Author: Sean Boynton
The growing impact of U.S. President Donald Trump’s tariffs is creating “tensions” among members of the G7 heading into a critical summit in Canada next month, the federal finance minister says.
Finance Minister François-Philippe Champagne and Bank of Canada governor Tiff Macklem are chairing three days of meetings with top finance officials from the world’s largest economies in Banff, Alta., this week. The talks are expected to focus on the war in Ukraine and artificial intelligence, and how the G7 members can work together to grow the global economy.However, Trump’s aggressive trade policies are likely to dominate the proceedings, and could even impact what members can feasibly agree to.“There’s no doubt that around the table, you need to find unity, but at the same time, it’s true that the tariffs are creating tensions amongst the different partners,” Champagne told Global News in an interview from Calgary on Tuesday. Story continues below advertisement
“Everyone understands that the fiscal capacity of countries is more constrained coming out of COVID. We have big things to do with respect to defence, with respect to infrastructure, with respect to housing.”He continued: “So my mission as the chair is really to make sure that we can work together, remove the uncertainty that we’re seeing, the instability we’ve seen in the market, and focus on growth measures that are going to be beneficial for all of us.”Other G7 finance officials have expressed their intention to resolve trade disputes with the U.S. as quickly as possible ahead of this week’s meetings.“Tariffs and uncertainties are a burden on our economy and therefore also on job security,” German Finance Minister Lars Klingbeil said in Berlin on Tuesday before leaving for Canada.
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Champagne said U.S. Treasury Secretary Scott Bessent will be representing the Trump administration at the Banff summit. Story continues below advertisement
He would not say if he and other G7 finance officials will be urging Bessent to lift Trump’s tariffs during the talks — which Bessent and other administration officials have said is not something they are considering, although they say countries can negotiate lower tariffs through new trade deals.
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A U.S. Treasury spokesperson said Bessent will push the other G7 countries to address imbalances and non-market practices, including in their own economies, and counteract China’s state-driven economic model.“The G7 must work together to protect our workers and firms from China’s unfair practices,” the spokesperson added.Pressed by reporters at a press conference later on Tuesday, Champagne acknowledged officials will be be discussing “the issues that are front and centre” but will be seeking a united front on the challenges facing the world.“I look very much look forward to the contribution of Secretary Bessent,” he said. “All the colleagues are very eager to meet with him and to really have a chance to discuss frankly, openly, how we can work together.”This week’s gathering will be a precursor to the G7 Leaders’ Summit that will happen in Kananaskis, Alta., from June 15 to 17, which will see Trump join Prime Minister Mark Carney and leaders from Japan and Europe for high-level talks.
Ottawa, Alberta working together on energy, Champagne says
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Champagne told Global News he met with Alberta Premier Danielle Smith in Calgary earlier Tuesday, where the two discussed the federal government’s commitment to expanding energy production and projects in Canada. Story continues below advertisement
The minister said hosting the G7 talks in Alberta will showcase the potential for the province, and Canada as a whole, to supply oil and gas and other natural resources to the rest of the world. That’s a message he also shared with Smith, he added.“This morning was all about opportunities, making sure that we see how can we seize this moment that we have ahead of us and be ambitious and build the Canada of the future together,” Champagne said.“There’s a lot of projects that we need to bring oil to market. We’ve been looking at different things together and she knows that we’re keen to work together, and that we are stronger together.”
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Champagne said he also met with Ukrainian Finance Minister Sergii Marchenko before heading to Banff, where Marchenko is also set to participate in some of the talks. Story continues below advertisement
The ministers discussed ways to work on Ukraine’s reconstruction as well as ways Canada can help Ukraine economically, Champagne said.“There’s a moral imperative to help our Ukrainian friends who have fought for democracy,” he said. “But at the same time, there is a lot that Canada can offer when it comes to energy, when it come to oil and gas, when it’s comes to infrastructure, when it comes to housing.”In Italy last year, leaders committed to keeping Russian assets frozen and redirecting them to provide Ukraine with financial support.Since Trump returned to power last January, however, he has threatened to withhold funding from Ukraine and forced it to sign a critical minerals agreement in exchange for continued support against Russia’s aggression.The EU and Britain announced new sanctions against Russia on Tuesday without waiting for Washington to join them, a day after Trump’s phone call with Russian President Vladimir Putin brought about neither a ceasefire in Ukraine nor fresh U.S. sanctions.—with files from the Canadian Press and Reuters
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The federal government does not plan to table a federal budget before the House of Commons rises this summer, the finance minister said Wednesday, drawing criticism from opposition parties of Prime Minister Mark Carney’s priorities.
