There is no evidence of "traitors" in Canada's parliament plotting with foreign governments to interfere with elections, a Canadian public inquiry has said. The foreign interference commission's final report, released on Tuesday, said attempts by foreign states to meddle in recent elections were "troubling" but had "minimal impact". The inquiry did warn that disinformation posed an "existential threat" to the country's democracy. The end of the months-long inquiry comes in an election year in Canada, with a federal race expected as early as this spring. A parliamentary intelligence committee had said in a June report that some members of parliament are "witting or semi-witting" participants in foreign meddling. But the inquiry's commissioner Marie-Josée Hogue said in Tuesday's findings that she had seen no evidence of conspiracy by parliamentarians and that the June report "sometimes contained inaccuracies". "There are legitimate concerns about parliamentarians potentially having problematic relationships with foreign officials, exercising poor judgment, behaving naively and perhaps displaying questionable ethics," she also wrote. On disinformation, Ms Hogue said: "In my view it is no exaggeration to say that at this juncture, information manipulation (whether foreign or not) poses the single biggest risk to our democracy." The inquiry was called in September 2023 to investigate allegations of interference by China, Russia, India and other foreign actors. It was in response to a steady drip of detailed press reports, many based on leaked intelligence, of Chinese meddling in the 2019 and 2021 federal elections. There is no evidence the efforts altered the outcomes of either election. Over a number of months, the inquiry heard public testimony by witnesses including members of parliament, national security officials, senior government aides and Prime Minister Justin Trudeau. Tuesday's report, which included 51 recommendations, was critical of the government's response to interference, which it described as slow.. Coordination between "various players involved has not always been optimal", it also stated, while efforts to educate the public about interference was "piecemeal and underwhelming". Why is Canada so vulnerable to foreign meddling? Foreign meddling a 'stain' on Canada's elections - inquiry report Canadian MPs 'wittingly' aid foreign meddling - report In May, Ms Hogue released an interim report calling interference a "stain" on Canada's electoral process. The report found that China "stands out as a main perpetrator" of such interference. China "clandestinely leveraged" Canadian officials in an effort to help its "favoured" candidates win office in 2019, the interim report stated. Tuesday's report said India has become the "second-most active country engaging in electoral foreign interference in Canada". Both India and China have repeatedly denied allegations that they have meddled in Canada's affairs. The inquiry also heard from diaspora Canadians who spoke about being targeted - or having their families targeted - by foreign states. Those affected by the alleged meddling efforts have accused officials of not doing enough to combat it. Tuesday's report called transnational repression "a genuine scourge" that officials should take seriously. The federal government said it was reviewing the final report and was taking steps to improve election security.
The leader of Canada's most populous province has triggered a snap election, saying he needs a decisive mandate to fight Donald Trump's tariff threat. Ontario Premier Doug Ford, who has led the province for more than seven years, has emerged as a de-facto spokesperson for Canada in the tariff fight after Prime Minister Justin Trudeau announced he would step down in March. The early election call is a sign of how the new US president has upended politics in the country. The provincial campaign comes more than a year before the date required by law, with Ford citing the need for voters to give him another majority to "outlast" President Trump. "This is gonna be a battle for the next four years," he said. Trump has said he is considering 25% sweeping levies on Canadian goods, which could come as early as Saturday. Earlier this month, Ford appeared at a press conference wearing a hard-to-miss baseball cap emblazoned with the words "Canada Is Not for Sale". The cap's catchphrase was inspired by a line the premier uttered on Fox News as he made the rounds on US networks to defend Canada's interests in the possible coming trade war. His message resonated north of the border, earning him the nickname "Captain Canada" from columnists and pundits. The cap went viral after Ford wore it, with C$20,000 ($13,900; £11,100) worth of stock selling in less than two hours, according to broadcaster Radio-Canada. But Ford is facing criticism for the election call by those who worry he is throwing Ontario into an expensive campaign even as it faces the threat of costly tariffs. The premier is also facing questions from opponents over the politics of the early vote. His Progressive Conservative government has been embroiled in several controversies, including an ongoing criminal investigation into a deal to sell a piece of environmentally protected land for real estate development. Ford's election decision is an example of how Trump has affected Canadian politics, said media commentator and law professor Errol Mendes, with the University of Ottawa. The tariffs expected to have a devastating impact on the Canada's trade-dependent economy. The US is its largest trading partner. Canada offers to help Trump as it scrambles to avert tariff war Canada’s oil patch rattled by Trump's tariff threat Co-operate or else: Trump's Colombia face-off is warning to all leaders Prof Mendes told the BBC that the tariffs have shifted the calculus for Canadian politicians at all levels of government, from provincial