Business
Bank of Canada admits eliminating carbon tax could reduce inflation by 16%

From LifeSiteNews
Bank of Canada Governor Tiff Macklem testified that cutting the tax would create a one-time reduction of inflation by 0.6%, which is 16% of Canada’s total inflation rate
Bank of Canada Governor Tiff Macklem admitted that Trudeau’s carbon tax is responsible for 16% of Canada’s current inflation rate.
On October 30, Macklem told the House of Commons finance committee that eliminating the carbon tax would reduce inflation by 0.6%, which is 16% of Canada’s total inflation rate.
“That would create a one-time drop in inflation of 0.6 percentage points,” Macklem told Conservative MP Philip Lawrence, who had questioned the tax’s effect on the economy.
Currently, Canada’s inflation rate is at 3.8% which means that a decrease of 0.6% by eliminating the tax would result in a 16% decrease in the overall inflation.
Lawrence further questioned if eliminating the tax would ease the economic situation, considering it would mean a “sizable drop in inflation.” However, Macklem explained that cutting the tax would only affect inflation for one year.
“It would be helpful if monetary and fiscal policy was rowing in the same direction,” he added, explaining that government spending has made keeping interest rates steady a difficult task.
“Any standard economic textbook will tell you if you cut government spending that will tend to slow growth, raise the unemployment rate, and reduce inflation,” Macklem explained.
In September, Macklem admitted that food costs are of particular concern as “[m]eat’s up six percent, bread’s up 13 percent, coffee’s up eight percent, baby food’s up nine percent. If you look at food overall it is up nine percent.”
Macklem revealed at the time that food prices are rising significantly faster than the headline inflation rate – the overall inflation rate in the country – as staple food items are increasing at a rate of 10 percent to 18 percent year-over-year.
To combat this inflation, the Bank of Canada has raised interest rates to 5 percent, the highest benchmark rate in 22 years. Another increase is expected in October.
In addition to deficit spending, others have pointed to the Trudeau government’s ongoing carbon taxes and energy regulations as one of the reasons for the sharp increases in the cost of living.
According to a March report, Trudeau’s carbon tax is costing Canadians hundreds of dollars annually as government rebates remain insufficient to compensate for the increased fuel prices.
Last week, Prime Minster Justin Trudeau suspended his carbon tax on home heating oil, amid rising costs of living and his decreasing popularity across multiple polls.
Under the new regulations, home heating oil is exempted from the carbon tax, while rural residents will receive a 10 percent increase in the carbon tax rebate payments. The increase is set to climb to 20 percent beginning next year.
In March, the Parliamentary Budget Officer calculated the total carbon tax costs for fuel in 2023 minus government rebates. The steepest increase is for Albertans, who will pay an average of $710 extra per household. Following Alberta is Ontario with a $478 increase.
Prince Edward Island households will pay an extra $465, Nova Scotia $431, Saskatchewan $410, Manitoba $386, and Newfoundland and Labrador $347.
The increased costs are only expected to rise as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.
Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.
Automotive
Trump warns U.S. automakers: Do not raise prices in response to tariffs

