Here are five things you need to know this morning
High stakes as Carney meets with Trump: Prime Minister Mark Carney is in Washington today for a crucial meeting with U.S. President Donald Trump. As Bloomberg News notes, Carney has tried to lower expectations for the meeting, saying he foresees “difficult but constructive” talks and no immediate solution to simmering trade tensions. But it will nevertheless be a test of his ability to start fresh in the relationship with Trump, who displayed open disdain for Carney’s predecessor, Justin Trudeau. Carney has said his goal with Trump is to move beyond talks on specific sectors and deadlines and into a more “comprehensive” discussion on the security and economic relationship between Canada and the U.S. He’s also said Canada can afford to wait for the right deal and won’t just accept the first thing Trump puts on the table. BNN Bloomberg will have live reports throughout the day from CTV News and Bloomberg reporters, as well as expert analysis.
EU prepares tariff retaliation: Meanwhile, Bloomberg News is reporting the European Union plans to hit about €100 billion in U.S. goods with additional tariffs if ongoing trade talks fail to yield a satisfactory result. The report says the proposed retaliatory measures will be shared with member states as early as Wednesday and consultations will last for a month before the list is finalized. Negotiations between the EU and U.S., which began in earnest last month, have made scant progress and the expectation is that the bulk of the American tariffs will remain in place.
Smith puts Ottawa on notice: Alberta Premier Danielle Smith says she’s appointing a group to negotiate with the federal government on removing laws that restrict energy production… and a referendum on the province separating from Canada may be on the ballot as soon as next year. In a speech late yesterday, Smith said Alberta will seek an agreement that guarantees energy transportation corridors to the Atlantic, Pacific and Arctic coasts so that the province’s resources can get to global markets. Her administration also wants Ottawa to repeal laws that regulate industrial carbon emissions and that require Canada to move to a net zero electricity grid over time.
Ford pulls forecast: Shares of Ford traded down about two per cent in the pre-market, after the automaker pulled its financial guidance for this year. Ford says it expects a US$2.5 billion hit from Trump’s auto tariffs. Despite beating first quarter expectations, Ford has struggled with losses on electric vehicles that could top $5.5 billion this year. Ford’s CEO says the company won’t increase the prices of its vehicles until he sees how auto peers respond to tariffs.
Toronto real estate slump: There is fresh evidence this morning that economic uncertainty is having an impact on Canada’s real estate market. Home sales in April in the Toronto area plunged more than 23 per cent from the same month last year. The benchmark price of a home in Canada’s largest city fell 5.4 per cent from a year earlier to $1.01 million, according to the Toronto Regional Real Estate Board. Meanwhile, listings are flooding the market, with more than 27,000 properties listed for sale in the city, a 54 per cent increase from a year earlier.