premiers like Ford to those jockeying to replace Trudeau as federal Liberal leader. In that leadership race, front-runners Chrystia Freeland and Mark Carney have each focused on how they would respond to Trump's tariffs. Pierre Poilievre, the leader of the federal Conservatives whose message has centered mostly on domestic issues, has been pushed to provide his own plan for how he would deal with Trump. "The whole Trump thing has completely shaken up" political strategy in Canada, Prof Mendes said. For Ford, it has been an opportunity to be at the forefront of a critical national conversation, especially amid political chaos in Ottawa following Trudeau's decision to resign. His province stands to suffer significantly if the tariffs materialise. Ontario's economy is the largest in Canada, making up about 38% of the country's GDP, and has a significant automotive sector that is deeply integrated with the US. Ford has suggested that 500,000 of Ontario's 14.2 million people could lose their jobs if the US follows through in the blanket tariffs. The premier is known for his folksy, straight-talking style - one that has become synonymous with his family name and popularised by his late brother, former Toronto Mayor Rob Ford. "You can't let someone hit you over the head with a sledgehammer without hitting them back twice as hard, in my opinion," he stated earlier this month. He has called for a strong retaliation to any sweeping tariffs, suggesting that Canada cut off energy supply to the US and calling for provincial liquor stores to pull American booze off their shelves. In the same breath, he has proposed the idea of "Fortress Am-Can" - a catchy slogan to sell Trump on a stronger energy alliance between the two countries. By calling an election in his province early, Prof Mendes said Ford is playing several games of political chess as he seeks to solidify his position both in Ontario and as a voice for Canada. Prof Mendes said Ford has so far succeeded in drawing US attention to his message, more so than other premiers and Trudeau. He is expected to lead a delegation of Canadian premiers to meet US lawmakers in Washington DC twice next month. Domestically, however, he still faces significant challenges, primarily the ongoing investigation into his government's land dealings. "Now is the time (for Ford) to get the election done and get his massive new majority to weather that storm, whenever it happens," Prof Mendes said. An election could also secure him another term before the possible US tariffs take a bite out of the provincial economy. Despite the controversies, Ford has maintained a stronghold in Ontario. He has won a majority twice, and polls so far indicate he is headed for a third. He said Ford has proven himself to be a political survivor by communicating effectively with a working-class base, much like Trump. "He is connecting in terms of being able to fight, and fight fiercely for Canada," he said.
A hitman who was one of two people who shot and killed a man acquitted in the 1985 bombing of an Air India flight has been jailed for life in Canada without the possibility of parole for 20 years. Tanner Fox, 24, was sentenced on Tuesday by a British Columbia Supreme Court judge. Fox and Jose Lopez pleaded guilty in October to the second-degree murder of Sikh businessman Ripudaman Singh Malik in 2022. Lopez will be sentenced on Friday. The sentencing came after an emotional morning, in which Malik's relatives begged Fox to reveal who hired him to carry out the murder. "We plead with you to reveal the names of the people who hired you," said Malik's daughter-in-law Sundeep Kaur Dhaliwal, according to reporters inside the New Westminster courtroom. The two men entered their guilty pleas on the eve of their trial for first-degree murder. Malik was shot several times in his car outside his family business in Surrey, in the Canadian province of British Columbia, on the morning of 14 July 2022. Police found a burnt-out vehicle nearby. Prosecutor Matthew Stacey told the court that Fox and Lopez planned a "deliberate killing" of Malik. "They were financially compensated for killing him," he added. The killing happened more than a decade after Malik was acquitted in the devastating double bomb attack - Canada's deadliest terrorist attack in history. On 23 June 1985, Air India flight 182 from Canada to India blew up off the Irish coast, killing all 329 people on board, most of them Canadian citizens visiting relatives in India. About the same time, a second bomb exploded prematurely in Japan, killing two baggage handlers The bombings - widely believed to have been carried out by Canadian-based Sikhs in retaliation for India's deadly 1984 storming of the Golden Temple, the holiest shrine in the Sikh religion - remain Canada's deadliest terror attack. Following a two-year trial, Malik and his co-accused, Ajaib Singh Bagri, were both acquitted in 2005 of mass murder and conspiracy charges related to the two bombings, after a judge ruled that testimony against them was not credible. According to the agreed statement of facts, Fox and Lopez were contracted to kill Malik, but the evidence did not establish who had hired them. Malik's family has urged them to co-operate with police to bring to justice whoever had directed the killing. In her testimony to court on Tuesday, Malik's daughter-in-law said the lack of answers has left the family afraid for their safety. "This fear and anxiety comes from not knowing who hired you," she told Fox. "Are we next?" According to Fox's lawyer, the 24-year-old was born in Thailand and was adopted at age three by parents in Abbotsford, British Columbia. "It's impossible to say where he went awry, went wrong in his youth that took him to this horrible offence," lawyer Richard Fowler has said. In court, Fox stood up to apologise for his actions. "I'm sorry for all the pain and hurt that I've caused," he said.
