U.S. President Donald Trump called Canada “among the worst in the World to deal with” as the U.S. House of Representatives voted against his tariffs on America’s northern neighbour — a largely symbolic move that shows some wavering Republican support for the president’s massive trade agenda.

“Canada has taken advantage of the United States on Trade for many years. They are among the worst in the World to deal with, especially as it relates to our Northern Border,” Trump posted on social media Wednesday night as results of the vote became clear. “TARIFFS make a WIN for us, EASY. Republicans must keep it that way!”

Six Republicans joined Democrats in a bipartisan push against Trump’s so-called fentanyl emergency at the U.S.-Canada border, which the president used as justification for economywide tariffs against America’s northern neighbour last year.

While Wednesday’s motion passed, it did not get the two-thirds majority it would need to become veto-proof. When it lands on Trump’s desk, it is expected to be shut down.

Canada is also being hammered by separate sector-specific tariffs on industries like steel, aluminum, automobiles and lumber that Trump enacted through a different presidential power.

The bipartisan support does demonstrate Republican uncertainty around Trump’s erratic trade policies directed towards Canada.

Democrat Rep. Gregory Meeks, who introduced the bill, said Canada isn’t a threat.

“Canada is our friend. Canada is our ally,” Meeks said. “Canadians have fought alongside Americans.”

1:08
Bessent asked if U.S. would drop all tariffs if Canada did the same: ‘Absolutely not’

Trump declared the emergency in order to use the International Economic Emergency Powers Act, also called IEEPA, to hit Canada with 35 per cent tariffs. Those duties do not apply to goods compliant under the Canada-U.S.-Mexico Agreement on trade, known as CUSMA.

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Meeks said U.S. government data shows a minuscule amount of fentanyl is seized at the northern border compared to the border with Mexico.

In response to Trump’s stated concerns about fentanyl, Ottawa boosted border security measures, with more boots on the ground and drones in the air. Canadian police forces have widely promoted drug seizures in news releases.

During debate in the House earlier Wednesday, Brian Mast, a Republican from Florida, pointed to those drug seizures in Canada and Ottawa’s appointment of a “fentanyl czar” as evidence the problem is real. He also said Canada hasn’t done enough to crack down on drugs.

“Democrats don’t recognize that there is a crisis that it is killing thousands of Americans,” Mast said.

The Senate has voted repeatedly to overturn the fentanyl duties but a procedural rule allowed the House to avoid any votes on Trump’s tariff agenda. That ended Tuesday, when three Republicans joined Democrats to stop the extension of the procedural rule.

While the U.S. Constitution reserves power over taxation and tariffs for Congress, Trump’s duties have so far faced little public resistance from Republican lawmakers, despite concerns shared behind closed doors among traditional GOP free-traders.

“Any Republican, in the House or the Senate, that votes against TARIFFS will seriously suffer the consequences come Election time, and that includes Primaries!” Trump wrote in a separate Truth Social post Wednesday.

“TARIFFS have given us Economic and National Security, and no Republican should be responsible for destroying this privilege.”

IEEPA has become Trump’s favourite tool to impose or threaten tariffs — but its future is uncertain.

The U.S. Supreme Court is still weighing whether Trump can continue using IEEPA. The conservative-led U.S. Supreme Court appeared skeptical during a hearing on IEEPA in November.

Rep. Adrian Smith, a Republican for Nebraska, said Wednesday’s vote should be delayed until after America’s top court rules on the IEEPA tool. He said Canada is a friend but Trump’s use of duties has pushed Ottawa to have difficult conversations about trade irritants. He cited the example of the digital services tax, which Prime Minister Mark Carney paused to appease the president last year.

Trump’s inconsistent use of tariffs and his claims that Canada should become a U.S. state are hurting American businesses, multiple Democrats told the House. Many also pointed to the president’s Monday social media post threatening to stall the opening of the Gordie Howe International Bridge connecting Ontario to Michigan.

2:15
Why is Trump threatening to block the Gordie Howe bridge from opening?

