In a significant move, the U.S. House of Representatives has voted to repeal certain tariffs imposed by former President Donald Trump on Canadian imports. The 219-to-211 vote saw a few Republican members break ranks to join the Democrats in passing this largely symbolic measure. Despite the House’s decision, experts predict that any Senate approval would likely face a veto from Trump, necessitating a two-thirds majority in both chambers to override the President’s decision.
Tariffs Under Scrutiny
The resolution, spearheaded by Democratic Representative Gregory Meeks from New York, aims to overturn Trump’s 2025 invocation of the International Emergency Economic Powers Act, which led to a 35 per cent tariff on most Canadian goods not covered under the USMCA (United States-Mexico-Canada Agreement). Notably, this excludes oil, gas, and potash, which are subjected to a 10 per cent tariff. However, the resolution does not address sector-specific tariffs on steel, aluminium, automotive products, and more.
This legislative effort underscores ongoing tensions surrounding trade relations between the U.S. and Canada. Even with the House’s vote, the practical implications remain uncertain, as a veto from Trump appears imminent.
A Bridge Over Troubled Waters
In a related development, Trump has threatened to obstruct the opening of the Gordie Howe International Bridge, a new crossing linking Windsor, Ontario, and Detroit, Michigan. He demands that Ottawa concede to a list of conditions, including shared ownership of the bridge. In a recent post on Truth Social, Trump reiterated his grievances against Canada, claiming the nation has historically treated the U.S. unfairly.
The $6.4 billion bridge, financed by the Canadian government, is set to be publicly owned by both Canadian and Michigan authorities. Prime Minister Mark Carney subsequently spoke with Trump, characterising their discussion as constructive. Carney clarified that Canada funded the bridge’s construction and highlighted the collaborative nature of the project, which involved workers and materials from both nations.
Alberta’s Alcohol Imports Surge
On a different note, the trade dynamics between Canada and the U.S. have also shifted in the alcohol sector. While some provinces, particularly Ontario, have maintained strict restrictions on American alcoholic beverages leading to a staggering 95 per cent drop in imports, Alberta has reversed similar bans, resulting in a recovery of U.S. alcohol imports. Since lifting its restrictions last June, Alberta has seen a resurgence in the demand for U.S. bourbon, alongside a notable increase in interprovincial sales as Alberta retailers look to cater to consumers in Ontario.
Leadership Changes in Canadian Corporations
In the corporate arena, notable leadership changes are making headlines. The CAAT Pension Plan has placed CEO Derek Dobson on administrative leave following concerns regarding his conduct and board oversight. This follows the suspension of board chair Don Smith, who was removed amid governance inquiries. Kevin Fahey, previously chief investment officer, has stepped in as acting CEO.
In another shake-up, Telus Corporation has appointed Victor Dodig, former CEO of the Canadian Imperial Bank of Commerce, as its new chief executive. This unexpected transition comes as Telus prepares for new strategic directions under Dodig’s leadership, succeeding Darren Entwistle, who has served as CEO for many years.
Ontario Real Estate Firm’s Collapse
The real estate landscape in Ontario has also faced turmoil, as the bankruptcy of Reid’s Heritage Properties has left numerous investors in distress. With claims of nearly $100 million owed to 182 creditors, many investors report devastating financial consequences, including loss of homes and savings. Scott Reid, the firm’s president, is accused of misleading investors who had pooled their resources under the premise of profitable rental projects.
This situation has raised serious questions about accountability and transparency in the real estate sector, impacting not only the investors but also broader market confidence.
Why it Matters
The recent developments in U.S.-Canada trade relations, corporate leadership changes, and the fallout from the collapse of a major real estate firm indicate a complex landscape for investors and policymakers alike. As tariffs are scrutinised and new leadership takes charge in key organisations, the ripple effects will likely influence economic strategies and cross-border partnerships in the months to come. The outcomes of these issues could shape the future of trade, investment, and business governance across North America.