President Donald Trump has said the US does not need Canadian energy, vehicles or lumber as he spoke to global business leaders at the World Economic Forum. Trump also reiterated his threat to impose tariffs on the country, saying it can be avoided if the neighbouring nation chose to "become a state" of the US. "You can always become a state, and if you're a state, we won't have a deficit. We won't have to tariff you," he said to gasps in the hall in Davos. Trump has threatened to impose up to 25% tariffs on Canadian imports, possibly by 1 February. The renewed threat of tariffs has been met with deep unease by the trade-dependent Canada. But it has also said it will consider significant countermeasures, including a "dollar-for-dollar" response if the Trump administration follows through. Roughly 75% of Canada's exports head south. In contrast, Canada accounts for a much smaller 17% of US exports, though it is the second largest US trading partner, behind Mexico. Trump in his remarks on Thursday said Canada had been "very tough to deal with over the years". "We don't need them to make our cars, we make a lot of them, we don't need their lumber because we have our own forests... we don't need their oil and gas, we have more than anybody," he told forum attendees via video link from Washington DC. Trump reiterated the assertion that the US has a trade deficit with Canada of between $200bn and $250bn. It's not clear where he got that figure. The trade deficit with Canada - expected to be $45bn in 2024 - is mostly driven by US energy demands. The North American auto industry also has highly integrated supply chains. Auto parts can cross the borders between the US and Mexico and Canada multiple time before a vehicle is finally assembled. Trump has also tied the tariffs to border security, saying it will be imposed unless Canada increases security at the shared border. Canadian Prime Minister Justin Trudeau has repeatedly said that everything is on the table in response if the tariffs are imposed. That includes a tax or embargo on energy exports to the US, though some of Canada's provincial leaders disagree with that response. On Thursday, Trudeau told reporters that Canada's goal is to avoid US tariffs altogether but it will step up its response "gradually" to seek the quick removal of levies if they are imposed. Canada is also pitching itself as a reliable trading partner and a secure source to the US for energy and critical minerals as it lobbies American lawmakers in a bid to avoid the tariffs. Canada offers to help Trump as it scrambles to avert tariff war Trudeau says 'not a snowball's chance in hell' Canada will join US Economists suggest the US depends on Canadian products for energy security. In 2024, Canadian energy exports came to almost $170bn (C$244bn), according to a recent analysis by TD Bank economists. Trump also said on Thursday that businesses should make their products in the US if they want to avoid tariffs. Tariffs are a central part of Trump's economic vision - he sees them as a way of growing the US economy, protecting jobs and raising tax revenue. The new president has ordered federal officials to review US trade relationships for any unfair practices by 1 April. With reporting from Faisal Islam, economics editor, in Davos.