Finance Minister François-Philippe Champagne said the government’s first priority will be to pass what the Liberals are calling a “middle-class tax cut” by July 1.“That’s step one,” Champagne told reporters after a cabinet meeting in Ottawa, the first since the new ministry was sworn in Tuesday.“Step two, you’re going to have a throne speech where we’ll outline the Canadian government’s priorities, and there will be a fall economic statement to follow. So those are really the sequence (of events) that you’re going to see.”Champagne said the proposed tax cut will be introduced through a ways and means motion in the House of Commons that will be tabled immediately after Parliament returns on May 26. Story continues below advertisement
Carney on Wednesday signed a document, which he called an “order,” that he said would deliver the tax cut.“We promised the middle-class tax cut leading to over $800 of savings for two-income households,” Carney said.“We are acting today on that, so that by July 1, as promised, that middle-class tax cut … will (come) into effect. We’re acting on affordability as we look to build up this economy.”Champagne said prioritizing the tax cut shows the Liberals are listening to Canadians.“This is very significant and it sends a very strong and clear message to Canadians that we care, that we understand that one of the first concerns they have is about affordability,” he said.
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While campaigning as Liberal Party leader, Carney pledged to reduce the lowest marginal tax bracket by one per cent. Story continues below advertisement
The lowest tax bracket as of now is 15 per cent of all qualifying income earned up to $57,375. Carney’s promise would bring that down to 14 per cent instead.
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The Liberals, who won a minority government in the House of Commons, will need some opposition votes to pass any legislation.“We expect other parliamentarians to support, obviously, the government, because this is about Canadians,” Champagne said when asked about the upcoming vote. “This is a way for all parliamentarians to show up and say, ‘Yes, we support Canadians at a time where they need a break.’”
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Conservative Leader Pierre Poilievre and interim NDP leader Don Davies both said it’s unacceptable that Carney will not produce a fiscal plan anytime soon.“There is no road map forward, no economic vision and no willingness to lead,” Poilievre said in a statement.“Canadians were told that Mark Carney, the supposed serious economist, would bring competence and clarity. Instead, we’re getting delays and disfunction.”Davies said Parliament needs to be able to scrutinize the Liberal government’s spending plans and Ottawa should not delay federal spending in light of the economic crisis brought about by U.S. tariffs.
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“It’s Parliament’s most basic function to authorize and scrutinize spending. We need an economic plan tabled in the House of Commons in June,” he said in a statement. Story continues below advertisement
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King Charles III is scheduled to deliver the Speech from the Throne to Parliament on May 27, outlining the new government’s vision.After the throne speech is delivered, the government will introduce a motion that triggers up to six days of debate, after which the House of Commons will vote on approving the speech and the government’s agenda.The motion effectively serves as the first measure of confidence in the government, as passing it would allow the government to begin carrying out its legislative priorities.Budgets and fiscal updates are also typically treated as confidence votes for the government when presented in Parliament.Poilievre, who put forward his own tax cut plan during the campaign, and Conservative MP Andrew Scheer — who will lead the party in the House of Commons until Poilievre can regain a seat in Parliament — have not said if Conservatives will support the Liberals’ tax cut proposal. Story continues below advertisement
Carney’s government also announced Wednesday several new cabinet committees meant to reflect his government’s focus on shoring up Canada’s sovereignty and improving Canadians’ quality of life.They include one committee dealing with priorities, planning and strategy, which will be chaired by Carney, and a new “Build Canada” committee focused on strengthening Canada’s economy, according to information published on the prime minister’s website.Carney also struck a committee on government transformation and efficiency tasked with reducing government spending.Another committee deals with ensuring a “secure and sovereign Canada,” managing Canada-U.S. relations and advancing “Canada’s interests around the world.”— with files from the Canadian Press
© 2025 Global News, a division of Corus Entertainment Inc.
Prime Minister Mark Carney is expected to overhaul his cabinet Tuesday, with over 50 per cent of the MPs who will be heading to Rideau Hall set to be first-time ministers, sources tell Global News.
The cabinet will be separated into two groups, sources say.The first group will be made up of senior cabinet ministers, with fewer than 30 people holding key portfolios — including foreign affairs, defence, and the minister poised to lead negotiations with the Trump administration.International Trade Minister Dominic LeBlanc and Finance Minister Francois-Phillipe Champagne are anticipated to stay in their posts.But multiple sources tell Global News that Foreign Affairs Minister Melanie Joly may be shuffled out of her current role.Multiple sources say Anita Anand will be the new justice minister. Story continues below advertisement
Multiple sources said it was likely Chrystia Freeland – a key member of the previous Liberal government who Carney named internal trade minister last month – would be out of cabinet, but by Monday night senior Liberal sources including one with direct knowledge of the plans said she would remain in.Half a dozen sources throughout the day and evening described the process of determining who would be in cabinet as “chaotic.”Housing Minister Nate Erskine-Smith is also not anticipated to return to cabinet, sources say.
