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Carney says as PM he would replace the Carbon Tax with something ‘more effective’

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From the Canadian Taxpayers Federation

By Franco Terrazzano 

Carney stumbles out the gate on carbon taxes

Prime minister hopeful Mark Carney is supposed to be the economic messiah sent to save the Liberals from the depths of polling purgatory.

But right out the gate, Carney showed he doesn’t have an answer to the most important question:

Will he keep the carbon tax?

Carney should have seen that question coming. His campaign leaked to the media that he would scrap the carbon tax. But when reporters asked him that question at his campaign kickoff in Edmonton, he went wonky and wobbly.

It should have been a yes or no answer. Instead, Carney served up an unappetizing word salad.

“If you are going to take out the carbon tax, we should replace it with something that is at least, if not more, effective,” Carney said. “Perception may be that it takes out more than the rebate provides, but reality is different, and Canadians will miss that money.”

Carney’s stance on the carbon tax is clear as mud and it’s bad for two key reasons.

First: he’d replace the carbon tax with something more “effective.”

The carbon tax has been very effective at sucking a lot of money out of the wallets of Canadians. And the carbon tax has been ineffective at hitting the government’s own emissions targets.

The carbon tax is an expensive failure.

Second: Carney parrots the insulting Trudeau government narrative that the carbon tax is all a “perception” problem.

The message is Canadians are too stupid to appreciate the genius of the carbon tax, and if the government could change the perception of the masses, the carbon tax would be just fine.

Worse for Carney, his answer was an assault on his own brand.

Carney’s the guy who is supposed to have his homework done. Instead, he shrugged at the obvious question, saying he’d release a “comprehensive” plan later.

In other words: just trust him.

But here’s the thing: Carney should have had an answer yesterday and taxpayers have trust issues.

When the Liberals won the 2015 election, their platform was sparse on details about their future signature policy. The carbon tax was buried on page 39 of their platform as “a price on carbon.”

The Liberal government imposed a carbon tax in 2019 misleading Canadians, saying the tax would stop at 11 cents per litre of gasoline in 2022.

“The commitment was to go up to 2022,” then environment minister Catherine McKenna said, shortly before the 2019 federal election. “There was no intention to go up beyond that, there’s no secret agenda.”

After the election, the Trudeau government announced it would keep cranking up the carbon tax every year until it cost 37 cents per litre in 2030. Filling up a minivan at that rate would cost nearly $30 extra in just the carbon tax.

The current Liberal government still won’t rule out future carbon tax hikes.

The government also claims most families get more back in rebates than they pay in the carbon tax, despite the Parliamentary Budget Officer issuing three reports confirming the carbon tax costs Canadians.

The carbon tax will cost the average family up to $399 this year, even with the rebates factored in, according to the PBO.

Liberal leadership hopefuls who want to earn trust with taxpayers must push the Trudeau cabinet to scrap the carbon tax immediately.

The next Liberal leader faces a daunting timeline.

When Parliament comes back on March 24, there will be a throne speech, then likely a flurry of confidence motions. This could bring down the government and trigger an election.

On April 1, the government is set to hike the carbon tax.

Does Carney want to hike the carbon tax during the first week of his election campaign?

If Carney is as savvy as we’ve been told, then his answer should be a loud “no.”

To prove to Canadians he’s opposed to the carbon tax, Carney must call on the Trudeau cabinet to scrap it right now.

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Trump announces UK will fast-track American products under new deal

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Quick Hit:

President Donald Trump on Thursday announced the framework of a new trade agreement between the United States and the United Kingdom, calling it a breakthrough that will eliminate red tape and fast-track American exports.

Key Details:

  • President Trump told reporters the UK would be “opening up the country” to American goods, particularly U.S. beef and other agricultural exports.

  • Although the current 10% tariff rate on the UK will remain, the agreement offers Britain some flexibility on imports like auto parts and aircraft components while laying the foundation for an “economic security agreement.”