Facing a looming tariff war with the US, Prime Minister Justin Trudeau has threatened the stick - now, he's hoping a carrot will work. In a change of tone from his previous warnings about economic hardships, the Canadian leader is promising to help Donald Trump achieve America's "golden age," which was alluded to in the US president's inauguration speech. "Canada is a safe, secure and reliable partner in an uncertain world," Trudeau said this week. The alternative, he said, "would be more resources from Russia, China or Venezuela". The focus on American prosperity and national security is the latest pivot by Canadian officials as the country tries to find its footing with the new Trump administration, and - more urgently - avert the threat of blanket 25% import tariffs imposed by the US, its largest trade partner and closest ally. Canada has been preparing a retaliatory response for weeks, and was ready for a potentially devastating trade war to be launched as soon as President Donald Trump took office. On Monday, it looked like Canada had gotten a reprieve. In his inaugural address, Trump made no mention of Canada. But relief was short-lived. In an off-the-cuff response to a reporter's question in the Oval Office late on Monday night, Trump flipped the script by musing about placing steep levies on 1 February on both Canada and Mexico. Now with a deadline looming, Canada must decide which tactic to take - retaliation, or appeasement. In the get-tough approach, Ottawa has eyed targeted tariffs in return on goods like Florida orange juice - to send a message directly to Trump - as well as a "dollar-for-dollar" response. It is an approach that worked during Trump's first term when he placed tariffs on Canadian steel and aluminium. This time, however, the US president's objectives and timelines are less clear, and Canada has struggled to carve out a response. Making matters more difficult is a lack of consensus from Canadian officials on how to respond. Trudeau, who is deeply unpopular and will soon step down, has repeatedly signalled that everything is on the table, including the "nuclear option" to tax or embargo energy exports to the US. Not all are in agreement, with Premier Danielle Smith of the oil-rich province Alberta vehemently opposing using energy as a bargaining chip. Both Trudeau and Smith paid personal visits to Florida to appeal directly to Trump. In remarks on Tuesday, Trudeau appeared slightly exasperated. "We've been here before," he told reporters. "The first Trump presidency represented moments of uncertainty and threats of instability that we were able to work through constructively." Meanwhile, Canada's ambassador in Washington DC, Kirsten Hillman, signalled that the country might be closer to understanding the position of the Trump administration. "We have now moved from a more abstract discussion to a more concrete discussion", she said, pointing to the "America First" trade review Trump commissioned on Monday. It lays out US trade priorities - many centred on national security - and the Trump picks who will conduct that review. They include Scott Bessent, nominated for treasury secretary, Howard Lutnick for commerce, and Jamieson Greer for US Trade Representative. All still need to be confirmed by the US Senate. The tariff threat has been met with deep unease by trade-dependent Canada. Roughly 75% of its exports head south. In contrast, Canada accounts for a much smaller 17% of US exports. "The US can afford to have a long trade war with Canada, and Canada less so," Theo Argitis, managing director of the Ottawa-based public affairs firm Compass Rose Group, told the BBC. "You have this asymmetry there that puts Canada in a very difficult negotiating position." Has Trump promised too much on US economy? 'Trump 2.0' looms large over the global economy Canada's oil patch rattled by Trump's tariff threat Would Donald Trump's tariffs hurt US consumers? Trump had initially tied the tariffs to border security, saying they will be implemented until Canada and Mexico make moves to limit the flow of fentanyl and unlawful migrants into the US. In a bid to avoid the tariffs altogether, Ottawa had promised to implement C$1.3bn ($900m; £700m) worth of new security measures along its US border. But this appears to not be enough, with Trump doubling down on his threats, accusing Canada on Tuesday for allowing "millions" of people to come into the US unlawfully. Trump has also criticised Canada over its defence spending and what he says is a trade deficit between the two countries. Experts say the deficit is due to a number of factors, including the fluctuating price of energy - one of the main commodities Canada sells to the US. There is also reported disagreement within Trump's orbit over when and how tariffs should be implemented. At a call with reporters before the president's inauguration, Canada's energy minister Jonathan Wilkinson said there is uncertainty about Trump's ultimate objectives. This "uncertainty and chaos" is often used by Trump as a negotiating strategy, Mr Argitis noted. "If he scares the hell out of us, he probably thinks that we're going to be ready to concede things. He may or may not be right there," he said. Tariffs seem to be part of a larger policy position by Trump, a self-described "Tariff Man" who has also threatened levies on Chinese, European and Russian exports. He has said he plans to create an External Revenue Service to collect "foreign trade-related revenues", including ones generated from tariffs. The Trump administration is also reviewing a long-standing free trade agreement between Canada, the US and Mexico ahead of its planned renegotiation in 2026. Sources have told US media that Trump wants to begin those talks sooner. The situation - and the uncertainty around it - has left Canada with few options. Economists have warned that Canada's GDP could take a hit of up to 5.6% if 25% blanket US tariffs are imposed on Canadian goods, depending on how, and whether, Canada retaliates. Given this, Mr Argitis said that Canada is focused primarily on avoiding the tariffs altogether, by pitching a stronger alliance with the US on energy and national security. Canada is also talking about diversifying trade to reduce its heavy reliance on the US as a partner, but Mr Argitis noted the country has struggled to do so in the past, primarily due to its close geographic and cultural proximity to the US. "There's been no evidence that Canada is able to diversify at all, and so we're kind of stuck with option number one, which is to avoid a trade war at all costs," he said. Ultimately, he added, the negotiating advantage rests with Trump.
