Freeland Exits Cabinet with Tariffs and Budget 2025 on Horizon
Your Look Ahead from Summa Strategies
- 7 minute read
The Latest
Top stories driving the news this week.
- Finance Minister François-Philippe Champagne announced that the federal government will table Budget 2025 on November 4th.
- Prime Minister Mark Carney is currently attending the United Nations General Assembly in New York City. He arrived on September 21st and will depart on September 24th.
- On Sunday, Prime Minister Carney, along with the leaders of Australia and the United Kingdom, formally recognized the State of Palestine. In his announcement, Carney said that Canada remains committed to a two-state solution between Israel and a sovereign Palestine in peace and security.
- Foreign Affairs Minister Anita Anand will address the assembly on Canada’s behalf on September 29th.
- Carney and Mexican President Claudia Sheinbaum Pardo signed a pact to deepen economic and security ties as negotiations loom on CUSMA. This comes as the federal government announced Friday it is launching public consultations on CUSMA ahead of next year’s review on the current trilateral trade pact with Mexico and the United States.
- Prime Minister Carney appointed his former principal secretary David Lametti as Canada’s next ambassador to the United Nations. Lametti was the former minister of justice and attorney general of Canada in Justin Trudeau’s cabinet.
- Last week, Chrystia Freeland resigned as the minister of transport and internal trade. Government House Leader Steven MacKinnon will assume the transport portfolio while Dominic LeBlanc will assume the internal trade portfolio
- Justice Minister Sean Fraser, on behalf of the federal government, filed a request to the Supreme Court of Canada urging the court to set limits on the notwithstanding clause–Section 33 of the Charter of Rights and Freedoms–in response to Québec invoking the clause following the passing of Bill 21–commonly referred to as the secularism law.
In the House
Key Green Chamber business set to play out.
- Justice Minister Sean Fraser tabled Bill C-9, which seeks to protect religious institutions from crimes of obstruction and intimidation. The bill also seeks to add additional offences of crimes committed with the motivation of hate and promotion of hate symbols.
- The government will also seek to table legislation focused on facilitating market expansion outside of Canada and building new housing units in the near future.
- Frank Caputo (CPC) tabled Bill C-225, which seeks to increase sanctions on those who commit assault or murder on an intimate partner. Conservatives also tabled a motion in the House seeking a “three strikes” law to revoke bail for repeat offenders.
- Bill C-2, Strong Borders Act, currently sits at second reading.
- Bill C-3, An Act to amend the Citizenship Act, currently sits at second reading.
- Bill C-4, Making Life More Affordable for Canadians Act, is currently at consideration in committee.
- Bill C-8, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts, currently sits at second reading.
Committee Updates
- SRSR will continue its study on the Impact of the Criteria for Awarding Federal Funding on Research Excellence in Canada on Monday morning.
- ENVI will hold a briefing with officials from the Department of the Environment on Monday morning
- CIIT will hear from Canadian trade officials and experts in their ongoing study on Canada’s Engagement in a Rules-Based International Trade and Investment System on Monday afternoon.
- OGGO will hold a briefing from the Auditor General of Canada regarding the June 2025 reports on Fighter Jet Capacity, Use of Federal Office Space and Contracts with GC Strategies on Tuesday morning.
- CIMM will hear from officials from the Department of Citizenship and Immigration in a new study on International Student Program and Study Permits.
In the Senate
Stay informed on events in the Upper Chamber.
- The Senate will resume sitting on Monday.
- The Senate will resume debate on Bill S-203, An Act to prohibit the promotion of alcoholic beverages.
Committee Updates
- BANC will meet regarding Bill S-1001, An Act to authorize Gore Mutual Insurance Company to apply to be continued as a body corporate under the laws of the Province of Québec, on Wednesday.
- LCJC will meet to discuss Bill S-228, An Act to amend the Criminal Code (sterilization procedures), on Tuesday.
- APPA will hear from Minister of Indigenous Services Mandy Gull-Masty on Wednesday, on Bill S-2, An Act to amend the Indian Act (new registration entitlements).
In Case You Missed It
Your crib notes for last week’s top stories.
- The Bank of Canada cut its benchmark key interest rate to 2.5 percent after three consecutive holds since March.
- Filmmaker and journalist Avi Lewis declared his candidacy for the federal NDP leadership race. Alberta MP Heather Macpherson (NDP) is listed as a registered leadership candidate with Elections Canada but has yet to officially announce her candidacy.
- Canada has received a 263% increase in asylum seekers–from the same period last year–crossing the border from New York to Québec as the United States increases its hard-line immigration approach.
- Canada Post is sending a new offer to the Canadian Union of Postal Workers in an attempt to reach an agreement.
- The federal government is closing applications on the Canada Greener Homes Loans program, which encourages homeowners to retrofit their properties through energy efficiency upgrades. Applications for the program will halt on October 1, 2025.
Provincial Updates
A look at the top news across the country.
- B.C. Premier David Eby travelled to Ottawa last week seeking to lobby the federal government to support additional nation-building projects in B.C. via the Major Projects Office.
