Business
Bank of Canada admits eliminating carbon tax could reduce inflation by 16%
From LifeSiteNews
Bank of Canada Governor Tiff Macklem testified that cutting the tax would create a one-time reduction of inflation by 0.6%, which is 16% of Canada’s total inflation rate
Bank of Canada Governor Tiff Macklem admitted that Trudeau’s carbon tax is responsible for 16% of Canada’s current inflation rate.
On October 30, Macklem told the House of Commons finance committee that eliminating the carbon tax would reduce inflation by 0.6%, which is 16% of Canada’s total inflation rate.
“That would create a one-time drop in inflation of 0.6 percentage points,” Macklem told Conservative MP Philip Lawrence, who had questioned the tax’s effect on the economy.
Currently, Canada’s inflation rate is at 3.8% which means that a decrease of 0.6% by eliminating the tax would result in a 16% decrease in the overall inflation.
Lawrence further questioned if eliminating the tax would ease the economic situation, considering it would mean a “sizable drop in inflation.” However, Macklem explained that cutting the tax would only affect inflation for one year.
“It would be helpful if monetary and fiscal policy was rowing in the same direction,” he added, explaining that government spending has made keeping interest rates steady a difficult task.
“Any standard economic textbook will tell you if you cut government spending that will tend to slow growth, raise the unemployment rate, and reduce inflation,” Macklem explained.
In September, Macklem admitted that food costs are of particular concern as “[m]eat’s up six percent, bread’s up 13 percent, coffee’s up eight percent, baby food’s up nine percent. If you look at food overall it is up nine percent.”
Macklem revealed at the time that food prices are rising significantly faster than the headline inflation rate – the overall inflation rate in the country – as staple food items are increasing at a rate of 10 percent to 18 percent year-over-year.
To combat this inflation, the Bank of Canada has raised interest rates to 5 percent, the highest benchmark rate in 22 years. Another increase is expected in October.
In addition to deficit spending, others have pointed to the Trudeau government’s ongoing carbon taxes and energy regulations as one of the reasons for the sharp increases in the cost of living.
According to a March report, Trudeau’s carbon tax is costing Canadians hundreds of dollars annually as government rebates remain insufficient to compensate for the increased fuel prices.
Last week, Prime Minster Justin Trudeau suspended his carbon tax on home heating oil, amid rising costs of living and his decreasing popularity across multiple polls.
Under the new regulations, home heating oil is exempted from the carbon tax, while rural residents will receive a 10 percent increase in the carbon tax rebate payments. The increase is set to climb to 20 percent beginning next year.
In March, the Parliamentary Budget Officer calculated the total carbon tax costs for fuel in 2023 minus government rebates. The steepest increase is for Albertans, who will pay an average of $710 extra per household. Following Alberta is Ontario with a $478 increase.
Prince Edward Island households will pay an extra $465, Nova Scotia $431, Saskatchewan $410, Manitoba $386, and Newfoundland and Labrador $347.
The increased costs are only expected to rise as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.
Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.
Business
Canada has given $109 million to Communist China for ‘sustainable development’ since 2015
From LifeSiteNews
A briefing note showed Canadian aid has gone to ‘key foreign policy priorities in China, including human rights, gender equality, sustainable development, and climate change.’
A federal briefing note disclosed that well over $100 million has been provided to the Communist Chinese government in so-called “foreign aid” to promote “sustainable development” that includes woke ideology such as gender equality.
As reported by Blacklock’s Reporter, a recent briefing note titled Assistance to China from May for the Minister of International Development showed $109 million has gone to “key foreign policy priorities in China, including human rights, gender equality, sustainable development, and climate change” since 2015 and $645 million since 2003.
The briefing note asked directly if funding was “going to the Government of China.”
In reply, the briefing note stated, “Canada has not provided direct bilateral assistance to Chinese state authorities since 2013, though it continues to provide small amounts of funding to international partners and non-state partners on the ground.”
Former Prime Minister Justin Trudeau came to power in 2015 and increased relations with the Communist Chinese regime. This trend under the Liberal Party government has continued with Prime Minister Mark Carney.
During a 2025 federal election campaign debate, Conservative Party leader Pierre Poilievre called out Carney for his ties to Communist China.
Conservative MP Andrew Scheer has consistently called out any money at all going to China, saying, “I don’t believe Canadian taxpayers should be sending any money to China.”
“We’re talking about a Communist dictatorial government that abuses human rights, quashes freedoms, violates rights of its citizens, and has a very aggressive foreign policy throughout the region,” he noted.