After bracing for weeks for a trade war with the US, Canada has - for now - evaded tariffs that Donald Trump threatened to impose on the country as soon as he takes office. But Trump said on Monday the tariffs on Canada and Mexico could come on 1 February as he ordered federal officials to review US trade relationships for any unfair practices - including relationships with Canada, Mexico and China. The incoming president has pledged import duties of 25% on Canada and Mexico, as well as 10% on global imports and 60% on Chinese goods. Prime Minister Justin Trudeau said on Tuesday: "'If the president does choose to proceed with tariffs, Canada will respond - and everything is on the table." Canadian officials initially appeared relieved at the reprieve the review that Trump has ordered offered, but warned the tariff threat was still real. Then in the Oval Office late in the evening, Trump told reporters he was considering 1 February as a date his administration might impose 25% levies on Canada and Mexico. Canada is highly dependent on trade with the US, with roughly 75% of its exports heading south. Trudeau, speaking to reporters on Tuesday morning, said there was "always going to be a certain amount of unpredictability and rhetoric coming out from this administration". He said Canada offered the US "a safe, secure and reliable partner in an uncertain world". In an appeal to Trump's promise of an American "golden age", Trudeau noted Canada is a source of commodities like energy and critical minerals the "American economy is going to need in order to grow". In November, Trump said his administration would impose across -the-board tariffs on Canadian and Mexican goods in an effort to force the countries to crack down on illegal immigration and drug smuggling into the US. Canada's Foreign Minister Melanie Joly last week had warned the tariffs could spark the "biggest trade war between Canada and the US in decades". Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars. Trudeau said he supports "the principle of dollar-for-dollar matching tariffs". Members of Trudeau's cabinet are gathered in Quebec for two days of meetings focused on the US-Canada relationship. Canadian officials say they will continue with their efforts to lobby US counterparts on the benefits of trade between the two nations, which totaled an estimated $909bn in 2022. IN PICTURES: Key moments of the inauguration WATCH: Inauguration day in two minutes FASHION: Melania's striking hat and other eye-catching looks Canada, the US and Mexico renegotiated a trilateral free trade deal during Trump's first term in office. The presidential memo Trump signed after his inauguration directs federal agencies to assess how that deal affects American "workers, farmers, ranchers, service providers, and other businesses". It also asked the commerce and homeland security secretaries to assess the "unlawful migration and fentanyl flows" from Canada and Mexico. That review is due on 1 April. While both the northern and southern US borders have reported unlawful crossings and drug seizures, the numbers at the border with Canada are considerably lower than those at the Mexico border, according to official data. In December, Canada promised to implement C$1.3bn ($900m; £700m) worth of new security measures along its US border, including strengthened surveillance and a joint "strike force" to target transnational organised crime. Tariffs are a central part of Trump's economic vision - he sees them as a way of growing the US economy, protecting jobs and raising tax revenue. But many economists have warned the policy could lead to higher prices for Americans and pain for companies hit by foreign retaliation.