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New faces expected to be senior cabinet ministers are Vancouver Fraserview—South Burnaby MP Gregor Robertson, the former mayor of Vancouver, and Markham—Thornhill MP Tim Hodgson, a former executive at Hydro One and an advisor to Carney when the prime minister served as governor of the Bank of Canada.Carney is also expected to seek regional representation at the cabinet table. That means Desnethé—Missinippi—Churchill River MP Buckley Belanger, the only Liberal MP from Saskatchewan, and Calgary Confederation MP Corey Hogan are expected to make the cut.The second cabinet group will consist of up to 10 junior ministers, roles the government plans to call “secretaries of state” but which in the past have been “formally appointed as ministers of state to assist,” according to federal records.“Secretaries of State are sworn to the Privy Council and are members of the Ministry. As such, they are bound by collective responsibility. They are not, however, members of the Cabinet. Secretaries of State are assigned to assist Cabinet Ministers in specific areas within their portfolios,” said a record of the roles when they were last used under former prime minister Jean Chretien. Story continues below advertisement
“Secretaries of State are paid 75 per cent of a Cabinet Minister’s salary. For legal purposes, the Secretaries of State are formally appointed as Ministers of State to Assist.”The job of a secretary of state in Carney’s cabinet will be to assist senior ministers in portfolios like natural resources and defence, sources say.A top expectation for one of those roles is Châteauguay—Les Jardins-de-Napierville MP Nathalie Provost, a survivor of the Ecole Polytechnic shooting and a star candidate in Quebec.
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Other potential junior ministers are Toronto Centre MP Evan Solomon, the long-time broadcaster who’s also a close personal friend of Carney’s; Marc-Aurèle-Fortin MP Carlos Leitão, the former Quebec finance minister; and LaSalle—Émard—Verdun MP Claude Guay, the one-time CEO of IBM Canada.Canadians will find out who’s secured a spot in cabinet when members are seen arriving at Rideau Hall ahead of Tuesday’s swearing-in ceremony.
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How will the swearing-in ceremony work?
The swearing-in ceremony is expected to begin at 10:30 a.m. eastern at Rideau Hall in Ottawa, and comes nearly two months to the day after Carney’s last one. Story continues below advertisement
Carney himself will not have to retake the oath of office as prime minister as he was sworn in two months prior. However, he can choose to do so again, and if he chooses to add a ministerial portfolio to his responsibilities, he will have to take the oath of office for that role.Following this, ministers-designate are then sworn in to their portfolios in an order determined by the prime minister, including those who may be changing or adding new roles.Those who return to the same roles won’t have to take another oath but can choose to do so.Those taking on a ministerial role for the first time must take the oath of allegiance, oath of the members of the Privy Council and oath of office.
How big could cabinet be?
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When Carney’s first cabinet was sworn in, there were 23 members, not including the prime minister — down from well over 30 under former prime minister Justin Trudeau. Story continues below advertisement
The Liberals have been elected or re-elected in 170 seats, though three are pending recounts that are expected to be finished after the cabinet is named.The prime minister has committed to gender parity with his cabinet and said he would again have a smaller cabinet, though he did not say last week if it would remain at 23.“I committed to an efficient cabinet, a focused cabinet, a cabinet with parity, gender parity, and we’ll work towards it,” Carney told reporters at his first post-election press conference.Regional representation will also be a factor, as prime ministers often try to have cabinet members from all parts of the country.It also remains to be seen whether Carney will choose members from Prince Edward Island or the three northern territories, none of which currently have cabinet representation.
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What are some of the major roles?
Also at hand is whether Carney will keep some ministers in key roles related to Canada’s ongoing relationship with the U.S. Story continues below advertisement
U.S. President Donald Trump’s trade war was a major focus for Canadians in the recent federal election, with polling done by Ipsos exclusively for Global News showing it was one of the top concerns shaping voters’ minds.Trump himself has appeared to joke about helping Carney win the election.LeBlanc, Joly and Champagne all joined Carney when he met with Trump last week in Washington.All eyes will be on whether they remain in those roles, especially as Carney faces ongoing talks with Trump regarding the various tariffs imposed on Canada.The prime minister will, however, have to replace his health minister, as Kamal Khera lost re-election.Regardless of who is named to cabinet, Carney and his ministers will need to negotiate with other parties to pass legislation in a minority government.Parliament is expected to return on May 26, with King Charles III set to deliver the throne speech on May 27, the first time since 1977 that a monarch has delivered the address.“This is an historic honour which matches the weight of our times,” Carney said. “I made the request of His Majesty and he has accepted, he will open Parliament with the Speech from the Throne, and that clearly underscores the sovereignty of our country.” Story continues below advertisement
—With files from Global’s Mercedes Stephenson and David Akin