Opinion
Feds facing the consequences of the costly carbon tax

From the Canadian Taxpayers Federation
Author: Gage Haubrich
Ottawa unveiled an unorthodox carbon tax communications strategy in Saskatchewan: threats.
Saskatchewan minister responsible for SaskEnergy, Dustin Duncan, recently announced that the Saskatchewan government will not be sending the federal government money to cover its refusal to charge Saskatchewanians the carbon tax on home heating.
In October, Saskatchewan announced that it would stop collecting the federal carbon tax on home heating in the province. The provincial government estimates this will save the average family who uses natural gas to heat their home $400 this year. That’s enough to pay for a couple trips to the grocery store, and with the current prices at the store, families need all the relief they can get.
In response, federal Minister of Energy and Natural Resources Jonathan Wilkinson shot back at Saskatchewan, announcing that because of this decision, Saskatchewanians will no longer be receiving the federal government’s carbon tax rebate.
Premier Scott Moe then pointed out the absurdity of the feds by highlighting that Saskatchewanians are still paying the carbon tax on gas, diesel and propane.
This whole mess started because Prime Minister Justin Trudeau backpedalled on his carbon tax and decided take it off heating oil. It’s a fuel primarily used in Atlantic Canada and used by almost zero Saskatchewanians.
Despite the exemption in Atlantic Canada being very similar to Premier Scott Moe’s plan in Saskatchewan, Atlantic Canadians are still on track to receive carbon tax rebates. And Quebec, which pays a lower carbon tax than the rest of the country, hasn’t faced the wrath of the federal government either.
Ottawa instead decided to pick a fight with Saskatchewan. It’s fight that won’t win them any favours in the province. At this point, it’s a good bet the Winnipeg Blue Bombers are more popular in Saskatchewan than the Liberals.
But not do outdo even himself, Wilkinson also added, “The rebate actually provides more money for most families in Saskatchewan.”
If only that were true.
Currently, the carbon tax costs 14 cents per litre of gasoline and will cost the average Saskatchewan family $410 this year, according to the Parliamentary Budget Officer.
Oh, and that’s including the rebates that Wilkinson is currently threatening to withhold.
Along with the carbon tax, Ottawa also charges a 10 cents per litre federal tax gas tax and then GST on top of the whole price of the gas, including the carbon tax. That means you are paying about two cents per litre in tax-on-tax in GST every time you fill up your vehicle.
And it’s going to get worse because the federal government plans to keep hiking up the carbon tax.
Come April 1, the carbon tax cost jumps to 17 cents per litre. By 2030, it will be 37 cents per litre and cost the average Saskatchewan household $1,723 per year.
And since almost everything we buy is delivered by a truck and then stored inside a store, the costs to transport and sell those items also goes up with the carbon tax.
After the announcement of the carbon tax heating oil exemption, five premiers, including Moe, wrote to Trudeau demanding that he take the carbon tax off all forms of home heating. It’s good to see premiers across the country take a stand, but Moe is the only one taking real action.
Instead of resorting to threats, maybe Ottawa should take the hint and scrap the carbon tax.
2025 Federal Election
The Cost of Underselling Canadian Oil and Gas to the USA

From the Frontier Centre for Public Policy
Canadians can now track in real time how much revenue the country is forfeiting to the United States by selling its oil at discounted prices, thanks to a new online tracker from the Frontier Centre for Public Policy. The tracker shows the billions in revenue lost due to limited access to distribution for Canadian oil.
At a time of economic troubles and commercial tensions with the United States, selling our oil at a discount to U.S. middlemen who then sell it in the open markets at full price will rob Canada of nearly $19 billion this year, said Marco Navarro-Genie, the VP of Research at the Frontier Centre for Public Policy.
Navarro-Genie led the team that designed the counter.
The gap between world market prices and what Canada receives is due to the lack of Canadian infrastructure.
According to a recent analysis by Ian Madsen, senior policy analyst at the Frontier Centre, the lack of international export options forces Canadian producers to accept prices far below the world average. Each day this continues, the country loses hundreds of millions in potential revenue. This is a problem with a straightforward remedy, said David Leis, the Centre’s President. More pipelines need to be approved and built.
While the Trans Mountain Expansion (TMX) pipeline has helped, more is needed. It commenced commercial operations on May 1, 2024, nearly tripling Canada’s oil export capacity westward from 300,000 to 890,000 barrels daily. This expansion gives Canadian oil producers access to broader global markets, including Asia and the U.S. West Coast, potentially reducing the price discount on Canadian crude.
This is more than an oil story. While our oil price differential has long been recognized, there’s growing urgency around our natural gas exports. The global demand for cleaner energy, including Canadian natural gas, is climbing. Canada exports an average of 12.3 million GJ of gas daily. Yet, we can still not get the full value due to infrastructure bottlenecks, with losses of over $7.3 billion (2024). A dedicated counter reflecting these mounting gas losses underscores how critical this issue is.
“The losses are not theoretical numbers,” said Madsen. “This is real money, and Canadians can now see it slipping away, second by second.”
The Frontier Centre urges policymakers and industry leaders to recognize the economic urgency and ensure that infrastructure projects like TMX are fully supported and efficiently utilized to maximize Canada’s oil export potential. The webpage hosting the counter offers several examples of what the lost revenue could buy for Canadians. A similar counter for gas revenue lost through similarly discounted gas exports will be added in the coming days.
What Could Canada Do With $25.6 Billion a Year?
Without greater pipeline capacity, Canada loses an estimated (2025) $25.6 billion by selling our oil and gas to the U.S. at a steep discount. That money could be used in our communities — funding national defence, hiring nurses, supporting seniors, building schools, and improving infrastructure. Here’s what we’re giving up by underselling these natural resources.