After months of speculation about his political ambitions, former Bank of Canada and Bank of England governor Mark Carney has announced his run for leader of Canada's governing Liberal Party. Mr Carney formally launched his bid in his hometown of Edmonton, Alberta, on Thursday at a hockey rink where he learned how to skate as a young boy. "I'm doing this because Canada is the best country in the world, but it could still be even better," Mr Carney said, as he stood before a backdrop of a giant Canadian flag. If he wins, the 59-year-old will succeed Prime Minister Justin Trudeau and lead the country into the next general election, which will take place this year. Earlier this month, Trudeau announced his intent to resign after nine years in office once a new Liberal leader is selected. At Thursday's announcement, Mr Carney sought to ground himself to his Canadian roots and distinguish himself from both Trudeau and his opponents across the political aisle. While he has recently served as an economic advisor to Trudeau, Mr Carney is the only candidate in the Liberal Party's leadership race who is not an elected member of Trudeau's government. Who might replace Trudeau as Liberal Party leader? The man who could become Canada's future PM Mark Carney, the 'unreliable boyfriend' who ran UK's central bank He has branded himself as an outsider who brings a wealth of financial knowledge to a country that is struggling with a sluggish economy. Under Liberal Party rules, any member of the party - including those who are not elected officials - can run for leadership. They are expected to seek a seat in parliament in the next election, however, which Mr Carney said he intends to do. In his pitch to Canadians, Mr Carney outlined challenges facing the country, like a housing affordability crisis, stagnant wages and the threat of climate change. "Too many people are falling behind," he said. He also noted the tariff threat from US President-elect Donald Trump, who takes office on Monday, saying that Canada is facing extraordinary times. Trump has suggested imposing potential 25% tariffs on Canadian goods. "I've helped managed multiple crises and I've helped save two economies," Mr Carney said. "I know how business works, and I know how to make it work for you." Mr Carney, who is Harvard and Oxford educated, brings a range of economic experience to the race. He previously worked at the investment bank Goldman Sachs, and served as Canada's central banker, from 2008 - when the country became the first G7 nation to raise interest rates after the financial crisis - to 2013. He then moved to London, where he served as governor of the Bank of England until 2020. During his tenure, he led efforts to support the UK economy through Brexit, though he faced criticism that some of his early interventions were overly political. Mr Carney is also known as an advocate for environmental sustainability. In 2019 became a UN Special Envoy for Climate Change, and in 2021 launched the Glasgow Financial Alliance for Net Zero, a grouping of banks and financial institutions working to combat climate change. In recent months, Mr Carney advised Trudeau on economic matters. On Thursday, he criticised the sitting prime minister for his handling of the file. "I know I'm not the only Liberal in Canada who believes that the prime minister and his team let their attention wander from the economy too often," Mr Carney said. Mr Carney's opponents in the Liberal leadership race include a number of sitting members of parliament. Former finance minister Chrystia Freeland is also expected to announce a bid in the coming days. Freeland resigned from her post in December over a break from Trudeau for his handling of Canada's fiscal matters. Whoever wins the Liberal leadership race will face-off against the opposition Conservatives, who have a strong lead in the polls. Their leader, Pierre Poilievre, has championed a small government and a return to "common sense" politics. Mr Carney called Poilievre's ideas for Canada "naïve" and "dangerous". The Conservatives have sought to link Mr Carney with Trudeau's unpopular government, saying he is "just like Justin". They also note he has been a champion of carbon pricing, which is Trudeau's signature climate policy and has been met with a mixed reaction in Canada. Mr Carney has advocated for a price on carbon, but appeared to recently back away from the policy, telling a Senate committee in May that it has "served a purpose up until now". On Thursday, he said that the carbon tax should be replaced with a policy "that is at least, if not more, effective" on climate without hurting Canadians' bottom line. Liberals are scheduled to elect their next leader on 9 March. The next Canadian general election must be held on or before October of this year, and could come as early as this spring.
