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Trudeau’s Liberal Gov’t Tears Itself Apart As It Scrambles To Address Trump’s Tariff Threats

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From the Daily Caller News Foundation

By Jason Hopkins

A top official within Canadian Prime Minister Justin Trudeau’s cabinet abruptly resigned, citing growing policy disagreements on how the country should respond to tariff threats posed by President-elect Donald Trump and his “America First” economic agenda.

Finance Minister Chrystia Freeland officially resigned from Trudeau’s cabinet on Monday,  according to a letter she posted publicly and delivered to the prime minister. Freeland’s letter — which came just hours before she was supposed to deliver an address on border security with the U.S. — marks the latest turmoil to beset Trudeau’s government as he deals with a more adversarial partner in the incoming Trump administration and his Liberal Party remains beleaguered with poor poll numbers.

“On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the cabinet,” Freeland wrote to Trudeau. “Upon reflection, I have concluded that the only honest and viable path is for me to resign from the cabinet.”

The finance minister said the two had found themselves “at odds” in the past few weeks over how to find the best path forward for the country. However, she appeared to take particular umbrage with how to approach the “aggressive economic nationalism” presented by President-elect Donald Trump, who has threatened Canada and Mexico with sweeping tariffs unless both countries do more to stop the flow of illegal immigration and illicit drugs.

The U.S.-Canada border, while never experiencing the level of activity seen annually at the southern border, has witnessed an uptick in activity in recent time. There were more than 23,000 encounters by made Border Patrol agents in fiscal year 2024, more than doubling the 10,000 encounters experienced the previous fiscal year, according to Customs and Border Protection data.

“Our country today faces a grave challenge,” Freeland wrote. “The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25 per cent tariffs.”

“We need to take that threat extremely seriously,” she continued. “That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war.”

Trump, fresh off his electoral landslide victory over Vice President Kamala Harris earlier in November, declared on social media that he would be imposing 25% tariffs on Mexico and Canada unless their governments met his demands on illegal immigration and other issues. The threat has since set off a series of reactions from both Canadian and Mexican governments.

Mexican President Claudia Sheinbaum issued a public letter that gave her government credit for the drop in migrant encounters along the southern border and blamed the U.S. for the number of guns in Mexico. Sheinbaum also notably warned that the Mexican government would have a “response in kind” if Trump moves forward with his threat to slap a 25% tariff on all of her country’s goods.

In what has been a more diplomatic approach so far, Trudeau reached out to Trump to discuss the situation, and later said he “had a good call” with the president-elect. The Liberal Party leader soon afterward visited Trump at his Mar-a-Largo residence and detailed what more the Canadian government is doing to bolster border security.

The Mexican government has already been dealing with the fallout of the tariff threats, with a slate of major international businesses suggesting that they would cease investments in the country until more clarity is given on the situation. Freeland’s resignation appears to show that the tariff threats are also wreaking havoc north of the border, with top officials disagreeing on how to respond.

“That means pushing back against ‘America First’ economic nationalism with a determined effort to fight for capital and investment and the jobs they bring,” Freeland said, speaking on how Canada should deal with Washington, D.C. “That means working in good faith and humility with the Premiers of the provinces and territories of our great and diverse country, and building a true Team Canada response.”

Trudeau, who has served as prime minister of Canada since November 2015, may not be the country’s leader following elections next year. Recent surveys indicate his Liberal Party will face a beating at the voting booth in October 2025 against the Conservative Party, led by Member of Parliament Pierre Poilievre. The Conservative Party leader is also viewed by Canadians as better equipped to work with Trump, according to a new Ipsos poll.

In response to the threat of tariffs from the incoming Trump administration, Poilievre has called for the Canadian government to beef up border security and tighten visa rules on legal immigration.

“What we are seeing is the government of Canada itself is spiraling out of control, right before our eyes and at the very worst time,” Poilievre said during a press conference Monday in reaction to the news, in which he detailed the country’s dire economic situation and political instability of the Trudeau government. “Out of control immigration has led to refugee camps opening in suburban Canada and then we have 500,000 in the country illegally, according to government estimates.”

“We cannot accept this kind of chaos, division, weakness while we’re staring down the barrel of 25% tariff from our biggest trading partner and closest ally, which by the way is headed by a newly elected president with a strong and fresh mandate, a man who can spot weakness from a mile away,” he continued.

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Trump Reportedly Shuts Off Flow Of Taxpayer Dollars Into World Trade Organization

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From the Daily Caller News Foundation

By Thomas English

The Trump administration has reportedly suspended financial contributions to the World Trade Organization (WTO) as of Thursday.

The decision comes as part of a broader shift by President Donald Trump to distance the U.S. from international institutions perceived to undermine American sovereignty or misallocate taxpayer dollars. U.S. funding for both 2024 and 2025 has been halted, amounting to roughly 11% of the WTO’s annual operating budget, with the organization’s total 2024 budget amounting to roughly $232 million, according to Reuters.