342,000 Nurses
The average annual salary for a registered nurse in Canada is about $74,958. These funds could address staffing shortages and improve patient care nationwide.
Source

39,000 New Housing Units
At an estimated $472,000 per unit (excluding land costs, based on Toronto averages), $25.6 billion could fund nearly 94,000 affordable housing units.
Source
About the Frontier Centre for Public Policy
The Frontier Centre for Public Policy is an independent Canadian think-tank that researches and analyzes public policy issues, including energy, economics and governance.
Automotive
Hyundai moves SUV production to U.S.

MxM News
Quick Hit:
Hyundai is responding swiftly to 47th President Donald Trump’s newly implemented auto tariffs by shifting key vehicle production from Mexico to the U.S. The automaker, heavily reliant on the American market, has formed a specialized task force and committed billions to American manufacturing, highlighting how Trump’s America First economic policies are already impacting global business decisions.
Key Details:
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Hyundai has created a tariffs task force and is relocating Tucson SUV production from Mexico to Alabama.
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Despite a 25% tariff on car imports that began April 3, Hyundai reported a 2% gain in Q1 operating profit and maintained earnings guidance.
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Hyundai and Kia derive one-third of their global sales from the U.S., where two-thirds of their vehicles are imported.
Diving Deeper:
In a direct response to President Trump’s decisive new tariffs on imported automobiles, Hyundai announced Thursday it has mobilized a specialized task force to mitigate the financial impact of the new trade policy and confirmed production shifts of one of its top-selling models to the United States. The move underscores the gravity of the new 25% import tax and the economic leverage wielded by a White House that is now unambiguously prioritizing American industry.
Starting with its popular Tucson SUV, Hyundai is transitioning some manufacturing from Mexico to its Alabama facility. Additional consideration is being given to relocating production away from Seoul for other U.S.-bound vehicles, signaling that the company is bracing for the long-term implications of Trump’s tariffs.
This move comes as the 25% import tax on vehicles went into effect April 3, with a matching tariff on auto parts scheduled to hit May 3. Hyundai, which generates a full third of its global revenue from American consumers, knows it can’t afford to delay action. Notably, U.S. retail sales for Hyundai jumped 11% last quarter, as car buyers rushed to purchase vehicles before prices inevitably climb due to the tariff.
Despite the trade policy, Hyundai reported a 2% uptick in first-quarter operating profit and reaffirmed its earnings projections, indicating confidence in its ability to adapt. Yet the company isn’t taking chances. Ahead of the tariffs, Hyundai stockpiled over three months of inventory in U.S. markets, hoping to blunt the initial shock of the increased import costs.
In a significant show of good faith and commitment to U.S. manufacturing, Hyundai last month pledged a massive $21 billion investment into its new Georgia plant. That announcement was made during a visit to the White House, just days before President Trump unveiled the auto tariff policy — a strategic alignment with a pro-growth, pro-America agenda.
Still, the challenges are substantial. The global auto industry depends on complex, multi-country supply chains, and analysts warn that tariffs will force production costs higher. Hyundai is holding the line on pricing for now, promising to keep current model prices stable through June 2. After that, however, price adjustments are on the table, potentially passing the burden to consumers.
South Korea, which remains one of the largest exporters of automobiles to the U.S., is not standing idle. A South Korean delegation is scheduled to meet with U.S. trade officials in Washington Thursday, marking the start of negotiations that could redefine the two nations’ trade dynamics.
President Trump’s actions represent a sharp pivot from the era of global corporatism that defined trade under the Obama-Biden administration. Hyundai’s swift response proves that when the U.S. government puts its market power to work, foreign companies will move mountains — or at least entire assembly lines — to stay in the game.
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