Washington Wi$h Li$t: More Defence Spending for Some, Tariff Reprieve for Others
Your Look Ahead from Summa Strategies
- 8 minute read
The Latest
Top stories driving the news this week.
- Prime Minister Mark Carney will travel to Washington this evening in advance of his meeting with U.S. President Donald Trump Tuesday. The two leaders are expected to discuss shared priorities on the new economic and security relationship between Canada and the U.S., with some reports suggesting relief on steel and aluminum tariffs may be near. This will be Carney’s second visit to Washington since becoming prime minister.
- Meanwhile, back in Ottawa, the Department of Finance holds a technical briefing on the federal government’s “new approach to budgeting”, ahead of the federal budget set for November 4. This unusual pre-brief is expected to shed light on the new expenditure categorization method Carney proposed during this year’s election campaign, which would separate capital and operating spending within the government.
- The federal government unveiled the Defence Investment Agency (DIA) last Thursday, fulfilling a campaign promise to create a stand-alone entity responsible for defence procurement. The agency is tasked with streamlining approvals particularly for large defence procurement projects, prioritizing off the shelf solutions in an attempt to acquire platforms and equipment faster.
- Conservative Party of Canada leader Pierre Poilievre has indicated that his party will not support C-2, the government’s border bill, without significant amendments. He is calling on the government to remove the parts of the bill that critics say infringe on Canadians’ privacy and freedoms, or to table a new piece of legislation altogether.
- Parliament is in session this week before heading home to their constituencies for the week of October 13-17. They return to Ottawa Monday, October 20.
In the House
Key Green Chamber business set to play out.
- Bill C-2, Strong Borders Act, currently sits at second reading.
- Bill C-3, An Act to amend the Citizenship Act (2025) currently sits at second reading.
- Bill C-4, Making Life More Affordable for Canadians Act is currently under consideration in committee.
- Bill C-8, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts is currently under consideration at the Standing Committee on Public Safety and National Security.
- Bill C-9, Combatting Hate Act, is currently under consideration in committee.
- According to the Thursday Question, today and Wednesday will see Bill C-11 (military justice) being debated at second reading and Bill C-10 (Modern Treaty Implementation) being debated at second reading tomorrow. This Thursday will be the sixth allotted day.
Committee Updates
- CITT will be meeting today to discuss Canada and the Forthcoming CUSMA Review.
- CIMM will be meeting tomorrow to do a clause-by-clause consideration of Bill C-3 An Act to amend the Citizenship Act (2025).
- CHPC will be meeting today and Wednesday to study the Effects of Technological Advances in Artificial Intelligence on the Creative Industries.
- ENVI will be meeting today to discuss the Effectiveness, Potential Improvements and Capability of Canada’s 2030 Emissions Reduction Plan.
- ETHI will have the Privacy Commissioner and Lobbying Commissioner give a briefing to the committee later today.
- FAEE will be meeting tomorrow to discuss Canada’s Arctic Strategy.
- FEWO will be meeting today and Wednesday to discuss Gender-Based Violence and Femicides.
- FINA will be meeting today to discuss the 2025-2026 Budgetary Cycle. Minister Champagne will be appearing as a witness (he will also hold a media availability after his appearance).
- HESA will be meeting tomorrow to discuss Women’s Health.
- HUMA will be meeting tomorrow to discuss Youth Employment in Canada.
- INDU will be meeting today to discuss Canada’s Underlying Productivity Gaps and Capital Outflow.
- PACP will be meeting tomorrow to discuss Report 2, Delivering Canada’s Future Fighter Jet Capability, of the 2025 Reports 1 to 4 of the Auditor General of Canada.
- PROC will hear from witnesses in their study on “Actions of the “Longest Ballot Committee” in Recent Canadian Elections tomorrow.
- TRAN will be meeting tomorrow to discuss the Changing Landscape of Truck Drivers in Canada.
In the Senate
Stay informed on events in the Upper Chamber.
- Bill S-2, An Act to amend the Indian Act (new registration entitlements is currently at consideration in committee
- Bill S-201, National Framework on Sickle Cell Disease Act is currently under consideration in committee.
- Bill S-202, An Act to amend the Food and Drugs Act (warning label on alcoholic beverages), is currently under consideration in committee.
- Bill S-203, Alcoholic Beverage Promotion Prohibition Act, currently sits at second reading.
- Bill S-209, An Act to restrict young persons’ online access to pornographic material is currently under consideration in committee.
Committee Updates
- AGFO will be meeting tomorrow and Thursday to examine and report on the growing issue of wildfires in Canada and the consequential effects that wildfires have on forestry and agriculture industries, as well as rural and Indigenous communities, throughout the country.
