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The carbon tax and energy affordability should be centre-stage in the next federal election

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All sorts of carbon tax advocates – environmentalists, academics, political insiders – are saying the following: all those annoying little Canadians who are so vulgar and uneducated as to object to carbon taxes should shut up once and for all.

Their assertion is: the Supreme Court has decided that the federal government can tell the provinces what to do, so the subject is settled.

But no, that is not quite true. What is true, is that IF a federal government wants to impose a carbon tax, it can.

The SCC majority decision is written by a most Trudeau-esque Chief Justice Wagner. In the decision the Chief Justice writes – in a dramatic overreach beyond law to the realm of policy – that climate change is “an existential threat to human life in Canada and around the world”. He then uses that as the basis for his affirmation of the federal government’s use of the Peace, Order and Good Government clause in the constitution.

Fine. We should all be troubled that the SCC has done this, but so be it. For my part, I thoroughly disagree with this decision, as I wrote in my previous blog post.

But the effect of the decision is not to bury the carbon tax issue, notwithstanding the arrogance and the climate alarmism of 6 of the 9 Supreme Court Justices.

What the SCC actually did is kick the carbon tax issue right back onto the front page of national politics.

What?

Yes, thanks to the SCC decision, we are all now once again talking about the carbon tax.

The fact that the Trudeau government has been told it can impose a carbon tax, does not mean that any successor federal government must impose a carbon tax.

Canadians do believe in climate change. I do.

And all of us are told constantly by many – from the likes of Greta Thunberg, and Justin Trudeau (and now) the Chief Justice of the SCC – that climate change is an existential threat. And now we are told that it must be addressed by carbon taxes.

Well …  no, actually.

That isn’t a logical sequencing of things. A belief in climate change doesn’t require a belief in it being an existential threat nor does it require an embrace of carbon taxes.

Making that point is hard, in the midst of all the noise.

But politicians with the courage to stand up for Canadians can make this point.

Politicians who care about the issue of affordable energy can, and should, make the case against carbon taxes.

The anti-carbon tax fight requires a pushback against the establishment interests who have a platform in mainstream media and elsewhere. It requires a pushback against the slew of policy wonks who like to say “carbon taxes just make so much sense.” And it requires a pushback against the many people who insult everyday Canadians who are sick and tired of watching their taxes go up.

If politicians of conviction have the courage to mount such a pushback, if they are prepared to listen to Canadians instead of trying to shut them down, they have a shot to articulate an alternative vision that is in the interests of Canadians’ long-term economic well-being.

In an upcoming blog, I will offer some suggestions for that alternative vision.

Click here for more articles from Dan McTeague of Canadians for Affordable energy

Dan McTeague | President, Canadians for Affordable Energy

 

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions.

Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

 

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions. Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

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Most Canadians say retaliatory tariffs on American goods contribute to raising the price of essential goods at home

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  • 77 per cent say Canada’s tariffs on U.S. products increase the price of consumer goods
  • 72 per cent say that their current tax bill hurts their standard of living

A new MEI-Ipsos poll published this morning reveals a clear disconnect between Ottawa’s high-tax, high-spending approach and Canadians’ level of satisfaction.

“Canadians are not on board with Ottawa’s fiscal path,” says Samantha Dagres, communications manager at the MEI. “From housing to trade policy, Canadians feel they’re being squeezed by a government that is increasingly an impediment to their standard of living.”

More than half of Canadians (54 per cent) say Ottawa is spending too much, while only six per cent think it is spending too little.

A majority (54 per cent) also do not believe federal dollars are being effectively allocated to address Canada’s most important issues, and a similar proportion (55 per cent) are dissatisfied with the transparency and accountability in the government’s spending practices.

As for their own tax bills, Canadians are equally skeptical. Two-thirds (67 per cent) say they pay too much income tax, and about half say they do not receive good value in return.

