POLITICS

Canada’s Inflation Eases Slightly, but Core Pressures Remain

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In August 2025, Canada’s Consumer Price Index (CPI) rose 1.9 per cent year over year, up from 1.7 per cent in July. This was slightly below analyst expectations. Declining gasoline prices helped moderate the headline rate, but food and shelter costs continued to drive inflation higher.

Gasoline pulls inflation lower

Gasoline prices fell compared to last year, softening overall inflation. Excluding gasoline, CPI stood at 2.4 per cent year over year, highlighting the persistence of underlying pressures once volatile energy prices are excluded.

Food and shelter drive price growth

Food inflation rose around 3.4–3.5 per cent, with meat prices leading the increase. Shelter costs also climbed by roughly 2.6 per cent, adding to household budget strains. Together, these categories remain the biggest contributors to inflation.

Core inflation pressures persist

Core inflation, which strips out volatile categories like energy, showed ongoing strength. This suggests that while headline inflation is easing, deeper affordability pressures are not cooling quickly, posing challenges for households and policymakers alike.

 

POLITICS

Why U.S.-Canada Trade Friction Is Escalating Ahead of Upcoming Tariff Deadlines

U.S. President Donald Trump shared a hockey cartoon mocking Prime Minister Mark Carney as trade tariffs on $28 billion in American goods near enforcement.

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Escalating Trade Strain and Social Media Jabs

Tensions between the United States and Canada continue to build on social media ahead of major trade enforcement dates. On Sunday, U.S. President Donald Trump published a cartoon on Truth Social depicting himself in a USA Hockey jersey standing over Prime Minister Mark Carney, who was shown on the ice wearing a Hockey Canada sweater. Accompanying the image was a remark from Trump directed at Carney stating, “Get up, governor.”

Repeated Statehood References and Currency Criticisms

The post marks the latest instance of Trump using the title “governor” for a Canadian prime minister, alongside his repeated suggestions that Canada should become the 51st U.S. state. Trump previously applied the same label to former prime minister Justin Trudeau after taking office in January 2025. In the same Truth Social post on Sunday, Trump criticized trade conditions, stating, “Canada’s (currency) Dollar imbalance with the U.S. is unacceptable,” and added, “It has been that way for years – but no longer!” He provided no additional details regarding the statement, and Carney had offered no response as of Sunday night.

Imminent Levies and Tariff Background

The online exchanges coincide with upcoming trade measures set to take effect Tuesday, when Canada will apply tariffs targeting nearly $28 billion in American products across more than 700 items. These upcoming Canadian levies follow 50 per cent tariffs imposed on Canada by the Trump administration in late August, which were implemented after bilateral trade discussions collapsed.

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LOCAL

Quebec Pause Campaign Trail for Cabinet Talks as U.S. Tariffs Loom

Quebec Premier Christine Fréchette pauses her campaign for a virtual cabinet meeting ahead of retaliatory U.S. tariffs, drawing opposition backlash.

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Cabinet Meeting Called Ahead of Trade Deadline

As Canada prepares to implement retaliatory duties ranging from 15 to 50 per cent on U.S. goods, Quebec Premier Christine Fréchette has temporarily paused her campaign duties. Her office confirmed Sunday that a virtual cabinet meeting is scheduled for Monday at 6 p.m., though the exact agenda remains undisclosed. The impending Canadian tariffs target items such as dairy, steel, copper, and select beauty products in response to U.S. President Donald Trump’s 50 per cent tariffs on $28 billion worth of Canadian goods, which cover products from honey to hockey sticks.

Opposition Leaders Fire Back Over Timing

Political rivals quickly condemned the timing of the meeting during the provincial election campaign. Quebec Liberal Leader Charles Milliard characterized the gathering as a political performance during a stop in Gatineau, arguing that the CAQ government has failed to adequately prepare local businesses after eight years in office. In Pont-Rouge, Quebec Conservative Leader Éric Duhaime described the session as a marketing attempt to distract from the government’s record. Meanwhile, Parti Québécois Leader Paul St-Pierre Plamondon accused Fréchette of using fear and a “Trump bogeyman” to divert attention from key issues, while also asking Prime Minister Mark Carney to keep all party leaders directly informed if further U.S. measures occur.

Local Demands and National Context

From Québec solidaire, co-spokesperson Ruba Ghazal noted that Fréchette is acting within her authority as premier, but questioned what concrete tariff relief or proposals she has planned for workers. The provincial developments coincide with federal preparations, where officials briefed the advisory committee on Canada-U.S. economic relations regarding planned supports for businesses and workers, emphasizing a unified Team Canada approach. Interrupting a political campaign for federal-U.S. trade friction is not unprecedented; Prime Minister Mark Carney previously paused his campaign three times during the 2025 federal election to fulfill his official duties as trade tensions with the U.S. escalated.

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NATIONAL STORIES

Upcoming Canadian Tariffs Loom as Trump Targets Mark Carney in Social Media Post

Canada prepares $28B in tariffs on U.S. goods as Donald Trump mocks Prime Minister Mark Carney in a social media post, heightening trade tensions.

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Trade Tensions Escalate Ahead of Canadian Levies

Nearly $28 billion worth of American goods are set to face Canadian tariffs targeting over 700 products starting Tuesday. The retaliatory measure follows a breakdown in trade negotiations that led the Trump administration to impose 50 per cent tariffs on Canada in late August.

Social Media Mockery and Currency Complaints

Against the backdrop of the impending trade deadline, U.S. President Donald Trump shared a cartoon image on Truth Social on Sunday depicting himself in a USA Hockey jersey standing over Prime Minister Mark Carney, who was shown sprawled on the ice in a Hockey Canada sweater. In the post, Trump told Carney, “Get up, governor.”

Accompanying the image, Trump wrote that “Canada’s (currency) Dollar imbalance with the U.S. is unacceptable,” adding, “It has been that way for years – but no longer!” Trump provided no further elaboration regarding the comment. As of Sunday night, Carney had not responded to the statement.

Repeated Use of ‘Governor’ Framing

The depiction marks the latest instance of Trump referring to a Canadian prime minister as “governor,” reflecting his repeated suggestions that Canada should become the 51st American state. Following his inauguration in January 2025, Trump similarly addressed former prime minister Justin Trudeau as “Governor Trudeau.”

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