Former Canadian Finance Minister Chrystia Freeland intends to run to lead the country's governing Liberal Party. In a statement posted on Friday to X, formerly known as Twitter, Freeland expressed her intention to run and said she would hold a formal campaign launch in the coming days. "I'm running to fight for Canada," she wrote. Freeland recently fell out with Prime Minister Justin Trudeau over the direction of the country's financial policies. Her resignation from her post in December was a blow to Trudeau's already-shaky hold on the Canadian government, helping to usher in his own resignation after nine years as prime minister. Who might replace Trudeau as Liberal Party leader? Canada's finance minister quits over Trump tariff dispute with Trudeau Freeland had long been one of Trudeau's closest allies in his Liberal Party. She held the key role of Canada's finance minister starting in 2020 - the first woman to hold the position - and helped to lead the country through the pandemic and its aftermath. The two disagreed on how to address US President-elect Donald Trump's threat of tariffs, among other financial policies as Canada faced a C$60b deficit ($42bn; £33bn). Following his win in November, Trump, who takes office on Monday, suggested that he would impose potential 25% tariffs on Canadian goods. In a public resignation letter, Freeland criticised Trudeau's leadership, denounced his use of "costly political gimmicks" and said Canada must push "back against 'America First' economic nationalism". Freeland further addressed Trump's tariff threats in a piece she penned on Friday for the Toronto Star newspaper, arguing that Canada "must take President Trump at his word." "Florida orange growers, Michigan dishwasher manufacturers and Wisconsin dairy farmers: brace yourselves," she wrote, arguing that Canada should retaliate hurts if Trump imposes his promised 25% tariffs. With Trudeau stepping down, his party must now find a new leader to compete in a general election. Liberals will vote for their new leader on 9 March. Former Bank of Canada and Bank of England governor Mark Carney announced his run on Thursday. Freeland had been expected to run against him in seeking the party's top position. The two already have received endorsements from a handful of Liberal MPs. Born to a Ukrainian mother in the western province of Alberta, the 56-year-old, who attended Oxford as a Rhodes Scholar, was a journalist before entering politics. She entered the House of Commons in 2013, representing a central Toronto riding, and two years later joined Trudeau's cabinet with a trade brief after he swept the party to power. Freeland has been credited with helping renegotiate the free trade agreement with Canada, the US and Mexico during Trump's first term in office, in talks that were often described as tense. After her resignation in December, Trump referred to her as "toxic" in a post on Truth Social, and remarked that "she will not be missed." If Freeland wins the Liberal Party leadership, she would face-off with Conservative leader Pierre Poilievre, whose party is leading in national polls, in the next general election. On Friday morning, Poilievre released a video highlighting her partnership with Trudeau over the years under his government. "She's just like Justin," the Conservative leader said. The next Canadian general election must be held on or before October of this year, and could come as early as this spring.
Canadian political leaders say "nothing is off the table" when it comes to responding to potential 25% tariffs from the US, days before they could come into force. But strains are showing in "Team Canada" when it comes to whether energy supply should be a tool in a possible tariff war with the US. President-elect Donald Trump, who takes office on Monday, has threatened to immediately impose levies on Canadian goods in an effort to force the country to crack down on illegal immigration and drug smuggling into the US. On Wednesday, Canadian Prime Minister Justin Trudeau met provincial and territorial premiers to discuss the country's coordinated response. "Nothing is off the table," Trudeau said at a news conference with the premiers after the day-long meeting. "What we've agreed on is we have to respond to the challenge we're facing and that the burden is shared across the country." "We will stand up for Canada, we will protect Canadians," he added. The prime minister also said there would "absolutely" be support for sectors affected should the tariffs materialise. Roughly 75% of Canadian exports go to the US, and economists say the levies would be devastating for the country. Canada is preparing a number of counter measures should the Trump administration move forward either with a blanket 25% levy on all goods or with a more targeted approach. Canadian legislators have been lobbying US counterparts in recent weeks in a bid to avoid the tariffs, including personal visits to Trump's Mar-a-Lago resort in Florida. Ottawa also promised to implement C$1.3bn ($900m; £700m) in sweeping new security measures along the country's nearly 9,000km-long (6,000 mile) border with the US to allay some of Trump's concerns. But there has been a growing worry that the tariffs - at least in some form - are inevitable. Trump has long been a proponent of trade tariffs, calling them the "greatest thing ever invented". They are a central part of his economic vision. He sees them as a way of growing the US economy, protecting jobs and raising tax revenue. Canadian