As economic tensions rise between the U.S. and Canada, Prime Minister Mark Carney began the week with an affordability announcement in Ottawa on Monday.
Over the weekend, U.S. President Donald Trump reverted to calling Carney “governor” and threatened additional tariffs on Canada for making a trade deal with China.
Here are today’s highlights:
Carney’s response to Trump
Taking questions following his announcement, Carney was asked about his thoughts on being called “governor” by Trump.
Carney said diversifying trade partners “is a positive thing.”
He called the upcoming review of CUSMA, or the Canada-U.S.-Mexico Agreement, “robust” as Trump is a “strong negotiator,” and that “some of these comments and positionings should be viewed in the broader context of that.”
Lynn Chaya, CTVNews.ca journalist
Carney links Trump’s tariff threat to negotiations on CUSMA
Carney says it’s no coincidence U.S. President Donald Trump’s latest tariff threat against Canada comes just ahead of negotiations on renewing North America’s main free-trade pact.
Trump originally expressed support for Ottawa’s agreement with China but he changed tune after Carney’s speech. Members of the Trump administration have warned Ottawa’s recent deal with China could upend negotiations on the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, which are set to take place this year.
The prime minister has maintained his new agreement with Beijing to sort out long-standing trade tensions over electric vehicles and agricultural products is consistent with CUSMA.
The trade agreement’s future is much less certain now, as Canada, Mexico and the United States prepare for the mandatory review. Earlier this month, Trump said the trade deal was “irrelevant” to him.
The Canadian Press
‘My comments in Davos laid out how we see the world’: PM Carney Prime Minister Mark Carney addresses his speech in Davos, Arctic security and NATO.
Affordability announcement in Ottawa
With Parliament resuming after the winter break, Prime Minister Mark Carney has unveiled a boost to the GST credit as part of a suite of new affordability measures.
Carney made the announcement in Ottawa on Monday, launching what’s called the “Canada Groceries and Essentials Benefit.”
The quarterly GST payments will see an increase of 25 per cent over the next five years and will also include a one-time top-up of 50 per cent this June.
According to the federal government, a family of four will receive up to $1,890 this year with the increases, compared to $1,100 a year as the credit exists now. A single person, meanwhile, would receive $950 this year compared to $540.
Stephanie Ha, Ottawa News Bureau supervising producer
Le premier ministre Mark Carney a tenu lundi un point de presse dans une épicerie d’Ottawa. LA PRESSE CANADIENNE/Adrian Wyld Le premier ministre Mark Carney a tenu lundi un point de presse dans une épicerie d’Ottawa. LA PRESSE CANADIENNE/Adrian Wyld (Adrian Wyld) China says Canada deal not aimed at U.S.
China said on Monday that a preliminary trade deal with Canada “does not target any third parties” after the United States threatened to impose 100-per cent tariffs on Canadian products if the agreement were finalized.
Under the deal, announced this month, Beijing is expected to reduce tariffs on Canadian canola imports and grant Canadians visa-free travel to China.
But over the weekend, the United States — Canada’s traditional ally — threatened to impose 100-per cent tariffs on Canadian products if the deal were to go ahead, saying it would allow China to “dump goods”.
China’s foreign ministry spokesman Guo Jiakun said on Monday that the trade deal was not aimed at Washington.
“China and Canada have established a new type of strategic partnership… it does not target any third party,” China’s foreign ministry spokesman Guo Jiakun told a regular press conference.
“China advocates that nations should approach state-to-state relations with a win-win rather than zero-sum mindset, and through cooperation rather than confrontation,” he added.
AFP
U.S. stocks open modestly higher, gold tops US$5,000
Stocks are opening higher on Wall Street. The S&P 500 rose 0.4 per cent in early trading Monday. The index is coming off its second weekly loss in a row. The Dow Jones Industrial Average added 192 points, and the Nasdaq composite rose 0.3 per cent.
The price of gold rose two per cent to top US$5,000 an ounce for the first time. Several big U.S. companies report their latest results this week, including United Airlines, Boeing, and Apple.
The U.S. Federal Reserve is widely expected to hold interest rates steady when it meets this week. European indexes ticked higher. Japan’s Nikkei 225 dropped 1.8 per cent.
The Associated Press
Trump says China is ‘taking over’ Canada
U.S. President Donald Trump doubled down on his recent jabs at Canada by saying “Canada is systematically destroying itself” and calling “the China deal” a “disaster.”
“Will go down as one of the worst deals, of any kind, in history,” Trump wrote on Truth Social Sunday afternoon. “All their businesses are moving to the USA. I wanted to see Canada SURVIVE AND THRIVE!”
In a following post, Trump added that China is “successfully and completely taking over the once Great Country of Canada,” and that he was “so sad” to see it happen.
“I only hope they leave Ice Hockey alone!” he wrote.
U.S. Transportation Secretary Sean Duffy responded to Trump’s post, agreeing with the president and adding that Canada would “live to regret the day they let the Chinese Communist Party flood North America with their EVs.”
Aarjavee Raaj and Luca Caruso-Moro, CTVNews.ca journalists