Hello, welcome to Politics Insider. Let’s look at what happened today.
Mark Carney says Canada will not immediately retaliate after U.S. President Donald Trump raised tariffs on steel and aluminum today to 50 per cent.
The Prime Minister cited ongoing negotiations for a new trade and security deal with Washington in explaining his government’s restraint.
Adrian Morrow reports that, speaking to reporters before a caucus meeting in Ottawa, Carney described Trump’s tariffs as “unjustified” and “illegal” but said Ottawa would hold off on responding.
“We will take some time, not much, some time, because we are in intensive discussions right now with the Americans on the trading relationship,” the Prime Minister said. “Those discussions are progressing.”
Trump initially imposed tariffs of 25 per cent on the metals in March. The tariffs apply globally but disproportionately hit Canada, which is the largest supplier of both metals to the United States.
Roughly half of U.S. aluminum imports and nearly a quarter of steel imports come from Canada.
Meanwhile, the NDP caucus says it will vote against the government’s Throne Speech, taking a stand against the plan in a confidence vote.
Because the speech is generally a confidence matter, the minority government could be defeated if it loses such a vote.
The Liberals are governing with 169 members and would need the backing of another party to support the speech. There are 144 Conservatives in the Commons, 22 members of the Bloc Québécois, seven NDP MPs and one Green Party MP.
Interim NDP Leader Don Davies told a news conference on Parliament Hill today that the Throne Speech does not address the priorities of the 1.2-million Canadians who voted for the party in the recent election.
Specifically, he mentioned health care, housing and jobs.
“Frankly, it’s a Conservative-lite Throne Speech. It’s not a speech that reflects the priorities of New Democrats or the working Canadians we represent,” Davies said. “We’ll see what the other parties do.”
King Charles delivered the speech, largely written by the government in consultation with the King’s office, during a visit to Ottawa last week.
Asked if he was ready to precipitate an election, Davies said Canadians don’t want an election now.
“But Canadians also sent us here to take principled positions and advocate for the policies we know working people need, so we have no problem as a New Democratic caucus saying this Throne Speech just doesn’t deliver for Canadians. We’re going to vote accordingly.”
Read the full story here.
And the Bank of Canada announced today that it would hold its key interest rate steady at 2.75 per cent for the second consecutive time, citing ongoing trade uncertainty and an economy that continues to chug along.
Nojoud Al Mallees reports that the decision was in line with financial market expectations, which favoured a hold after recent strong-than-expected economic data.
“With uncertainty about U.S. tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, governing council decided to hold the policy rate as we gain more information on U.S. trade policy and its impacts,” the central bank said in a news release.
A Canadian national flag is seen in the background as workers cross the street in front of ArcelorMittal Dofasco’s steel manufacturing buildings in Hamilton, Ontario, Canada, on Wednesday, June 4, 2025.COLE BURSTON/AFP/Getty Images
Algoma CEO calls for Ottawa to level steel tariffs on foreign dumpers right away: Michael Garcia wants tariffs on all steel imports to protect the domestic industry in the face of the tremendous pressure being exerted by U.S. President Donald Trump.
Jobs Minister presses Canada Post, union to reach a deal: Patty Hajdu is asking the Crown corporation and the Canadian Union of Postal Workers to continue working toward a deal outside the binding arbitration process.
Canadians go elbows up on U.S. travel, opting for these destinations instead: A growing number of Canadians are choosing to spend their vacation dollars outside the United States, with Canadian tourism to Mexico, Japan and a handful of European destinations surging nearly 30 per cent.
Mayors in border communities call on Ottawa to boost support for duty-free shops: The strain on the Canada-U.S. relationship has led to a drop in border traffic, and duty-free stores are struggling to stay afloat.
Mark Carney is rooting for his hometown Oilers: The Prime Minister frequently posts on social media hollering about the Oilers – among the very few moments when his strategic and cerebral polish gives way to something almost goofy.
Prime Minister’s Day: Mark Carney attended the Liberal caucus meeting and Question Period.
Party Leaders:
Bloc Québécois Leader Yves-François Blanchet participated in Question Period.
Green Party Leader Elizabeth May attended the House of Commons.
NDP Interim Leader Don Davies held a news conference on Parliament Hill.
No schedule released for Conservative Leader Pierre Poilievre.
Quote of the day
“The U.S. is negotiating with a number of countries, including Canada. That has the potential to roll tariffs back at least some way, but at this point, the outcome of those negotiations remains pretty uncertain.” – Bank of Canada Governor Tiff Macklem, at a news conference today regarding the bank’s latest interest-rate decision.
How many G7 summits has Canada hosted since joining the organization in 1976 and where have those conferences been held?
Scroll to the bottom of this newsletter for the answer.
But now, the way we fight wars has changed. And Canada has no equivalent program for the modern equivalent of ammo: cheap, armed drones.
— Eliot Pence is the founder of Tofino Capital and the former head of international growth for Anduril Industries.
Mark Carney is making himself the moonshot Prime Minister – for better or worse
Indeed, his confidence and perceived competence were in large part what won him the election, so he wasn’t going to shelve that ambition just because his party ended up three seats short of a majority, and especially not when the Bloc Quebecois has promised to lend the government its support for the next year. Canadians elected Mr. Carney’s Liberals to do big things, and now they expect him to deliver.
— Robyn Urback, Columnist
Bank of Canada should have cut interest rates instead of pausing
The Bank of Canada left its policy interest rate at 2.75 per cent on Wednesday, confirming market expectations. Data showing stubbornly high underlying inflation and robust-looking first-quarter gross domestic product had led markets to price in only about a 20-per-cent probability of this cut.
— Jeremy Kronick is vice-president and director of the Centre on Financial and Monetary Policy at the C.D. Howe Institute, where Steve Ambler, a professor of economics at Université du Québec à Montréal, is the David Dodge Chair in Monetary Policy.
The Decibel: Today’s episode of The Globe and Mail podcast unpacks the nationwide push to fast-track major projects, with Jeff Gray explaining the wave of fast-track legislation across Canada.
Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.
The answer to today’s question: The first was in Montebello, Que., in 1981, with attendees that included prime minister Pierre Trudeau, U.S. president Ronald Reagan and British prime minister Margaret Thatcher. Subsequent conferences were held in Toronto in 1988, Halifax in 1995, Kananaskis, Alta., in 2002, Muskoka in Ontario in 2010 and Charlevoix, Que., in 2018. The next G7 summit will be held in Kananaskis from June 15-17.
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