minister MÉLANIE JOLY, Housing Minister GREGOR ROBERTSON, Secstate for combating crime RUBY SAHOTA, Public Safety Minister GARY ANANDASANGAREE and Environment Minister JULIE DABRUSIN. — Their day will come: Some of the government's highest-profile Cabmins never left their seats — a trend that surely won't last. The opposition spared Canada-U.S. Trade Minister DOMINIC LEBLANC, Foreign Minister ANITA ANAND, Transport Minister CHRYSTIA FREELAND, Defense Minister DAVID MCGUINTY and Justice Minister SEAN FRASER. Nobody had a question for Artificial Intelligence Minister EVAN SOLOMON, the talkative former broadcaster who is yet to utter a word in Parliament. Can't be long now. FIRST IN CANADA PLAYBOOK NEW CHIEFS — A second tranche of ministerial chiefs of staff circulated among Liberal ranks late Wednesday — seven names on top of the dozen announced late last week. Here's who has landed where: — PAUL MOEN: Industry Minister MÉLANIE JOLY — FRANÇOIS GIROUX: Public Safety Minister GARY ANANDASANGAREE — DILYS FERNANDES: Veterans Affairs Minister JILL MCKNIGHT — ADAM CARROLL: Immigration Minister LENA DIAB — KENDRA WILCOX: Women and Gender Equality Minister RECHIE VALDEZ — NOÉMIE FISET-TREMBLAY: Labour Secstate JOHN ZERUCELLI — MARIA MORLEY: Rural Development Secstate BUCKLEY BELANGER Where the leaders are — Prime Minister MARK CARNEY will meet Toronto Mayor OLIVIA CHOW at 1 p.m. to discuss, per Chow's itinerary, 'working together to build more homes, get Toronto moving and fight rising costs.' — Green Party Leader ELIZABETH MAY will speak to reporters about the throne speech at 1:45 p.m. THE ROOMS THAT MATTER — The annual CANSEC defense and security trade show enters its second and final day today at the EY Centre near Ottawa's airport. Industry Minister MÉLANIE JOLY downgraded a press availability to a walkabout of the show floor. Attendees will hear from former NATO Secretary General LORD GEORGE ROBERTSON at a breakfast keynote, followed by former Lithuanian foreign minister GABRIELIUS LANDSBERGIS at lunch. — The Federation of Canadian Municipalities Annual Conference and Trade Show is underway at the Rogers Centre. — Also on Chow's itinerary: an 8:15 a.m. meeting with the FCM Big City Mayors' Caucus. The mayor will also appear on CBC's 'Power & Politics' before heading to a 6 p.m. reception for big city mayors. PLAYBOOK'S ONE-ON-ONE FISCAL MEDITATIONS — From his 18th-floor office on Elgin Street, FRANÇOIS-PHILIPPE CHAMPAGNE has a clear view of the stark brutalist towers housing Canada's Department of National Defence. Canada's new finance minister says he's ready to make the DND's occupants very happy with a funding boost aimed at hauling Canada out of the NATO dungeon. — Just one catch: He offered no firm timeline. 'The outcome we want to achieve is to protect Canada, protect Canadian sovereignty. The world has changed significantly,' he told Playbook in a Tuesday interview. 'The discussion now is how we're going to get to 2 percent.' — Yes, we've heard this pledge before. Champagne says it's different because of next month's NATO summit. — One more catch: Secretary General MARK RUTTE is suggesting the spending target might be raised to 5 percent. It's late afternoon when Champagne greets Playbook, just after meeting KING CHARLES III. A half-eaten sandwich wrap — his lunch — sits on the table next to the sofa. In a wide-ranging interview that you can read here, he talked us through the mixed signals around the timing of the budget. Champagne advised journalists to expect only a Fall Economic Statement. Prime Minister MARK CARNEY soon contradicted that, committing to a full budget after the summer break. 'Listen, we came to the conclusion it would be in the best interest of Canada … to bring a serious budget in early fall, once we have more clarity around defense, around the trade war that is happening now in the world, and certainly when we have also initial feedback from our initiatives on government efficiency,' Champagne said. 'For me, this is about responsible government.' — Mind over ministry: Champagne, who likes to be known as the minister of go-go-go, does spend some time not working. 'When I have a bit of time, I try to do exercise,' he said. 