- During his trip to Ottawa, Eby criticized the federal government for paying Atlantic Canada to build ferries but only offering B.C. a low-interest loan for the same purpose.
- Outgoing federal cabinet minister Chrystia Freeland has been called to testify before the Transportation committee over recent emails revealing her department had advanced notice that B.C. Ferries was planning to buy four new vessels from a Chinese shipyard.
- Alberta Premier Danielle Smith issued new mandate letters to four ministers on Wednesday.
- Smith and the Alberta government are planning to invoke the notwithstanding clause on three amendments to laws regarding transgender individuals.
- Saskatchewan Premier Scott Moe met with Mark Carney and canola industry leaders in Ottawa last week to discuss Canada’s trade dispute with China on canola tariffs.
- The Ontario government announced a new deal with the Ontario Medical Association that will increase compensation for physicians and new measures to encourage more to practise family medicine. Doctors will receive 7.3 per cent increase in compensation over the next three years.
- Ontario NDP Leader Marit Stiles received the support of 68% of Ontario New Democrats gathered at the party’s convention in Niagara Falls. While the result is notably better than the 57% vote that saw Bonnie Crombie step down as Liberal leader, it was a disappointing level of support for the Leader of the Official Opposition. Stiles announced she would stay on as leader, vowing to hold the Ford government to account while focusing on NDP priorities of “jobs, homes, public health care, lowering everyday costs (and) putting our kids first.”
- Ontario is projected to have the lowest economic growth in Canada due to business uncertainty from U.S. tariffs, according to a report by the Financial Accountability Office of Ontario.
- Thousands of public servants are protesting and seeking an exemption regarding the Ontario government’s return-to-office policy.
- Québec municipal elections officially began Friday, with candidates having until October 3 to submit their applications. The elections will take place on November 2.
- Maïté Blanchette Vézina left the CAQ and asked for Legault to reflect on his future as leader after she was left behind in the latest Cabinet shuffle.
- A provincial election in Newfoundland and Labrador was called last week with voters heading to the polls on October 14.
- Nova Scotia Premier Tim Houston indicated that his government will intervene against Nova Scotia Power’s proposed rate increase over the next two years. Houston has not elaborated on what measures he will take.
- The New Brunswick government launched a provincial task force of ministers and deputy ministers to address homelessness in the province. Homelessness in the province has increased by 210 per cent in the past four years, according to government officials.
What We’re Watching
Find out what issues Summa consultants are tracking and why they matter.
Canada and China’s tariff dispute is a symptom of the chaotic state of global trade, a situation influenced by U.S.-China tensions and Canada’s push to invest in electric vehicles. Last year, Ottawa decided to mirror the Biden administration’s 100% tariffs on Chinese EVs, which triggered Beijing to retaliate against Canadian canola, including a 76% duty introduced last month. The timing was no coincidence as it was designed to put pressure on the Carney government ahead of the October 1 EV tariff renewal deadline. The tariff renewal is also creating an inter-provincial headache for Prime Minister Carney and Industry Minister Mélanie Joly, who confirmed the tariffs are under review. Saskatchewan Premier Scott Moe returned from a six-day China mission last week, urging relief for farmers but warning it’s “not as simple” as lifting EV tariffs. Days later, Ontario Premier Doug Ford demanded that the tariff be renewed. Canada’s decision on Chinese EV tariffs is a high-stakes moment for the Carney government, directly impacting its economic and security policies, federal-provincial relations, and its place in the U.S.-China rivalry.
Finance Minister François-Philippe Champagne announced that the Carney government will table its first budget on November 4. One week into the new parliamentary session, the Carney government’s priorities are clear: its budget will balance spending restraint with a new industrial strategy to support industries hurt by the trade war. Key to this are efforts to address housing shortages, advance infrastructure, and stimulate economic growth. PM Carney has already teased that there would be a larger deficit than last year’s $61.9 billion, which reflects the ambition of his agenda. The budget will also be the first to differentiate operating and capital spending, a plan the finance minister reiterated last week. Despite sharp criticism, Opposition Leader Pierre Poilievre has not ruled out Conservative support, and the Liberals will need at least one other party’s support to pass the budget.
In the past week, Mark Carney’s government underwent a major personnel change, with more expected on the horizon. On Tuesday, Chrystia Freeland announced her resignation as Minister of Transport and Internal Trade, taking on a new role as Canada’s Special Representative for the reconstruction of Ukraine. While she has not yet resigned her seat, the safe Liberal riding of University–Rosedale is expected to be vacated soon. Carney is also said to be considering diplomatic appointments for two other former Trudeau-era ministers, Jonathan Wilkinson and Bill Blair. These moves would give Carney three seats to recruit candidates that reflect his style, while also further differentiating his caucus from that of his predecessor, Justin Trudeau. The personnel changes in the Carney government are not just a political shuffle; they are a fundamental realignment of power and priorities. It is a clear signal that the old playbook is being rewritten.
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