Here are five things you need to know this morning:
Export taxes on the table: Canada is considering putting export taxes on major commodities like oil, uranium and potash if incoming U.S. president Donald Trump makes good on his threat of a 25 per cent tariff on Canadian imports. That’s according to Bloomberg, who, citing officials close to the PMO, says the moves would only be used as a last resort. Retaliatory tariffs on U.S. made goods and export controls on certain Canadian made products would likely come first. But export taxes would drive up costs for U.S. consumers, something which would likely get the attention of the U.S. president.
Quebec, Nfld. hammer out energy deal: The provinces of Quebec and Newfoundland & Labrador have found a middle ground on a new contract to supply electricity, potentially bringing an end to what has been a prickly political issue. The two provinces have agreed on a new 50-year contract that will see Churchill Falls Labrador Corp., which already produces about 15 per cent of Quebec’s daily supply, ramp up its output via a new facility. Quebec will buy the power for 6 cents per kilowatt-hour. That’s a significant increase from the current deal, struck in the 1960s, whereby Quebec got power for as little as 0.2 cents. Market prices have skyrocketed since then — Quebec exports output to the U.S. for more than 10 cents — and Churchill has repeatedly tried to renegotiate the deal that was locked in until 2041.
Businesses souring on Canada Post: It’s not much of a surprise, but with many small businesses scrambling to find alternative shipping during the busy holiday season because of the Canada Post strike, the CFIB says nearly three quarter of its members plan to rely on Canada Post less in the future, having lost faith. In a release, the group says the results are “alarming” for the mail carrier and the union, since it implies they have lost the support of their most loyal customers. The CFIB estimates the economic impact on its members by the ongoing strike has topped $1.6 billion.
Feds divest Air Canada stake: The federal government has sold its stake in Air Canada this week, CTV News has confirmed. As first reported by the Globe and Mail, the government sold its roughly six per cent stake in the airline at market price this week, for around $25 per share. That’s slightly more than what the shares were going for back in 2021 when the government stepped in to backstop the carrier and others.
Creditors OK landmark $32B smoking lawsuit: Creditors have voted to approve the landmark $32 billion lawsuit against Big Tobacco to mitigate the impact of decades of smoking. While the news doesn’t come as a surprise, it is one step closer to the funds actually being disbursed. The next date is a court hearing at the end of January to finalize the deal.