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The Problem With Trudeau’s Fiscal Responsibility Message

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5 minute read

From the Canadian Taxpayers Federation

By Franco Terrazzano

This year’s interest charges will cost taxpayers more than $46 billion. That’s almost $4 billion every month that’s not going to improve services or lower taxes. It’s also a cost of more than $1,000 for every Canadian.

There’s only one problem with the federal government’s messaging about saving money: the feds aren’t actually saving money.

“The foundation of our Fall Economic Statement is our responsible fiscal plan,” said Finance Minister Chrystia Freeland.

The mid-year budget update shows the government increasing spending by $15 billion this year. A far cry from Freeland’s March promise to find “savings of $15.4 billion over the next five years.”

Next year, the government will increase spending by $30 billion. And that comes on top of an already ballooned baseline.

The feds spent all-time highs before the pandemic. That means Prime Minister Justin Trudeau was spending more before the pandemic than the feds did during any single year during World War II, even after accounting for inflation and population growth.

Freeland is trying to put Canadians’ minds at ease by claiming her deficits are “modest.” Canadians have heard this before.

When running for prime minister in 2015, Trudeau promised to run a few “modest” deficits of less than $10 billion before balancing the budget in 2019. Trudeau blew that balanced budget promise by a “modest” $20 billion.

This year’s deficit is projected to hit $40 billion. Deficits in 2024 and 2025 are both projected to be $38 billion.

Is this the new modest? Four times larger than the “modest” deficits Trudeau first promised?

The mid-year budget update proves this government has no idea how to balance a budget.

In fact, the only mention of a balanced budget in Ottawa comes from the Parliamentary Budget Officer, who forecasts the next balanced budget will happen in 2035. But that relies on the economy growing every year, relatively low interest rates and no new spending.

A government too incompetent to balance the budget means Canadians are paying dearly just to service the debt.

This year’s interest charges will cost taxpayers more than $46 billion. That’s almost $4 billion every month that’s not going to improve services or lower taxes. It’s also a cost of more than $1,000 for every Canadian.

Next year, debt interest charges will surpass federal health transfers to the provinces. Soon, every penny collected from the GST will go toward servicing the debt.

As bad as the budget is, the government could keep the ship from sinking with modest spending restraint.

The government could balance the budget next year by using its own projected program spending from two budget updates ago. Instead of running a $38-billion deficit next year, taxpayers would have a $1-billion surplus if Freeland just stuck to the spending plan she created in 2021.

This highlights the root of Trudeau’s spending problem – the ratchet effect. Almost every budget document released by this government drastically increases spending.

The mid-year budget update in 2019 first projected spending in 2024 to be $421 billion. This year’s budget update shows the government will spend $519 billion in 2024.

This government’s muscle for fiscal responsibility has atrophied.

MPs from all political parties can’t help themselves from taking a pay raise every year – regardless of the struggles their constituents endure. The prime minister can’t help but spend $61,000 on Manhattan hotel rooms during a two-day anti-poverty summit.

No one in government is willing to end the hundreds of millions in bureaucratic bonuses, despite departments consistently meeting less than half of their own performance targets.

The Liberals are also unwilling to take the air out of the ballooning bureaucracy, which increased by 98,000 employees since they took power. That’s almost 40 per cent more federal employees. The bureaucracy currently consumes half of every tax dollar used in day-to-day spending.

No party in the House of Commons is willing to oppose the more than $43 billion taxpayers are being forced to give multinational corporations to build battery plants.

This government hasn’t shown one iota of fiscal restraint. In fact, the government appears to be trying its best to run up the red ink. Fortunately for taxpayers, it would only take modest spending restraint for a serious government to bring the books back into black.

Franco Terrazzano is the Federal Director of the Canadian Taxpayers Federation

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

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MXM logo MxM News

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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Trump slaps Brazil with tariffs over social media censorship

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From LifeSiteNews

By Dan Frieth

In his letter dated July 9, 2025, addressed to President Luiz Inácio Lula da Silva, Trump ties new U.S. trade measures directly to Brazilian censorship.

U.S. President Donald Trump has launched a fierce rebuke of Brazil’s moves to silence American-run social media platforms, particularly Rumble and X.

In his letter dated July 9, 2025, addressed to President Luiz Inácio Lula da Silva, Trump ties new U.S. trade measures directly to Brazilian censorship.

He calls attention to “SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms,” pointing out that Brazil’s Supreme Court has been “threatening them with Millions of Dollars in Fines and Eviction from the Brazilian Social Media market.”

A formal letter dated July 9, 2025, from The White House addressed to His Excellency Luiz Inacio Lula da Silva, President of the Federative Republic of Brazil, discussing opposition to the trial of former President Jair Bolsonaro and announcing a 50% tariff on Brazilian products entering the United States due to alleged unfair trade practices and censorship issues, with a note on efforts to ease trade restrictions if Brazil changes certain policies.

A typed letter from Donald J. Trump, President of the United States of America, discussing tariffs related to Brazil, digital trade issues, and a Section 301 investigation, signed with his signature.

Trump warns that these actions are “due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” and states: “starting on August 1, 2025, we will charge Brazil a Tariff of 50% on any and all Brazilian products sent into the United States, separate from all Sectoral Tariffs.” He also adds that “Goods transshipped to evade this 50% Tariff will be subject to that higher Tariff.”

Brazil’s crackdown has targeted Rumble after it refused to comply with orders to block the account of Allan dos Santos, a Brazilian streamer living in the United States.

On February 21, 2025, Justice Alexandre de Moraes ordered Rumble’s suspension for non‑compliance, saying it failed “to comply with court orders.”

Earlier, from August to October 2024, Moraes had similarly ordered a nationwide block on X.

The court directed ISPs to suspend access and imposed fines after the platform refused to designate a legal representative and remove certain accounts.

Elon Musk responded: “Free speech is the bedrock of democracy and an unelected pseudo‑judge in Brazil is destroying it for political purposes.”

By linking censorship actions, particularly those targeting Rumble and X, to U.S. trade policy, Trump’s letter asserts that Brazil’s judiciary has moved into the arena of foreign policy and economic consequences.

The tariffs, he makes clear, are meant, at least in part, as a response to Brazil’s suppression of American free speech.

Trump’s decision to impose tariffs on Brazil for censoring American platforms may also serve as a clear signal to the European Union, which is advancing similar regulatory efforts under the guise of “disinformation” and “online safety.”

With the EU’s Digital Services Act and proposed “hate speech” legislation expanding government authority over content moderation, American companies face mounting pressure to comply with vague and sweeping takedown demands.

By framing censorship as a violation of U.S. free speech rights and linking it to trade consequences, Trump is effectively warning that any foreign attempt to suppress American voices or platforms could trigger similar economic retaliation.

Reprinted with permission from Reclaim The Net.

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