'More and more I've been doing meditation and what they call mindfulness.' → Like the boss: Carney also touts meditation — especially when he's busy. 'Trust me, it creates time,' he writes in his book. Champagne says he does not have a lot of private time. 'So I try to be in the moment when I have a bit of time for myself. Once your body and your mind is in the best shape, this is how you can give the best to the work you have to accomplish.' Want more POLITICO? Download our mobile app to save stories, get notifications on U.S.-Canada relations, and more. In iOS or Android . MORNING MUST-CLICKS — ELON MUSK is saying goodbye to DOGE. POLITICO's IRIE SENTNER reports that Trump's billionaire adviser confirmed his time as a 'special government employee' was concluding soon. — From JOHN PAUL TASKER at CBC News: Mexico's president noncommittal about coming to Canada for G7 summit. — The Globe's BOB FIFE and LAURA STONE report that the PM plans to brief premiers on a plan to fast-track major nation-building projects, 'such as ports, critical mineral mines and trade corridors.' — Documents obtained by POLITICO's MIZY CLIFTON show the U.K. government thinks AI can do two-thirds of the most junior civil servants' work. — The Logic's DAVID REEVELY and MURAD HEMMADI report that government workers are using free online tools to translate documents between English and French, bypassing the official translation service — and yielding sometimes embarrassing results. — ANDREW BEVAN, who served as Liberal national campaign director, told CTV Power Play that he does not think the Conservatives had a strategy problem. 'I do think they had a leader problem.' PROZONE For Pro subscribers, here's our latest policy newsletter. In other news for Pro readers: — A big, beautiful EU trade deal with Trump? Dream on! — 'Death knell' for 'green' hydrogen? — White House adviser on Apple tariffs: 'We'll see what happens.' — Historic ruling holds German utility liable for climate damage. — EU roughly on track to hit 2030 emissions goal, Brussels says. PLAYBOOKERS Birthdays: HBD to Wire Report editor HANNAH DALEY, CN senior manager of government affairs BROOKE MALINOSKI and journo and author LINDEN MACINTYRE. Spotted: An observer shouting 'Looking good Francis!' in the middle of the House speaker's parade, a daily procession through the halls of West Block before each daily sitting. Deputy Conservative Leader MELISSA LANTSMAN and Saskatchewan MP JEREMY PATZER at Ottawa Ribfest on Sparks Street. Movers and shakers: Conservative MP TOM KMIEC was named deputy House speaker. HEATHER POTTER, the former chief of staff to Ontario Jobs Minister VIC FEDELI, is now vice president of business development at Invest Ontario … JOHN MATHESON is senior fellow for tech policy at The Centre for Media, Technology and Democracy … WIL ROBERTSON is now senior adviser for federal affairs at the Canadian Association of Petroleum Producers. Lobby watch: Crestview Strategy's CHRISTINE MCMILLAN has registered on behalf of Tesla Motors Canada … Alar Strategy Group's RICHARD MAKSYMETZ is lobbying for First Peoples Pipeline LNG, which wants to bend Ottawa's ear about a potential project in northern Manitoba. Noted: The Conservative Party has opened registration for its Calgary Stampede BBQ on July 5. A seating chart for the annual Heritage Park bash shows room for 970 guests at C$175 bucks a pop. Got a document to share? A birthday coming up? Send it all our way. TRIVIA Wednesday's answer: 'The only certainty about him is that he was young,' then-Governor General ADRIENNE CLARKSON said in a eulogy delivered on May 28, 2000 at a ceremony for Canada's Unknown Soldier, who was laid to rest. Props to LAURA PAYTON, MARCEL MARCOTTE, CHRIS RANDS, RAY DEL BIANCO, RANDY ALLAN, CHARLES DILLON, SHAUGHN MCARTHUR, BOOTS VAISEY, DARRYL DAMUDE, LAURA JARVIS, ANDREW SZENDE, JOANNA PLATER, JENN KEAY, JEFFREY VALOIS, JOHN PEPPER, ROBERT MCDOUGALL, BEN BROWN CLEMENTS, MALCOLM MCKAY, and ELIZABETH BURN. Today's question: The Queen Elizabeth II monument was the only Parliament Hill statue not erected posthumously, but it was removed for the duration of Centre Block's massive renovation. Where is it located these days? Send your answer to canadaplaybook@

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