Business
China likely to escape scot-free in persecution of two Canadians

From the MacDonald Laurier Institute
By Charles Burton
Beijing propagandists are already using recent claims to vindicate the appalling treatment of Michael Kovrig and Michael Spavor
There is a deep sadness to reports that Michael Spavor feels he was badly wronged by his fellow former political prisoner Michael Kovrig and, by extension, political officers at Canada’s embassy in Beijing and their masters in Ottawa.
Spavor reportedly wants millions in compensation from the Canadian government for its alleged complicity in his detention in his Chinese prison ordeal. If this ends up in court, Kovrig and his superiors would have an opportunity to defend themselves against these allegations, but Beijing propagandists are already using them to vindicate the appalling treatment of Kovrig and Spavor — a gross violation of international law — by a ruthless regime that arrested them to pressure Canada into releasing Chinese Communist Party figure Meng Wanzhou from house arrest in Vancouver.
While few specifics are known about Spavor’s claims, media reports depict a connection to Kovrig’s former job at Canada’s embassy in Beijing, and later with the International Crisis Group think tank, roles in which he would allegedly meet with people in China, engage them in his fluent Mandarin, and mine the conversations for nuggets of insight into China’s political or economic affairs.
Chinese authorities, of course, don’t like such activities. One expects that Kovrig and his superiors, both in government and the ICG, would have been well aware that this type of work would irritate Beijing, thus the danger of arbitrary detention on trumped-up charges was always there whenever he visited China without the protection of a diplomatic passport. And so it was.
One particularly troubling aspect of this sort of activity is the risk it presents to people who might unknowingly be sources for these information-gathering practices. Apparently Spavor and Kovrig routinely got together for drinks and sessions of good-humoured conversation. But friendships with diplomats imply that observations shared in a bar can end up the next morning in a report to Ottawa, and on to the Five Eyes. Was this possibility lost on Spavor? Was Kovrig perhaps not as forthcoming as he could have been about the full dimensions of their chats?
And there is always the possibility that China’s Ministry of State Security has access to Canadian diplomatic communications, which led them to open a file on the two.
Spavor ran a business, Paektu Cultural Exchange, that facilitated sports, cultural, tourism and business exchanges with North Korea. These pricey tours necessitated the transfer of badly-needed foreign currency into North Korea, arguably helping to enable the repressive Pyongyang regime. Perhaps more intriguing, in the course of his work Spavor developed an unlikely rapport with the third-generation Kim family dictator, Kim Jong Un, and was photographed jet-skiing and drinking cocktails with him on a private yacht. It is very plausible that China strongly disapproved of their junior proxy Korean communist dictator cavorting with non-Chinese foreign friends, hence his arrest.
Troublingly, Canadians — who were transfixed and infuriated by the two Michaels’ incarceration — have had little news about Kovrig and Spavor’s China nightmare since their sudden release in September 2021, just hours after Canada released Meng. One wonders if Ottawa really did enough to incentivize China’s Communist authorities to send them home sooner, or if there were other factors in Canada’s murky relationship with Beijing that took priority over what was perhaps downplayed behind closed doors as just another consular matter, one of many that are de facto subordinated to trade and political interests.
We may never see any Global Affairs Canada officials or former diplomats giving public evidence in a Canadian court to defend against Spavor’s accusation. To be sure, much of what goes on between Canada and China — indeed, within our own government internally — is kept from us by the secretive walls of the Security of Information Act.
Perhaps Spavor will be given a big whack of taxpayer money in an out-of-court settlement laced with ironclad nondisclosure provisions. One thing is for sure though. The Chinese authorities who so brutally persecuted him will, as usual, get off scot-free.
Charles Burton is a senior fellow at the Macdonald-Laurier Institute, non-resident senior fellow of the European Values Center for Security Policy in Prague, and former diplomat at Canada’s embassy in Beijing.
Alberta
Big win for Alberta and Canada: Statement from Premier Smith

Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:
“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.
“This is precisely what I have been advocating for from the U.S. administration for months.
“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.
“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.
“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.
“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”
Business
Canada may escape the worst as Trump declares America’s economic independence with Liberation Day tariffs

MxM News
Quick Hit:
On Wednesday, President Trump declared a national emergency to implement a sweeping 10% baseline tariff on all imported goods, calling it a “Declaration of Economic Independence.” Trump said the tariffs would revitalize the domestic economy, declaring that, “April 2, 2025, will forever be remembered as the day American industry was reborn.”
Key Details:
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The baseline 10% tariff will take effect Saturday, while targeted “reciprocal” tariffs—20% on the EU, 24% on Japan, and 17% on Israel—begin April 9th. Trump also imposed 25% tariffs on most Canadian and Mexican goods, as well as on all foreign-made cars and auto parts, effective early Thursday.
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Trump justified the policy by citing foreign trade restrictions and long-standing deficits. He pointed to policies in Australia, the EU, Japan, and South Korea as examples of protectionist barriers that unfairly harm American workers and industries.
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The White House estimates the 10% tariff could generate $200 billion in revenue over the next decade. Officials say the added funds would help reduce the federal deficit while giving the U.S. stronger leverage in negotiations with countries running large trade surpluses.
Diving Deeper:
President Trump on Wednesday unveiled a broad new tariff policy affecting every imported product into the United States, marking what he described as the beginning of a new economic era. Declaring a national emergency from the White House Rose Garden, the president announced a new 10% baseline tariff on all imports, alongside steeper country-specific tariffs targeting longstanding trade imbalances.
“This is our Declaration of Economic Independence,” Trump said. “Factories will come roaring back into our country — and you see it happening already.”
The tariffs, which take effect Saturday, represent a substantial increase from the pre-Trump average U.S. tariff rate and are part of what the administration is calling “Liberation Day” for American industry. Reciprocal tariffs kick in April 9th, with the administration detailing specific rates—20% for the European Union, 24% for Japan, and 17% for Israel—based on calculations tied to bilateral trade deficits.
“From 1789 to 1913, we were a tariff-backed nation,” Trump said. “The United States was proportionately the wealthiest it has ever been.” He criticized the establishment of the income tax in 1913 and blamed the 1929 economic collapse on a departure from tariff-based policies.
To underscore the move’s long-anticipated nature, Trump noted he had been warning about unfair trade for decades. “If you look at my old speeches, where I was young and very handsome… I’d be talking about how we were being ripped off by these countries,” he quipped.
The president also used the moment to renew his push for broader economic reforms, urging Congress to eliminate federal taxes on tips, overtime pay, and Social Security benefits. He also proposed allowing Americans to write off interest on domestic auto loans.
Critics of the plan warned it could raise prices for consumers, noting inflation has already risen 22% under the Biden administration. However, Trump pointed to low inflation during his first term—when he imposed more targeted tariffs—as proof his strategy can work without sparking runaway costs.
White House officials reportedly described the new baseline rate as a guardrail against countries attempting to game the system. One official explained the methodology behind the reciprocal tariffs: “The trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating,” adding that the tariffs are “half of what they could be” because “the president is lenient and he wants to be kind to the world.”
In addition to Wednesday’s sweeping changes, Trump’s administration recently imposed a 25% tariff on Chinese goods tied to fentanyl smuggling and another 25% on steel and aluminum imports—revoking previous carve-outs for countries like Brazil and South Korea. Future tariffs on semiconductors, pharmaceuticals, and raw materials such as copper and lumber are reportedly under consideration.
Trump closed his remarks with a message to foreign leaders: “To all of the foreign presidents, prime ministers, kings, queens, ambassadors… I say, ‘Terminate your own tariffs, drop your barriers.’” He declared April 2nd “the day America’s destiny was reclaimed” and promised, “This will indeed be the golden age of America.”
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