Scheer added that he has been calling on the Carney Liberals to “stand up for themselves, stand up for Canadians, stop being bullied and pushed around on the world stage, especially by China.”
Most of the money in foreign aid was spent through globalist-backed agencies such as the World Bank and the United Nations Development Program. Some 39 percent of the money was said to have gone straight to Chinese recipients, but no projects were itemized.
Other countries have received millions of dollars in foreign aid, with $2.1 billion going to Ukraine, $195 million to Ethiopia, $172 million to Haiti, and $151 million to the West Bank and Gaza last year.
Foreign aid to all nations totaled $12.3 billion.
LifeSiteNews recently reported that the Canadian Liberal government gave millions in aid to Chinese universities.
China has been accused of direct election meddling in Canada, as reported by LifeSiteNews.
LifeSiteNews also reported that a new exposé by investigative journalist Sam Cooper has claimed there is compelling evidence that Carney and Trudeau are/were strongly influenced by an “elite network” of foreign actors, including those with ties to China and the World Economic Forum.
Business
Canada’s combative trade tactics are backfiring
This article supplied by Troy Media.
Defiant messaging may play well at home, but abroad it fuels mistrust, higher tariffs and a steady erosion of Canada’s agri-food exports
The real threat to Canadian exporters isn’t U.S. President Donald Trump’s tariffs, it’s Ottawa and Queen’s Park’s reckless diplomacy.
The latest tariff hike, whether triggered by Ontario’s anti-tariff ad campaign or not, is only a symptom. The deeper problem is Canada’s escalating loss of credibility at the trade table. Washington’s move to raise duties from 35 per cent to 45 per cent on nonCUSMA imports (goods not covered under the Canada-United States-Mexico Agreement, the successor to NAFTA) reflects a diplomatic climate that is quickly souring, with very real consequences for Canadian exporters.
Some analysts argue that a 10-point tariff increase is inconsequential. It is not. The issue isn’t just what is being tariffed; it is the tone of the relationship. Canada is increasingly seen as erratic and reactive, negotiating from emotion rather than strategy. That kind of reputation is dangerous when dealing with the U.S., which remains Canada’s most important trade partner by a wide margin.
Ontario Premier Doug Ford’s stand up to America messaging, complete with a nostalgic Ronald Reagan cameo, may have been rooted in genuine conviction. Many Canadians share his instinct to defend the country’s interests with bold language. But in diplomacy, tone often outweighs intent. What plays well domestically can sound defiant abroad, and the consequences are already being felt in boardrooms and warehouses across the country.
Ford’s public criticisms of companies such as Crown Royal, accused of abandoning Ontario, and Stellantis, which recently announced it will shift production of its Jeep Compass from Brampton to Illinois as part of a US$13 billion U.S. investment, may appeal to voters who like to see politicians get tough. But those theatrics reinforce the impression that Canada is hostile to
international investors. At a time when global capital can move freely, that perception is damaging. Collaboration, not confrontation, is what’s needed most to secure investment in Canada’s economy.
Such rhetoric fuels uncertainty on both sides of the border. The results are clear: higher tariffs, weaker investor confidence and American partners quietly pivoting away from Canadian suppliers.
Many Canadian food exporters are already losing U.S. accounts, not because of trade rules but because of eroding trust. Executives in the agri-food sector are beginning to wonder whether Canada can still be counted on as a reliable partner, and some have already shifted contracts southward.
Ford’s political campaigns may win applause locally, but Washington’s retaliatory measures do not distinguish between provinces. They hit all exporters, including Canada’s food manufacturers that rely heavily on the U.S. market, which purchases more than half of Canada’s agri-food exports. That means farmers, processors and transportation companies across the country are caught in the crossfire.
Those who believe the new 45 per cent rate will have little effect are mistaken. Some Canadian importers now face steeper duties than competitors in Vietnam, Laos or even Myanmar. And while tariffs matter, perception matters more. Right now, the optics for Canada’s agri-food sector are poor, and once confidence is lost, it is difficult to regain.
While many Canadians dismiss Trump as unpredictable, the deeper question is what happened to Canada’s once-cohesive Team Canada approach to trade. The agri-food industry depends on stability and predictability. Alienating our largest customer, representing 34 per cent of the global consumer market and millions of Canadian jobs tied to trade, is not just short-sighted, it’s economically reckless.
There is no trade war. What we are witnessing is an American recalibration of domestic fiscal policy with global consequences. Canada must adapt with prudence, not posturing.
The lesson is simple: reckless rhetoric is costing Canada far more than tariffs. It’s time to change course, especially at Queen’s Park.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country
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