MxM News

Quick Hit:

Canada has suspended nearly all of its retaliatory tariffs on U.S. products, easing inflation concerns and improving its economic outlook, according to Oxford Economics. Prime Minister Mark Carney’s new approach is aimed at protecting Canadian growth while avoiding a prolonged trade war.

Key Details:

• Canada’s effective tariff rate on U.S. goods is now “nearly zero” after broad exemptions were announced.
• Retaliatory duties remain on select U.S. products like orange juice, alcohol, coffee, clothing, and cosmetics.
• Oxford Economics upgraded Canada’s 2025 growth forecast to 0.9% despite predicting a mild recession.

Diving Deeper:

Canada’s government, under Prime Minister Mark Carney, has rolled back most of its retaliatory tariffs on U.S. goods, according to a new report from Oxford Economics. The decision comes after months of escalating trade tensions that began with the Trump administration’s tariffs earlier this year. In response, Canada initially slapped 25% import taxes on approximately C$60 billion ($43 billion) worth of U.S. goods and imposed additional levies on American automobiles.

However, Carney’s administration has since introduced a strategic six-month exemption for a wide range of U.S. products crucial to Canadian industries. Items used in manufacturing, processing, food and beverage packaging, health care, public safety, and national security are now largely exempt. Automakers, including major employers like General Motors Co., are also benefiting, as some U.S.-made vehicles can now enter Canada tariff-free.

Oxford Economics noted that with these exemptions, the real tariff-rate hike against U.S. goods is “nearly zero,” a move it called a “very strategic approach” to avoid harming Canada’s domestic economy. Tony Stillo, Oxford’s director of Canada economics, praised Carney’s leadership for prioritizing economic stability over political retaliation.

Still, not all U.S. goods escaped the tariffs. Products like orange juice, alcohol, coffee, clothing, and cosmetics remain subject to higher import taxes.

Carney, who recently won election by promising to manage the U.S.-Canada trade relationship effectively, has emphasized the need to strengthen Canada’s domestic economy. His government is planning increased spending on infrastructure and housing while pursuing new trade and security partnerships outside of the U.S. Unlike his predecessor, Justin Trudeau, Carney has rejected a strict “dollar for dollar” retaliation policy.

Despite these moves, Oxford Economics still forecasts a mild recession for Canada this year. However, it raised its growth expectations, projecting 0.9% growth in 2025 and 0.3% in 2026. Inflation is expected to briefly spike to 3% in 2026 before stabilizing.

National Citizens Coalition Slams Carney Government’s Disastrous Start

The National Citizens Coalition (NCC) is sounding the alarm on Prime Minister Mark Carney’s Liberal government, which has stumbled out of the gate with a series of missteps that threaten Canada’s prosperity and unity. From housing, to justice, to energy policy, the Carney cabinet’s early remarks signal a continuation of failed Trudeau-era policies, compounded by a refusal to provide fiscal transparency. We urge Canadians to voice their outrage and to hold these failing status-quo profiteers to account — before it’s too late.

Gregor Robertson’s Immediate Housing Fumble: A Crisis Ignored

One of the early architects of Canada’s generational housing crises, controversial former Vancouver Mayor Gregor Robertson has already dashed hopes for meaningful reform. During his tenure in Vancouver, which was marred by corruption and scandal, housing prices more than doubled, and municipal taxes on new homes soared by over 140%. Now, just days into his federal role, Robertson has declared that home prices don’t need to come down, dismissing the struggles of millions of Canadians priced out of the market. This tone-deaf stance, his apparent refusal to understand basic principles of supply and demand, coupled with his track record of overseeing Vancouver’s affordability crisis, suggests the Liberals have no plan to deliver on their promise to allow Canadian under-50s back into the housing market.

Canadians deserve a housing minister who understands the urgency of the crisis, and who won’t just commit to building Brookfield-backed dog-crate leaseholds. Young working Canadians are understandably worried, and this is as bad a start as feared for all those who have been denied the Canadian Dream.

Sean Fraser’s Justice Appointment: Failing Families Amid Rising Crime

The decision to appoint Sean Fraser as Minister of Justice is equally troubling. Fraser, who previously oversaw historically unsustainable immigration levels as Immigration Minister and delivered no measurable results as Housing Minister, now takes on a justice portfolio at a time when random violent attacks are leaving families shaken across Canada. Reports of stabbings, assaults, and public safety breakdowns dominate headlines, yet Fraser’s early comments suggest he may prioritize working from home over tackling the crime wave head-on. Canadians need a justice minister focused on restoring safety and locking up criminals, not one “failing upward” into a role he’s unprepared to handle. This status-quo quite literally kills.

Steven Guilbeault Executes a Unity Crisis

Steven Guilbeault, now Minister of Canadian Identity and Culture, has wasted no time inflaming tensions with Western Canada. On May 13, 2025, Guilbeault questioned the need for new pipelines, pointing to excess capacity in the Trans Mountain pipeline and predicting a global peak in oil demand. This anti-energy rhetoric, from a former environment minister known for his activist opposition to resource development, risks alienating Alberta and other resource-dependent regions. At a time when Canada needs a united front, Guilbeault’s comments threaten to deepen divisions and undermine economic growth. The NCC condemns this reckless approach, which prioritizes ideology over jobs and national unity.

Like Gregor Robertson, Guilbeault must be removed from his file at once.

Carney’s Budget Refusal: Hiding from Accountability — Just Like Justin

Perhaps most alarming is Carney’s announcement that his government will not table a federal budget in 2025, opting instead for a vague “fall economic statement.” This decision leaves Canadians in the dark about the government’s fiscal plans at a time of economic uncertainty, including U.S. tariff disruptions and rising deficits. Former parliamentary budget officer Kevin Page has warned that campaign platforms are outdated, and Parliament will be asked to approve spending without a clear framework. By dodging a budget, Carney is evading accountability and undermining trust in his government’s ability to manage Canada’s finances responsibly.

A Call to Action for Canadians

The NCC stands with the millions of Canadians who demand better, and the growing working-class coalition of common-sense conservatives. Carney’s cabinet appointments and early policy signals reveal a government out of touch with the priorities of hardworking families, energy workers, and taxpayers. We call on supporters to join us in pressing for real change: policies that make housing more affordable, that bring immigration back in line with sustainable norms, that make streets safe, and that make energy development more robust and life more affordable.

And this government will not be allowed to get away with the lack of economic transparency of the last ten years.

This has been as bad a start as it gets. More won’t just be expected of Carney. It will be demanded.

Founded in 1967, the National Citizens Coalition is a non-profit organization dedicated to advocating for smaller government, lower taxes, and greater individual freedom. We amplify the voices of Canadians who believe in accountability, prosperity, and unity.

If you share our alarm, your support is most welcome with a donation.