As cross-border trade talks heat up ahead of looming U.S. tariff threat, PM Carney on ‘reduced schedule’ in Italy


A look ahead at the week in federal politics.

As the clock ticks down to the latest White House-imposed tariff deadline — namely, Aug. 19, when the new 50 per cent levy that U.S. President Donald Trump has threatened to slap on billions of dollars in Canadian exports is currently slated to come into effect — Prime Minister Mark Carney is heading overseas once again — this time, to Italy for what his office is framing as “personal commitments” that will keep him on a “reduced schedule” until Aug. 17.

He will, however, be maintaining “close contact with his team and officials on several priorities, including the ongoing Canada – U.S. trade negotiations,” according to the notice sent to media on Saturday.

With just days to go before the new tariffs — which, unlike previous waves, will also apply to products covered under the existing Canada – U.S. — Mexico trade deal —  are set to kick in, Canada – U.S. Trade Minister Dominic LeBlanc is reportedly heading back to Washington, D.C. this week after holding what he described as a “constructive and detailed meeting” with his American counterpart, Jamieson Greer, last week.

Although LeBlanc was characteristically circumspect on the substance of the talks, several media outlets are reporting that Canada “is preparing to meet some U.S. demands … in exchange for tariff relief” — including, but not limited to “ending bans on American alcohol sales,” according to CBC News.

Citing unnamed sources, the broadcaster notes that, “in addition to ending the booze bans, the Canadian side is considering lifting retaliatory tariffs on U.S. autos and making some changes on dairy,” but “didn’t say what changes were on the table in regards to the dairy sector.”

A separate dispatch from Canadian Press cites its own unnamed source as stating that Carney’s government “has told the provinces not to expect major changes to the supply management regime.”

For his part, Conservative Leader Pierre Poilievre fired off a letter to Carney, accusing him of having “backed down to one American demand after another while getting nothing in return,” and challenged him to deliver the “good deal” that his party alleges Carney “promised” during the election campaign.

“You conceded that your wait-and-see approach failed by reversing course to now negotiate on terms you did not decide,” the letter contends. “No more caving.”

As yet, Carney’s office does not appear to have responded to the letter.

In addition to keeping tabs on the cross-border trade standoff, Carney will undoubtedly also be getting regular updates on the worsening wildfire situation on the West Coast, which prompted B.C. Premier David Eby to declare a province-wide state of emergency on Saturday afternoon after the expanding Bald Range blaze triggered an evacuation order for the community of Summerland as well as other areas in the Okanagan Lake region.

Hitting the ministerial circuit:

  •  Transport Minister Steven MacKinnon heads to Hamilton, Ont. to share the details of “new measures” that, as per the advisory, will “strengthen interprovincial trade of Canadian steel,” as well as “domestic supply chains.” (Monday a.m.)
  • Defence Minister David McGuinty will “mark” what the advisory is billing as a “major milestone” for the Regulatory and Security Science Main (RSS Main), the “world-class scientific research hub” that, according to the background documentation, “is replacing at least seven aging federal science facilities with new multi-purpose, modernized and sustainable facilities at the existing location of the Canadian Food Inspection Agency’s Ottawa laboratory on Fallowfield Road,” which “will accommodate approximately 275 scientists and researchers from four science-based departments and agencies,” with the “first component” on track to open in 2031. (Monday a.m.)
  • Housing Minister Gregor Robertson starts the week by unveiling fresh federal “investments” that will “help businesses and organizations across British Columbia navigate trade disruptions and seize new opportunities” during a morning appearance in Burnaby, B.C. (Monday a.m.)
  • Crown-Indigenous Relations Minister Rebecca Alty teams up with Emergency Management Minister Eleanor Olszewski to highlight “infrastructure investments” at the Mike Zubko Airport in Inuvik. N.W.T. (Monday p.m.)
  • Later this week, Fisheries Minister Joanne Thompson heads to Prince Edward Island to promote a fresh tranche of federal support for “fisheries and aquaculture” during an afternoon visit to Red Head Harbour with local Liberal MP Kent MacDonald. (Tuesday p.m.)

Also on the radar: After spending most of July in Quebec — where, as The Globe and Mail notes, in addition to three hours a day of intensive French training, he also found time to go door-knocking in Montreal — New Democrat Leader Avi Lewis will be back in Toronto for what the party advisory describes as the “official launch” of  Beaches — East York byelection hopeful Shannon Devine’s bid to win the riding vacated by now former Liberal MP Nathaniel Erskine Smith earlier this year. (Tuesday p.m.)

Earlier in the day, Lewis will join Devine for an afternoon “community canvass” — and a “post-canvass media availability” — before the kickoff event, which will also include an appearance by former Toronto city councillor Janet Davis and other “surprise guests,” as per the notice.

Back in the precinct, FINANCE committee members are scheduled to hold a closed-door session to go through the draft report on what they heard during the opening round of pre-budget consultations . (Wednesday a.m.)



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