- APPA will be meeting today and tomorrow to discuss Bill S-2, An Act to amend the Indian Act (new registration entitlements).
- BANC will be meeting tomorrow and Wednesday to study matters relating to banking, trade and the economy generally.
- LCJC will continue its study on Bill S-209 with meetings scheduled for this Wednesday and Thursday.
- NFFN will be meeting tomorrow and Wednesday to study and report on matters relating to federal estimates generally and other financial matters.
- SOCI will be meeting tomorrow to discuss Bill S-201, An Act respecting a national framework on sickle cell disease. On Wednesday the committee will be studying Bill S-202, An Act to amend the Food and Drugs Act (warning label on alcoholic beverages).
In Case You Missed It
Your crib notes for last week’s top stories.
- Canada’s Secretary of State for Defence Procurement Stephen Fuhr has indicated that the government has no new timeline to complete its review of the F-35 deal. This announcement comes after the government initially set a late-summer deadline to conclude its review of the F-35 acquisition.
- Canadian Foreign Affairs Minister Anita Anand announced that the G7 Foreign Ministers’ Meeting will take place in the Niagara Region from November 11-12. This will be the second time this year that Canada has hosted a foreign affairs ministers meeting under the G7 presidency.
- Canada Post’s latest offer to the union representing postal workers includes a number of measures from its last offer except a signing bonus due to the corporation’s declining financial circumstance. This comes following Canada Post’s announcement to pivot away from door-to-door services and toward community mailbox services.
- Last Friday, Minister of Energy and Natural Resources Tim Hodgson announced a $22 million investment awarded to 8 projects to help accelerate battery innovation and production across the nation.
- Last Wednesday, International Longshore and Warehouse Union President Rob Ashton announced his leadership bid for the federal NDP. This makes him the third contestant to join the leadership race after Heather McPherson and Avi Lewis.
- Prime Minister Mark Carney welcomed the U.S. President Donald Trump’s new Middle East Plan which intends to place the Gaza Strip under an international security force. U.S. Secretary of State Marco Rubio has also asked his Canadian counterpart to onboard other nations to support this deal.
- Last Monday, Ontario-based Algoma Steel was the recipient of $500 million in federal and provincial loan assistance to help the company deal with the impact of U.S. tariffs. $400 million is coming from the Large Enterprise Tariff Loan Program and the remainder of this funding is coming from the province of Ontario.
- In addition to imposing additional tariffs on Canadian softwood lumber and furniture, U.S. President Donald Trump also renewed comments last week about Canada becoming the 51st state.
Provincial Updates
A look at the top news across the country.
- While Premier Danielle Smith has put forward a pipeline proposal that would run through northwest B.C., Marilyn Slett, elected chief councillor of the Heiltsuk Tribal Council said that B.C. First Nations will never accept this proposal. Premier David Eby was also strongly opposed to the plan, suggesting it would impact existing projects.
- After former BC Conservative MLA Eleanor Sturko was ousted from caucus, the BC Conservatives have reshuffled their shadow cabinet. The most notable shift includes John Rustad taking on the role as both party leader and Indigenous relations and reconciliation critic.
- After talks broke down between the union and the government, the British Columbia General Employees Union (BCGEU) escalated job action last Friday which saw several alcohol and cannabis workers joining the picket line. Job action is expected to increase this week as MLAs return to the legislature for the fall session.
- Premier Smith is expected to travel to Ottawa on Tuesday for a series of meetings in the capital.
- Last week, Smith put forward a pipeline proposal with the province as a proponent for consideration by the Major Projects Office. The plan would advance a bitumen pipeline from Alberta to northwest B.C. The province is ready to commit $14 million to the proposal and lead the project where private industry cannot.
- Police in Manitoba are investigating a fire that took place at the constituency office of Families Minister Nahanni Fontaine that took place last Tuesday.
- In the Manitoba legislature the topic of political violence is at the top of the agenda following vandalism and security concerns at local constituency offices.
- Saskatchewan First Nations University president Jacqueline Ottmann was fired from her post last week following a three month investigation probing numerous allegations including nepotism and mismanagement.
- Over the weekend, Ontario Premier Doug Ford doubled down on his plan to remove Crown Royal off LCBO’s shelves if the company moves forward with moving its production out of Ontario.
- American auto manufacturer GM announced that it will be moving its production from its Oshawa plant to Fort Wayne, Indiana. This move has added 250 jobs at GM’s Fort Wayne plant.