  • Trump emphasized that the UK has agreed to speed up the customs process for American products: “There won’t be any red tape—very fast approvals.”

Diving Deeper:

President Donald Trump on Thursday revealed that the United States and the United Kingdom have finalized the framework for a new bilateral trade deal, marking the first formal economic pact since his administration’s imposition of “Liberation Day” tariffs last month. Speaking from the Oval Office, Trump said the deal would ease trade barriers and accelerate customs clearance for American exports, with a particular focus on agricultural products like beef.

“They’ll also be fast-tracking American goods through their customs process, so our exports go to a very, very quick form of approval, and there won’t be any red tape,” Trump said. While a 10% tariff on British goods remains in place, the agreement grants London some relief on imports of automobile and aircraft components and extends an invitation to join a broader “economic security agreement.”

Prime Minister Keir Starmer joined the announcement via speakerphone and praised the negotiating team for their work. “This has been under discussion for weeks,” Starmer said, highlighting the roles of Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer in brokering the deal.

The announcement underscores the growing rapport between Trump and Starmer, who previously met at the White House on February 27th. While the final terms of the deal are still being worked out, the Trump administration has positioned this framework as a significant win in its broader push to restructure global trade in favor of American producers.

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Global trade reorder begins in Trump deal with United Kingdom

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Seeking to reorder global trade with America at the center, President Donald Trump announced the framework of a trade deal with the United Kingdom on Thursday.

Prime Minister Keir Starmer, since 2024 leader of a nation that maintains a special relationship with the U.S. including a more even trade balance than with other countries, spoke with the president by phone during an Oval Office meeting Thursday morning.

“This is turning out to be a great deal for both countries,” Trump said.

The 78-year-old second-term Republican president said the deal would improve market access for U.S. products in the United Kingdom, and improve the relationship between the two countries. Trump said it was the first of many deals from his trade team.

The 62-year-old leader of the Labour Party said the deal would create new jobs in both nations.

“We can finishing ironing out some of the details, but there’s a fantastic platform here,” Starmer said, calling the deal “historic.”

Commerce Secretary Howard Lutnick said the U.S. has balanced trade with the United Kingdom. Lutnick said it would add $5 billion in market access to the U.S. Lutnick said the United Kingdom would get a 10% tariff on 100,000 automobile imports to the U.S., lower than the 25% tariff on foreign autos for other nations.

Lutnick said the lower tariff would protect jobs in the UK.

On social media, Trump wrote, “Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal – Something our past Presidents never cared about. Together with our strong Ally, the United Kingdom, we have reached the first, historic Trade Deal since Liberation Day. As part of this Deal, America will raise $6 BILLION DOLLARS in External Revenue from 10% Tariffs, $5 BILLION DOLLARS in new Export Opportunities for our Great Ranchers, Farmers, and Producers, and enhance the National Security of both the U.S. and the UK through the creation of an Aluminum and Steel Trading Zone, and a secure Pharmaceutical Supply Chain. This Deal shows that if you respect America, and bring serious proposals to the table, America is OPEN FOR BUSINESS. Many more to come — STAY TUNED!”

Trump announced a slate of higher tariffs on foreign nations on April 2, which he dubbed “Liberation Day” for American trade. On April 9, Trump paused those higher rates for 90 days to give his trade team time to make deals with other countries.

When Trump temporarily suspended the higher tariffs on April 9, he kept a 10% baseline tariff in place along with a 25% import duty on foreign autos and auto parts. He also kept 25% tariffs on foreign steel and aluminum.

Trump also imposed 145% tariffs on China, which retaliated with 125% tariffs on U.S. goods. Those tariffs remain in place, although the two nations are set to begin talks this weekend.

Economists, businesses and many publicly-traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from American families, and pay down the national debt.

A tariff is a tax on imported goods. The importer pays the tax and can either absorb the loss or pass the cost on to consumers through higher prices

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