Provincial governments fared even worse. A majority of Canadians say they receive poor value for the taxes they pay provincially. In Quebec, nearly two-thirds (64 per cent) of respondents say they are not getting their money’s worth from the provincial government.

Not coincidentally, Quebecers face the highest marginal tax rates in North America.

On the question of Canada’s response to the U.S. trade dispute, nearly eight in 10 Canadians (77 per cent) agree that Ottawa’s retaliatory tariffs on American products are driving up the cost of everyday goods.

“Canadians understand that tariffs are just another form of taxation, and that they are the ones footing the bill for any political posturing,” adds Ms. Dagres. “Ottawa should favour unilateral tariff reduction and increased trade with other nations, as opposed to retaliatory tariffs that heap more costs onto Canadian consumers and businesses.”

On the issue of housing, 74 per cent of respondents believe that taxes on new construction contribute directly to unaffordability.

All of this dissatisfaction culminates in 72 per cent of Canadians saying their overall tax burden is reducing their standard of living.

“Taxpayers are not just ATMs for government – and if they are going to pay such exorbitant taxes, you’d think the least they could expect is good service in return,” says Ms. Dagres. “Canadians are increasingly distrustful of a government that believes every problem can be solved with higher taxes.”

A sample of 1,020 Canadians 18 years of age and older was polled between June 17 and 23, 2025. The results are accurate to within ± 3.8 percentage points, 19 times out of 20.

The results of the MEI-Ipsos poll are available here.

* * *

The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

 

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Business

Trump confirms 35% tariff on Canada, warns more could come

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Quick Hit:

President Trump on Thursday confirmed a sweeping new 35% tariff on Canadian imports starting August 1, citing Canada’s failure to curb fentanyl trafficking and retaliatory trade actions.

Key Details:

  • In a letter to Canadian Prime Minister Mark Carney, Trump said the new 35% levy is in response to Canada’s “financial retaliation” and its inability to stop fentanyl from reaching the U.S.
  • Trump emphasized that Canadian businesses that relocate manufacturing to the U.S. will be exempt and promised expedited approvals for such moves.
  • The administration has already notified 23 countries of impending tariffs following the expiration of a 90-day negotiation window under Trump’s “Liberation Day” trade policy.

Diving Deeper:

President Trump escalated his tariff strategy on Thursday, formally announcing a 35% duty on all Canadian imports effective August 1. The move follows what Trump described as a breakdown in trade cooperation and a failure by Canada to address its role in the U.S. fentanyl crisis.

“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship,” Trump wrote to Prime Minister Mark Carney. He added that the tariff response comes after Canada “financially retaliated” against the U.S. rather than working to resolve the flow of fentanyl across the northern border.

Trump’s letter made clear the tariff will apply broadly, separate from any existing sector-specific levies, and included a warning that “goods transshipped to evade this higher Tariff will be subject to that higher Tariff.” The president also hinted that further retaliation from Canada could push rates even higher.

However, Trump left the door open for possible revisions. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” he said, adding that tariffs “may be modified, upward or downward, depending on our relationship.”

Canadian companies that move operations to the U.S. would be exempt, Trump said, noting his administration “will do everything possible to get approvals quickly, professionally, and routinely — In other words, in a matter of weeks.”

The U.S. traded over $762 billion in goods with Canada in 2024, with a trade deficit of $63.3 billion, a figure Trump called a “major threat” to both the economy and national security.

Speaking with NBC News on Thursday, Trump suggested even broader tariff hikes are coming, floating the idea of a 15% or 20% blanket rate on all imports. “We’re just going to say all of the remaining countries are going to pay,” he told Meet the Press moderator Kristen Welker, adding that “the tariffs have been very well-received” and noting that the stock market had hit new highs that day.

The Canadian announcement is part of a broader global tariff rollout. In recent days, Trump has notified at least 23 countries of new levies and revealed a separate 50% tariff on copper imports.

“Not everybody has to get a letter,” Trump said when asked if other leaders would be formally notified. “You know that. We’re just setting our tariffs.”

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