officials argue they would undermine the US economy, increase inflation for American consumers - including raising prices at the petrol pump - and hamper investment. They also warn tariffs could undermine national security, given Canada, a US ally, is a key source of energy and critical minerals. Would Donald Trump’s tariffs hurt US consumers? Canada’s oil patch rattled by Trump's tariff threat Trump tariff threat puts a strain on Canada-Mexico ties While there has been a push for a unified approach to the threat, cracks in the coalition were apparent on Wednesday. Alberta Premier Danielle Smith did not sign the joint statement released after the meeting, which she attended virtually. On social media, she said the oil-rich province will not agree to export tariffs on energy or other products, or a ban on their exports. "We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies," she said. Trudeau and the premiers of Ontario, Quebec, and Newfoundland are among those open to either imposing counter tariffs on energy or cutting off energy exports to the US. "I see energy as Canada's queen in this game of chess," said Newfoundland and Labrador Premier Andrew Furey prior to the meeting. "We don't need to expose our queen too early. The opposition does need to know the queen exists but they don't need to know what we do with the queen." Around 40% of the crude that runs through US oil refineries is imported, and the vast majority of it comes from Canada. It also supplies the US with natural gas and electricity. "We're all united in that we have to act in the robust way," said Trudeau when asked about Smith's response. According to various analyses, Canada's GDP could take a hit of between 1.8% and 3.38% and 2.6% to 5.6% if 25% blanket tariffs are imposed on Canadian goods, depending on how, and whether, Canada retaliates. The US GDP would be pinched by between 0.9% to 1.6%, according to those reports. Knowing the pain of responding is not proportional "means that we have to be smarter in how we [Canada] respond - and that's tricky," said Drew Fagan, a professor at the University of Toronto's Munk School of Global Affairs and Public Policy. "It's hard to be strategic with an administration like this whose thinking is often a little bit more off the cuff." Ontario Premier Doug Ford has suggested up to 500,000 jobs could be lost in his province - which forms core part of the country's auto sector - under the current proposed tariffs. Alberta could see 50,000 jobs lost, according to financial forecasts. The expected tariff fight comes as Canada is facing domestic political challenges. Trudeau will step down as prime minister once his governing Liberal Party selects a new leader in March. He said on Wednesday he would not run in the next election. An election will be held this year in Canada, possibly as early as this spring. With additional reporting by Nadine Yousif in Toronto.
Canadian Prime Minister Justin Trudeau has re-iterated that Canada has no intention to become the 51st state of the US. "It's not going to happen," he said. Speaking to former White House press secretary Jen Psaki on MSNBC's "Inside" on Sunday, Trudeau discussed President-Elect Donald Trump's repeated comments that Canada could become a part of the US. "I know as a successful negotiator he likes to keep people off balance. The 51st state, it's not going to happen," he said. The prime minister, who has faced growing unpopularity in the polls ahead of a national election, announced that he will step down in March after his Liberal Party picks a new leader. Trump has upped the ante recently with repeated comments about annexing Canada. "You get rid of that artificially drawn line, and you take a look at what that looks like, and it would also be much better for national security," Trump said at a press conference at his Florida Mar-a Lago home on Tuesday. "Canada and the United States, that would really be something." He has even gone so far as to call the prime minister "Governor Trudeau," a position usually held by leaders of US states. But on television on Sunday, Trudeau said he pays those jabs no mind. "I tend to focus on the substantive things, and not on people choosing nicknames for me. I mean, if I was that thin-skinned I probably wouldn't last that long in politics." One of the big reasons Canada will not join America, Trudeau said, is simple: Canadians do not want to. When trying to define their national identity, Trudeau said Canadians are likely to say "we're not Americans", amongst other things. Earlier this week, Trudeau put it more bluntly, saying there was not "a snowball's chance in hell" that the two countries would become one. Trudeau said that what he is concerned about is the impact of tariffs on Canadians and Americans. Tensions between Trump and Canada have been simmering since the president-elect announced his plan to implement 25% tariffs on goods coming from Canada. The move would have a significant impact on Canada's economy, and could lead to retaliatory tariffs. "Canadians are incredibly proud of being Canadian, but people are now talking about that rather than the impact that 25 percent tariffs," Trudeau said. "No American wants to pay 25 percent more for electricity or oil and gas coming in from Canada." Meanwhile, Alberta Premier Danielle Smith posted on social media that she had met with Trump at his Mar-a-Lago residence over the weekend to discuss the important of US-Canada energy partnerships. Alberta is a major oil and gas exporter.