Representatives from Nevada spoke about the drop in tourism and others from Oregon said Canadian alcohol boycotts were devastating the wine industry.

Rep. Linda Sanchez, a Democrat for California, said claims that Canada is a fentanyl threat are not borne out by facts. She pointed out that CUSMA was negotiated during the first Trump administration and ratified by Congress.

Responsible governments follow the law on trade agreements and don’t negotiate through weird social media tantrums, she said.

“It’s just reckless and frankly, it’s bizarre.”

Trump’s post about Canada was the only comment he made Wednesday about the country, which was grieving Tuesday’s mass shooting in Tumbler Ridge, B.C. that killed eight people and injured about 25 others.

Other world leaders, as well as U.S. Ambassador to Canada Pete Hoekstra, have offered condolences to Canada and Tumbler Ridge in the wake of the tragedy.

—With additional files from Global News

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Ontario’s financial watchdog says the province is not currently on a path to balance as spending ticks up and revenue from taxation begins to fall in the face of a cost-of-living crisis.

The Financial Accountability Officer of Ontario found that the provincial government’s budget deficit will increase to $11.1 billion in the 2025-26 year, an increase from the previous year.

The annual deficit will improve to $11.18 billion in the 2026-27 year and slowly improve. While the picture will get better, the FAO found there will still be a deficit of $6.3 billion for the 2029-30 year.

Part of the issue, the watchdog suggests, is that the province’s revenue will fall far below previous years.

The average increase in revenue over the past five years has been 7.6 per cent, according to the FAO. Over the next half-decade, that will drop to an average increase of 2.6 per cent.

“The slowdown in revenue growth reflects the FAO’s expected moderation in economic activity compared to the previous five years,” the report read.

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“Revenue growth over the outlook is also constrained by declines in interest and investment income and international student tuition revenue in the colleges sector.”

2:25
Ontario deficit to explode next year, budget watchdog projects

Finance Minister Peter Bethlenfalvy released figures Tuesday projecting the 2025-26 deficit will be $13.4 billion, higher than the FAO’s suggestion.

He refused to “speculate” on the figures in the upcoming budget when asked if he was still confident Ontario was on a path to balance.

“Ontario continues to navigate a period of global economic and geopolitical uncertainty,” he told reporters. “And in spite of this uncertainty, Ontario’s economy proved to be resilient and continued to grow in 2025.”

The FAO’s report projects employment will increase, with job losses in tariff-hit industries offset by other gains.

“Annual employment growth is projected to slow to 0.3 per cent in 2026 and then improve to 0.9 per cent in 2027 as Ontario’s labour market adjusts to a new global trade environment,” the report said.

“The annual unemployment rate is projected to improve to 7.6 per cent in 2026 and continue to trend down over the remainder of the outlook.”

Ontario NDP MPP Jessica Bell said the government couldn’t hide from the overall unemployment numbers.

“No amount of spin from Minister Bethlenfalvy can hide these staggering unemployment numbers and a record-high provincial debt,” she said in a statement.

“We need a plan that brings significant investments into infrastructure and public services — from schools to hospitals — to strengthen Ontario’s economy and create good jobs.”

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U.S. President Donald Trump said Monday he will block the opening of a new bridge and trade route connecting Ontario and Michigan until the United States is “compensated for everything we have given” Canada.

In a lengthy post on his Truth Social website, Trump called for immediate negotiations over the Gordie Howe International Bridge between Windsor, Ont., and Detroit, Mich., that he said would seek U.S. ownership of “at least one half of this asset.”

He cited Ottawa’s recent trade agreement with China, Canadian tariff quotas for American dairy products, and Ontario’s ban on U.S. alcohol among his irritants with Canada, and that the bridge is the latest example of Canada treating the U.S. “very unfairly for decades.”

“Canada is building a massive bridge between Ontario and Michigan. They own both the Canada and the United States side and, of course, built it with virtually no U.S. content,” Trump wrote. “President Barack Hussein Obama stupidly gave them a waiver so they could get around the BUY AMERICAN Act, and not use any American products, including our Steel.