“Why is it that China, for decades, and with a population much bigger than ours, is paying a tiny fraction of [dollars] to The World Health Organization, The United Nations and, worst of all, The World Trade Organization, where they are considered a so-called ‘developing country’ and are therefore given massive advantages over The United States, and everyone else?” Trump wrote in May 2020.

The president has long criticized the WTO for what he sees as judicial overreach and systemic bias against the U.S. in trade disputes. Trump previously paralyzed the organization’s top appeals body in 2019 by blocking judicial appointments, rendering the WTO’s core dispute resolution mechanism largely inoperative.

But a major sticking point continues to be China’s continued classification as a “developing country” at the WTO — a designation that entitles Beijing to a host of special trade and financial privileges. Despite being the world’s second-largest economy, China receives extended compliance timelines, reduced dues and billions in World Bank loans usually reserved for poorer nations.

The Wilson Center, an international affairs-oriented think tank, previously slammed the status as an outdated loophole benefitting an economic superpower at the expense of developed democracies. The Trump administration echoed this criticism behind closed doors during WTO budget meetings in early March, according to Reuters.

The U.S. is reportedly not withdrawing from the WTO outright, but the funding freeze is likely to trigger diplomatic and economic groaning. WTO rules allow for punitive measures against non-paying member states, though the body’s weakened legal apparatus may limit enforcement capacity.

Trump has already withdrawn from the World Health Organization, slashed funds to the United Nations and signaled a potential exit from other global bodies he deems “unfair” to U.S. interests.

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Cover up of a Department of Energy Study Might Be The Biggest Stain On Biden Admin’s Legacy

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From the Daily Caller News Foundation

By David Blackmon

News broke last week that the Biden Department of Energy (DOE), led by former Secretary Jennifer Granholm, was so dedicated to the Biden White House’s efforts to damage the dynamic U.S. LNG export industry that it resorted to covering up a 2023 DOE study which found that growth in exports provide net benefits to the environment and economy.

“The Energy Department has learned that former Secretary Granholm and the Biden White House intentionally buried a lot of data and released a skewed study to discredit the benefits of American LNG,” one DOE source told Nick Pope of the Daily Caller News Foundation.. “[T]he administration intentionally deceived the American public to advance an agenda that harmed American energy security, the environment and American lives.”

And “deceived” is the best word to describe what happened here. When the White House issued an order signed by the administration’s very busy autopen to invoke what was supposed to be a temporary “pause” in permitting of LNG infrastructure, it was done at the behest of far-left climate czar John Podesta, with Granholm’s full buy-in. As I’ve cataloged here in past stories, this cynical “pause” was based on the flimsiest possible rationale, and the “science” supposedly underlying it was easily debunked and fell completely apart over time.

But the ploy moved ahead anyway, with Granholm and her DOE staff ordered to conduct their own study related to the advisability of allowing further growth of the domestic LNG industry. We know now that study already existed but hadn’t reached the hoped-for conclusions.

The two unfounded fears at hand were concerns that rising exports of U.S. LNG would a) cause domestic prices to rise for consumers, and b) would result in higher emissions than alternative energy sources. As the Wall Street Journal notes, a draft of that 2023 study “shows that increased U.S. LNG exports would have negligible effects on domestic prices while modestly reducing global greenhouse gas emissions. The latter is largely because U.S. LNG exports would displace coal in power production and gas exports from other countries such as Russia.”

An energy secretary and climate advisor interested in seeking truth based on science would have made that 2023 study public, and the “pause” would have been a short-lived, temporary thing. Instead, the Biden officials decided to try to bury this inconvenient truth, causing the “pause” to endure right through the final day of the Biden regime with a clear intention of turning it into permanent policy had Kamala Harris and her “summer of joy” campaign managed to prevail on Nov. 5.

Fortunately for the country, voters chose more wisely, and President Trump included ending this deceitful “pause” exercise as part of his Day One agenda. No autopen was involved.

So, the thing is resolved in favor of truth and common sense now, but it is important to understand exactly what was at stake here, exactly how important an industry these Biden officials were trying to freeze in place.

In an interview on Fox News Monday, current Energy Secretary Chris Wright did just that, pointing out that, fifteen years ago, America was “the largest importer of natural gas in the world. Today, we’re the largest exporter.”

He went onto add that, “the Biden administration put a pause on LNG exports 14 months ago, January of 2024, sending a message to the world that maybe the US isn’t going to continue to grow our exports. Think of the extra leverage that gives Russia, the extra fear that gives the Europeans or the Asians that are dying for more American energy.”

Then, Wright supplied the kicker: “They did this in spite of their own study that showed increasing LNG exports would reduce greenhouse gas emissions and have a negligible impact on price.” It was an effort, Wright concludes, to kill what he says is “America’s greatest energy advantage.”

This incident is a stain on the Biden administration and its senior leaders. The stain becomes more indelible when we remember that, when asked by Speaker Mike Johnson why he had signed that order, Joe Biden himself had no memory of doing so, telling Johnson, “I didn’t do that.”

Sadly, we know now there’s a good chance Mr. Biden was telling the speaker the truth. But someone did it, and it’s a travesty.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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