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Dominic LeBlanc and Janice Charette return to Washington to finalize Canada-U.S. trade deal

Canada-U.S. Trade Minister Dominic LeBlanc is heading back to Washington to meet again with U.S. Trade Representative Jamieson Greer, alongside Canada’s chief negotiator Janice Charette, at 12:15 p.m. ET as work continues to finalize a deal to avert a new round of U.S. tariffs, reports The Canadian Press.

LeBlanc was in Ottawa on Wednesday to brief Prime Minister Mark Carney on the status of talks and take part in a virtual cabinet meeting that was followed by one with the premiers.

Reuters: Top Canada, US trade negotiators to meet again as deal deadline nears

U.S. national debt has topped US$40 trillion for the first time [updated]

The Independent: US national debt more than doubling in only a decade.

The United States has never owed so much money.

On Tuesday, the debt surpassed the US$40 trillion (CA$55 trillion) mark, according to the Treasury Department, reports Jesús Sérvulo González of EL PAÍS.

The figure comes amid growing concerns about rising financing costs for the economy, with 30-year bond yields hitting highs not seen in nearly two decades. The yield on those long-term securities has climbed to 5.3%, the highest level since 2007, driven by doubts that the Trump administration can rein in inflation and curb the public deficit, as well as the frenzy around artificial intelligence (AI), which is prompting big tech companies to take on more debt.

The budget deficit has worsened since Trump returned to the Oval Office.

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Opposition to AI data centres is surging across Canada

Public opposition to artificial intelligence data centre projects is surging across Canada as outrage over the projects’ energy and water use, noise pollution, carbon footprint—and their proponents’ habit of often ignoring or flouting community opposition—unites voters across the political spectrum, reports The Energy Mix.

The latest poll for Heatmap showed public support for data centres collapsing, with 75% of respondents now saying they oppose development in their communities. The poll results arrived as the Alberta Utility Commission (AUC) disallowed a $1-billion, 1,400-megawatt gas power plant that would have powered a data centre in the rural community of Olds, where 900 people out of a population of about 9,500 were given standing to speaking out on the project.

 

Switzerland seeks additional CA$1.6 billion for air defence

The Swiss government is seeking parliamentary approval to allocate an additional 970 million Swiss francs (CA$1.6 billion) for air defence under the 2026 budget, citing a heightened threat situation and long delivery times for defence equipment, reports Defensenews.com.

The tight international arms markets with “sharply” higher demand means production capacities are fully booked for years to come, with delivery times lengthening, according to the government. Arms makers also increasingly demand “substantial” down payments, and failure to meet those demands could delay urgent procurements by several years, the government said.

*1.00 CHF = 1.726 CAD

Lula is considered to be Brazil’s presidential frontrunner

Luiz Inácio Lula da Silva is broadly considered the favourite to beat right-wing challenger Flávio Bolsonaro, whose campaign has been marred by a feud with his stepmother and links to a banker at the center of a massive financial fraud probe, according to Daniel Carvalho, Martha Beck, and Vinicius Andrade at Bloomberg.

Influential centrist lawmakers are endorsing him. Betting markets give Lula better than 60% odds of reelection, while investors have begun selling off Brazilian assets amid worries about his willingness to tackle ballooning deficits and debt.

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Allies forge alternate partnerships, realizing they can no longer depend on the U.S.

The only remaining U.S. aircraft carrier patrolling the Pacific departed Asia through Singapore last week en route to the Middle East, marking the latest step in a steady drawdown of American military assets across the region, reports Michael Wilner for the LA Times.

The Trump administration’s snub of South Korea has America’s allies in Asia rethinking how much they can depend on the U.S. — and looking to each other to reduce their reliance on Washington, reports Phelim Kine at Politico.

Trump said this week he is cutting back joint military exercises with South Korea, and announced Wednesday that he will meet with North Korean leader Kim Jong Un later this year. That is pushing countries in Asia to accelerate their defence spending and forge alternate partnerships, according to Asian diplomats and others familiar with discussions among regional governments.

Americans think tariffs will tear Canada apart. The evidence proves them wrong

“As long as the president retains sole discretionary authority to impose tariffs, the threat remains. Remember that Canada had an agreement, incorporated into the current USMCA and ratified by Congress, to restrain the use of Section 232 tariffs. The failure of that agreement is a precedent to guide all future dealings with the U.S., including those conducted after Mr. Trump leaves office.”

“The lesson for Canada now facing a U.S. armed with “divide and conquer tariffs” is that Canadian solidarity, while strong, is not something governments can simply assume; it must be built by informing Canadians of what is at stake,” write and at the Globe and Mail.

“Canadians seem willing to accept that one province may sometimes have to give something up for another, but they want to know the bargain is reciprocal: who is carrying the cost, who benefits, and what comes back to the province making the concession. Without that clarity, what is meant to look like a national strategy can quickly feel like one province being asked to take one for the team. That’s a guaranteed winning proposition for a U.S. administration hostile to Canada.”

Prime Minister Carney tells the first ministers that Canada is looking for ‘greatest possible’ access to U.S. market.

Prime Minister Carney briefed all 13 provincial and territorial premiers on the state of Canada-U.S. trade talks.

Some details are starting to spill out:

  • Prime Minister Mark Carney has asked the provinces to return American alcohol to store shelves, and to not specifically exclude the U.S. from their procurement policies, according to Nova Scotia Premier Tim Houston.
  • A source with knowledge of the forthcoming agreement told the CBC that U.S. tariffs on Canadian steel and aluminum are being lowered from 50% to 25%, and that Canadian officials are aiming to complete the deal by Friday.
  • Quebec Premier Christine Fréchette told reporters “I don’t have sufficient information in order to decide if it’s a good agreement or not.”
  • Premiers were asked not to exclude U.S. from procurement policies

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