“Now, the Canadian Government expects me, as President of the United States, to PERMIT them to just ‘take advantage of America!’ What does the United States of America get — Absolutely NOTHING!”

He later continued: “I will not allow this bridge to open until the United States is fully compensated for everything we have given them, and also, importantly, Canada treats the United States with the Fairness and Respect that we deserve.

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“We will start negotiations, IMMEDIATELY. With all that we have given them, we should own, perhaps, at least one half of this asset. The revenues generated because of the U.S. Market will be astronomical.”

The Windsor–Detroit Bridge Authority, the Canadian Crown corporation responsible for overseeing the bridge’s construction, said Friday that “major construction” is complete and testing work is underway leading up to this year’s opening.

5:23
Canada’s newest border crossing links Windsor and Detroit

The bridge will serve as a new crossing within the busy Ontario-Michigan trade corridor and aims to ease traffic on the nearby Ambassador Bridge.

The Canadian government says it is funding the entire project, which will be publicly owned by both Canada and Michigan.

About a third of all trade between the U.S. and Canada occurs between Detroit and Windsor.

Trump’s post is the latest sign of souring relations with Canada since Prime Minister Mark Carney’s widely viewed and praised speech at the World Economic Forum in Davos, Switzerland.

Carney in that speech warned of a “rupture” to the U.S.-led international rules-based order and urged countries to band together to withstand pressure from great powers, a reference to Trump’s global trade wars and attacks on allies.

In response, Trump told the same gathering of political and business leaders that “Canada lives because of the United States” and warned Carney to “remember that.”

Trump has since criticized Canada for reaching a deal with China that eases tariffs on each country’s goods and will allow a certain amount of Chinese EVs to be sold into Canada.

His post Monday repeated his claim that China will “eat Canada alive,” adding the U.S. will “just get the leftovers.”

“The first thing China will do is terminate ALL Ice Hockey being played in Canada, and permanently eliminate The Stanley Cup,” Trump added.

Carney has repeatedly said his government is not pursuing free trade with China as Trump has claimed, but rather seeking a “strategic partnership” that allows for limited economic cooperation.

The strained relationship comes ahead of this summer’s scheduled review of the Canada-U.S.-Mexico Agreement on free trade.

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The Opposition Conservatives are calling on the federal Liberal government to reduce taxes on severance packages for laid-off General Motors workers in Ingersoll, Ont.

Conservative Leader Pierre Poilievre penned a letter Sunday, co-signed by labour critic Kyle Seeback and local MP Arpan Khanna, addressed to Finance Minister François-Philippe Champagne calling for an exemption to the withholding taxes that ding severance pay.

In a draft version of the letter seen by The Canadian Press, the Conservatives argue taxes on a big chunk of GM’s lump-sum severance payments could deprive out-of-work employees of “tens of thousands of dollars,” adding “insult to injury.”

The federal Tories said waiting until after tax season to recover funds is not a reasonable solution for workers who recently lost their regular paycheques and still need money for their mortgages and grocery bills.

“These men and women worked hard, played by the rules and built things this country depends on. The least your government can do is stop taking their money at the worst possible moment,” the letter said.

“That is why I am asking you to use your existing authority to reduce the amount of tax withheld on these payments for workers affected by the GM CAMI layoffs.”

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The letter comes just ahead of the start of tax-filing season and days after Carney unveiled his new strategy for the automotive sector.

GM announced last year it would end its BrightDrop electric-vehicle production at the CAMI Assembly plant in Ingersoll, citing weaker-than-expected market demand and a challenging regulatory environment in the U.S.

More than a thousand employees have been laid off.

3:35
Canada and Korea sign MOU on auto manufacturing

Meanwhile, GM’s Oshawa Assembly is shuttering one of three shifts, laying off some 500 employees in a move expected to affect upward of a thousand workers across the supply chain.

Unifor, the union representing the GM employees, has accused U.S. President Donald Trump of upending Ontario’s auto sector and hitting the Ingersoll GM plant on multiple fronts. Trump introduced 25 per cent tariffs on non-U.S. auto content and policies that upended the U.S. EV industry.