MxM News
Quick Hit:
Former President Donald Trump warned automakers not to raise car prices in response to newly imposed tariffs, arguing that the move would ultimately benefit the industry by strengthening American manufacturing. However, automakers are signaling that price increases may be unavoidable.
Key Details:
- Trump told auto executives on a recent call that his administration would look unfavorably on price hikes due to tariffs.
- A 25% tariff on imported vehicles and parts is set to take effect on April 2, likely driving up costs for U.S. automakers.
- Industry analysts predict vehicle prices could rise 11% to 12% in response, despite Trump’s insistence that tariffs will benefit American manufacturing.
Diving Deeper:
In a conference call with leading automakers earlier this month, former President Donald Trump issued a stern warning: do not use his new tariffs as an excuse to raise car prices. While Trump presented the tariffs as a boon for American manufacturing, industry leaders remain unconvinced, arguing that the financial burden will inevitably lead to higher costs for consumers.
Trump’s administration is pressing ahead with a 25% tariff on all imported vehicles and parts, set to take effect on April 2. The move is aimed at reshaping trade dynamics in the auto industry, encouraging domestic manufacturing, and reversing what Trump calls the damaging effects of President Joe Biden’s electric vehicle mandates. Despite this, automakers say that rising costs on foreign parts—which many depend on—will leave them little choice but to pass expenses onto consumers.
“You’re going to see prices going down, but going to go down specifically because they’re going to buy what we’re doing, incentivizing companies to—and even countries—companies to come into America,” Trump stated at a recent event, reinforcing his stance that the tariffs will ultimately lower costs in the long run.
However, industry insiders are pushing back, warning that a rapid shift to domestic production is unrealistic. “Tariffs, at any level, cannot be offset or absorbed,” said Ray Scott, CEO of Lear, a major automotive parts supplier. His concern reflects broader anxieties within the industry, as automakers calculate the financial strain of the tariffs. Analysts at Morgan Stanley estimate that vehicle prices could increase between 11% and 12% in the coming months as the new tariffs take effect.
Automakers have been bracing for the fallout. Detroit’s major manufacturers and industry suppliers have voiced their concerns, emphasizing that transitioning supply chains and manufacturing operations back to the U.S. will take years. Meanwhile, auto retailers have stocked up on inventory, temporarily shielding consumers from price hikes. But once that supply runs low—likely by May—the full impact of the tariffs could hit.
Within the Trump administration, inflation remains a pressing concern, though Trump himself rarely discusses it publicly. His economic team is aware of the potential for tariffs to drive up costs, yet the administration’s stance remains firm: automakers must adapt without raising prices. It remains unclear, however, what actions Trump might take should automakers defy his warning.
The auto industry isn’t alone in its concerns. Executives across multiple sectors, from oil and gas to food manufacturing, have been lobbying against major tariffs, arguing that they will inevitably result in higher prices for American consumers. While Trump has largely dismissed these warnings, some analysts suggest that public dissatisfaction with rising costs played a key role in shaping the outcome of the 2024 election.
With the tariffs set to take effect in just weeks, automakers are left grappling with a difficult reality: absorb billions in new costs or risk the ire of a White House determined to remake America’s trade policies.
Business
Labor Department cancels “America Last” spending spree spanning five continents

MxM News
Quick Hit:
The U.S. Department of Labor has scrapped nearly $600 million in foreign aid grants, including $10 million aimed at promoting “gender equity in the Mexican workplace.”
Key Details:
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Labor Secretary Lori Chavez-DeRemer and Deputy Secretary Keith Sonderling were credited with delivering $237 million in savings through the latest round of canceled programs.
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Among the defunded initiatives: $12.2 million for “worker empowerment” efforts in South America, $6.25 million to improve labor rights in Central American agriculture, and $5 million to promote women’s workplace participation in West Africa.
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The Department of Government Efficiency described the cuts as necessary to realign U.S. labor policy with national interests and applauded the elimination of all 69 international grants managed by the Bureau of International Labor Affairs.
Diving Deeper:
The U.S. Department of Labor on Wednesday canceled $577 million in foreign aid grants, including a controversial $10 million program aimed at promoting “gender equity in the Mexican workplace,” according to documents obtained by The Washington Post. The sweeping decision to terminate all 69 active international labor grants comes as part of a larger restructuring effort led by John Clark, a senior DOL official appointed during the Trump administration.
Clark directed the department’s Bureau of International Labor Affairs (ILAB) to shut down its entire grant portfolio, citing a “lack of alignment with agency priorities and national interest.” The memo explaining the cancellations was first reported by The Washington Post and highlights a broader shift in federal labor policy toward domestic-focused initiatives.
Among the eliminated grants were high-dollar projects that had drawn criticism from watchdog groups for years. These included $12.2 million designated for “worker empowerment in South America,” $6.25 million targeting labor conditions in Honduras, Guatemala, and El Salvador, and $5 million to elevate women’s workplace participation in West Africa. Other defunded programs involved $4.3 million to support foreign migrant workers in Malaysia, $3 million to improve social protections for internal migrants in Bangladesh, and $3 million to promote “safe and inclusive work environments” in Lesotho.
The Department of Government Efficiency, also involved in the review, labeled the grants as “America Last” initiatives, and pointed to the lack of measurable outcomes and limited benefits to American workers. The agency commended the leadership of Labor Secretary Lori Chavez-DeRemer and Deputy Secretary Keith Sonderling for securing $237 million in savings during this round alone.
The cuts mark the second major cost-saving move under Chavez-DeRemer’s leadership in as many weeks. Just days earlier, she canceled an additional $33 million in funding, including a $1.5 million grant focused on increasing transparency in Uzbekistan’s cotton sector. Chavez-DeRemer, a former Republican congresswoman from Oregon, was confirmed as Labor Secretary on March 11th by a bipartisan Senate vote of 67-32.
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