- As of last Wednesday, Ontario has boosted its minimum wage by $0.40 to $17.60 per hour to help families keep pace with the rising cost-of-living.
- Ontario has released draft regulations for Special Economic Zones to fast-track strategic projects, attract investment, and strengthen economic resilience. The zones aim to balance faster approvals with environmental protections and Indigenous economic reconciliation.
- A bombshell Auditor General report auditing the Skills Development Fund found that Ontario political staffers have sidestepped bureaucratic advice to hand out $750 million in grants to a growing list of companies that donate to the Ontario PC party through the Ontario Skill Development Fund.
- Onatrio’s Education Minister has indicated that it is unlikely that Ontario will get $10 a day child care from the federal government next year.
- Amidst the Quebec government’s imposition of Bill 106 (Quebec bill on physician accountability), specialists are accepting mediation despite the ongoing protest since September 15 which has halted the teaching of medical students.
- While Quebec’s legislature opens, the future for Premier François Legault looks grim as he faces falling popularity and credibility issues. He faces an uphill battle heading into the 2026 election against a strong Parti Quebecois.
- Former Quebec liberal cabinet minister Martin Coiteaux is joining the Quebec Liberals as a policy commissioner to help develop ideas and shape the 2026 election cycle.
- The Nova Scotia legislature had a flurry of late night debate to quickly pass legislation through the house, the bulk of which focused on Bill 127, an ominous bill that aims to support domestic violence survivors and deal with protestors blocking logging roads.
- New Brunswick Power is seeking to hike electricity rates by 4.75% as the CEO of public utility states they need more money to operate reliably. NB Power will seek future hikes of 6.5% in both 2027 and 2028 for all of its customers.
- While the Newfoundland municipal elections have concluded with the exception of St. John’s, it may have been a temporary distraction from the fact that Newfoundland currently has the highest per-capita debt in the country which will be inherited in the October 14 general election by the next provincial government.
- Long time MLA and PEI’s Housing Minister Steven Myers announced his resignation from his roles in government. This announcement will force a cabinet shuffle, and requires a by-election to be called within six months to fill the Georgetown-Pownal seat.
What We’re Watching
Find out what issues Summa consultants are tracking and why they matter.
Minister of Industry Melanie Joly opened the Competition Bureau of Canada’s 2025 Competition Summit last week, gathering with domestic and international experts to discuss strategies to help Canadians benefit from a more competitive economic environment. In her remarks, Joly stated that the government will take a “hawkish approach” to competition – potentially welcome news for many Canadians who continue to cite affordability and cost of living as their top issue of concern. Ahead of Budget 2025, concentration in key industries like grocery, telecommunications and transportation remain a preoccupation for the federal government. The task of increasing competition within the Canadian market is particularly challenging against a backdrop of ongoing tariffs and trade challenges, as well as the forthcoming CUSMA review in 2026 which is likely to bring more economic uncertainty. Keeping life affordable for Canadian families will be a critical task for the Carney Liberals if they hope to maintain their lead over the Conservatives.
Canada-U.S. trade negotiations remain tense but active, with Canada-U.S. Trade Minister Dominic LeBlanc insisting that the federal government is still holding out hope the two countries can reach a deal. LeBlanc has also stated that, unlike other countries who have recently established trade deals with the Trump administration, Canada will not accept any agreement that imposes a baseline tariff. Meanwhile, Trump has doubled down on his tariff approach, having announced new levies on lumber, kitchen cabinets, vanities and other furniture and upholstered products just last week. When Prime Minister Carney travels to meet President Trump in Washington on October 7, he will need to balance the pressure to see relief in key sectors impacted by tariffs, with the view of many Canadians that a good deal is better than a fast one. This meeting may well set the tone for the next phase of negotiations and determine whether a trade framework can be salvaged before the start of the broader CUSMA review.
Prime Minister Mark Carney has created a new Defence Investment Agency (DIA), with the intent of streamlining major defence procurements and better meeting operational needs. The new initiative comes after decades of heavily-criticized military procurement projects, marked by cost overruns and delays, which have left Canadian Armed Forces members with outdated equipment. The DIA will be headed by Doug Guzman, a former executive at Goldman Sachs, and will report to Stephen Fuhr, Secretary of State for Defence Procurement. The DIA will primarily focus on large-scale procurements valued at $100 million or more, with smaller projects flowing through a routine process (which may also see acceleration in the future). With the Carney government having committed to better align Canada’s military with NATO standards, the DIA could finally crack the country’s broken procurement system. If not, it may join a long historical list of well-intentioned bureaucratic bungles.
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