Prime Minister Mark Carney announced a new automotive industrial strategy last Thursday, which he vowed would “drive investment” in the sector and set a “sovereign path” to reduce auto emissions.

The strategy would remove the EV sales mandate in exchange for stricter auto-emissions standards and re-introduce the EV rebate program.

It comes on the heels of a deal the prime minister made in Beijing, granting a set quota of Chinese EVs into the country at a minimal tariff rate. Carney has also said Ottawa has been in talks with Korean and Chinese investors interested in Canada’s auto sector.

The Conservatives dismissed Carney’s new auto strategy in their letter for being unhelpful to auto-sector workers who have been left reeling as their industry buckles.

“Canadians are still waiting for your government to deliver the trade deal with the United States you promised by July 21 (2025) and a clear plan to protect Canadian jobs,” the Conservative MPs wrote.

“Instead of presenting a serious plan to defend our auto workers, you’ve just announced a rebate that will subsidize American-made EVs.”

Canada is entering into talks this year over renewing the Canada-United States-Mexico Agreement, as the free-trade pact comes up for review among the signatories.

Carney said Thursday his objective remains getting all tariffs removed, but that is clearly not Trump’s objective, so Canada must “prepare for all possibilities.”

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Prime Minister Mark Carney is expected to announce a national automotive strategy Thursday which will scrap the electric vehicle sales mandate in favour of new vehicle emissions standards and revive consumer rebates for EV purchases.

Ottawa is also set to announce an EV infrastructure fund, expected to be worth $1.5 billion.

Government and industry sources, who were not authorized to publicly discuss details ahead of the announcement, say Ottawa will introduce emission standards on new vehicles similar to what’s in place in Europe.

The European Union sets emissions performance standards for new passenger cars and vans, commonly known as “corporate average fuel efficiency” standards, or CAFE. The system requires that average emissions from all new passenger cars and vans meet specific emissions targets.

The European Commission says the regulations led to a 28 per cent decrease in emissions from all new passenger cars between 2019 and 2024, while emissions from new vans dropped nine per cent.

While it’s not clear what Canada’s standards will be, Europe’s current target is to ensure that all new cars and vans produce no emissions by 2035 — although revised regulations proposed in December would reduce the target to 90 per cent, allowing some flexibility for plug-in hybrids.

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One source said Canada’s new emissions regulations would get close to the reduction in emissions set out in the original EV mandate.

The previous Liberal government set a target of having EVs account for at least 20 per cent of sales across Canada this year. The target was to increase to 100 per cent by 2035.

Carney paused the EV mandate in September and launched a 60-day review to offer Canada’s auto sector liquidity in the face of the ongoing trade war with the United States.

2:06
Prime Minister Carney pauses EV mandates for 2026

Automakers had called on the government to scrap the sales mandate altogether, arguing it was unnecessary since Canada already has other policies to meet its emissions reduction targets.

As first reported by CBC News, the government is also expected to revive the popular incentives program to encourage Canadians to buy new EVs.

The incentive for zero-emission vehicles program — iZEV for short — was paused last year after its funding pool of more than $3 billion ran out.

Sources tell The Canadian Press the government will bring back the rebates at a similar level. Ottawa is expected to offer $5,000 toward the purchase of a new fully electric vehicle and $2,500 for plug-in hybrids.

Previously, fully-electric and longer-range plug-in hybrid electric vehicles received the full $5,000 rebate, while shorter-range ones were eligible for a $2,500 rebate.

Conventional hybrid vehicles will no longer be eligible for rebates, but manufacturers will be able to claim emissions credits for selling them.

Federal ministers promised during and after the spring election campaign to being back the incentives but never set a date. That frustrated car dealers who said EV sales slumped as consumers opted to wait for the rebates to return.

EV sales in Canada started to rise toward the end of 2025. According to the most recent data from Statistics Canada, EVs accounted for 11.3 per cent of all new vehicle sales in November.

Monthly sales peaked in December of 2024 at 18.29 per cent, before the iZEV program was paused.

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