As Canada absorbs the impact of freshly-implemented U.S. tariffs and braces for the impact of the soon-to-be-implemented counter tariffs, the Carney government is showing some signs that it’s not completely oblivious to all of the costs piling up for Canadian consumers and businesses.
asserted
it → absorb → consumers
It would be hard to deny that a trade war is a bad time to impose new costs on Canadians and it’s encouraging to see the government acknowledge this.
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government → deny → this
Unfortunately, that logic only extends so far.
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logic → extend → ?
Earlier this week, the finance minister announced that the federal gasoline tax will not be re-imposed on Labour Day, as was previously planned.
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tax → announce → Day
Instead, the tax holiday will be extended until the end of January, followed by a brief period of half the tax and full reinstatement on April 1, 2027.
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holiday → extend → April
François-Philippe Champagne says the government has flexibility, thanks to a resilient national economy and the additional government revenue generated by higher oil prices.
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government → say → prices
It remains to be seen just how resilient the economy will prove to be, especially in the face of a worsening and potentially prolonged trade dispute.
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economy → remain → dispute
Friday’s latest jobs report showed an unexpected loss last month of 42,000 jobs in the economy, so things may be a little more precarious than the government would like to admit.
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government → show → economy
Furthermore, while indeed higher oil prices have boosted government revenues, that’s very much a double-edged sword as that has also meant much higher costs for consumers.
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that → boost → consumers
So while the gas tax holiday has provided some relief, it would have been quite a double-whammy to re-impose that tax just as new counter tariffs are kicking in.
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tariffs → provide → tax
Champagne’s announcement Wednesday coincided with the latest interest rate announcement from the Bank of Canada.
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announcement → coincide → Canada
While the bank’s benchmark rate is holding steady for now, Governor Tiff Macklem warned of a rising inflation risk, thanks to higher energy costs and the tariffs and counter tariffs spawned by this Canada-U.S. trade dispute.
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Macklem → hold → dispute
It’s hardly breaking news that, as noted in the government’s press release, “affordability remains top of mind for families and businesses across the country.”
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affordability → break → country
The problem, though, is that this government’s agenda — scant as it is — is undermined by its own tepidness and by their own trade strategy.
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it → undermine → strategy
In the government’s defence, the skyrocketing price of oil — and, by extension, gasoline and diesel — is due in large part to circumstances very much outside of their control.
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price → skyrocket → control
Furthermore, we didn’t ask for this trade war (even if it’s not entirely clear what led to this most recent breakdown in talks).
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what → ask → talks
We were content to live under the terms of CUSMA, and these new and unjustified U.S. tariffs arguably warranted some response.
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tariffs → live → response
But now we’ve got competing agendas operating at cross-purposes.
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we → get → purposes
It’s hard to offer or deliver a credible affordability agenda — anchored in the premise that government-imposed costs are to be avoided and mitigated — while also pushing ahead with a new layer of government-imposed costs.
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costs → ’ → costs
Look, the government may well believe that counter tariffs are necessary and that they serve the objective of ultimately arriving at a point where tariffs come down on both sides.
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tariffs → look → sides
But they should be more honest in acknowledging their belief that there are costs Canadians must absorb in pursuit of this goal.
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Canadians → acknowledge → goal
All of which makes it more difficult to portray themselves as the guardians of affordability.
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it → make → affordability
The government seems to be picking and choosing when it matters or when it warrants a policy intervention.
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it → seem → intervention
That’s not to say counter tariffs should be off the table, even if there’s a case to be made for a Canadian response to be much much more targeted and limited.
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response → ’ → table
But it does mean that the government should live up to its own rhetoric.
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government → mean → rhetoric
If counter tariffs are essential in defending our national interests, and if affordability is still a priority, then much more can and should be done elsewhere to further mitigate the blow.
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more → defend → blow
No, we can’t control what Donald Trump does, whether it’s his own trade agenda or his war in the Middle East.
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it → control → East
But there’s much that’s within the government’s control that impacts not only affordability but overall competitiveness and productivity: taxes (both personal and corporate), other tariffs and trade barriers, as well as regulations and red tape — just to name a few..
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that → ’ → few
The extended gas tax pause is welcome but it should be merely the beginning of a broader government strategy to alleviate existing affordability pressures and to offset the additional pressures that now loom.
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that → alleviate → pressures
As much as we’d prefer a quick end to trade hostilities and a return to open trade between the U.S. and Canada, we can’t count on that.
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we → prefer → that
Things could actually get worse before they get better.
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they → get → ?
It’s pointing out the obvious to note that there are no cost-free trade wars.
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It → point → obvious
The government needs to acknowledge these realities.
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government → need → realities
The moment calls for a much more ambitious and meaningful affordability strategy — one that matches both the government’s own rhetoric and the costs of their own policies.
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that → call → policies
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