Smoke from the wildfires in Ontario is blanketing parts of the U.S, creating a serious problem for Americans. President Donald Trump said Canada will be held responsible for the air pollution drifting into the U.S., adding he would “call the Prime Minister during the day to find out what they are going to do about it.”

In an interview with an avowed Canadian leftist, U.S. Ambassador to Canada Pete Hoekstra affirms President Trump’s latest tariff threat is the position of America and describes Trump’s comments as a call to action to address the issue of forest fires and smoke. Additionally, Hoekstra notes FIFA is currently evaluating air quality to determine their position on allowing the World Cup final match in New Jersey to continue. WATCH (Prompted):

.

(more…)

Previously, Mark Carney and the Canadian govt famously fired Air Canada’s CEO because he shamefully didn’t speak French. This week he hired American, Maia Johnson, as his Chief Operations Officer (COO), she also doesn’t speak French and the Canadians are perplexed.

Hired by Prime Minister Mark Carney, the role of Democrat party operative and former Michael Bloomberg associate, Maia Johnson, seems directly related to the strategy of leveraging U.S. Democrat resistance against the CUSMA (USMCA) termination.

[Note: Mark Carney and Michael Bloomberg connect through their banking and finance network with prior associations. This relationship also connects to U.K Mayor Andy Burnham who is likely to become the next U.K Prime Minister to replace Keir Starmer.]

Readers to CTH likely remember in 2018 former Prime Minister Justin Trudeau leveraged Democrat House Leader Nancy Pelosi to regain position in the USMCA negotiations (NAFTA elimination) with USTR Robert Lighthizer.

It appears that Carney is attempting a similar maneuver through the connections of Democrat operative Maia Johnson.

Specifically, because positioning American resistance to the CUSMA (USMCA) termination is a key part of the Carney strategy, a COO from U.S. Democrat politics is the best strategic approach. A Canadian in that role would be of far lesser value.

TORONTO SUN – […] This week, it was reported that Carney was promoting a woman unknown to most Canadians to the position of chief operating officer in the PMO.

It appears to be a first for Canada to have a COO in the PMO, but it’s who the woman is that is truly interesting.

(more…)

The issue was never really about Canada tolling; the real issue was about ‘cost overruns’ against the backdrop of how the tolling revenue was being used for repayment to the govt of Canada.  It’s a rather sticky situation.

The Canadian government backstopped the financing of the bridge construction.  The deal was that Canada would use tolling to pay the govt back and subsequent tolls would split 50/50 with U.S.  However, cost overruns made the Canadian payback a little less clear as the govt expected more revenue than originally proposed.  Sketchy.

[SOURCE]

The deal currently being revealed as a compromise includes an immediate 50/50 split where Canada gets 50 per cent of the toll profits — after operational expenses — and the other half will go to a U.S-run regional development project for a 15-year time frame.

According to Global News, “The agreement also requires the Windsor-Detroit Bridge Authority to consult the U.S. on any toll changes greater than 10 per cent, the source said, or if it’s looking to lower tolls below those of comparable regional averages.”  Additionally, in Politico “they will guarantee and ensure that we’re not pouring Chinese cars over that bridge.”

(more…)

The European auto industry is a case study on how short-sighted trade policy goals, results in consequences.

Previously, German auto companies like Volkswagen entered into trade agreements with China and began manufacturing their vehicles with immediate financial success in the market.  However, it did not take long for Chinese auto companies to reverse the engineering and begin to deliver the same quality vehicles at much lower prices.

The Chinese then stop purchasing the Volkswagen vehicles and purchase the cheaper version, while simultaneously begin exporting those same vehicles into the home market from where the technology originated.

Today, with a double-digit decline in production, Volkswagen announces they will cut almost half of their models due to diminished sales.

BLOOMBERG – BERLIN — Volkswagen reported weak sales numbers on Friday, a day after the giant German automaker announced plans to slash the number of models by nearly half as sales plunged, particularly in China.

The Wolfsburg, Germany-based company said group sales fell 8.6 per cent in the second quarter to just under 2.1 million vehicles, with sales in China alone plummeted by more than one-third.

(more…)

An interesting report from Bloomberg following a survey conducted by KPMG of Canadian manufacturers.  Keep in mind this is a survey of companies within Canada that do traditional manufacturing of products; this is not a survey of companies that assemble foreign goods for export – there is a substantial difference.

As noted within the report, approximately 10% of Canadian GDP comes from Canadian manufacturing.  Within that sector there are multiple companies now planning or considering moving out of Canada into the United States.

Many will claim the trigger for the consideration is based on the potential elimination of the USMCA (CUSMA) trade agreement, and there is truth to that aspect.  However, the systemic issues within Canada -including energy policy, regulation and corporate tax burdens- represent the larger problem; the termination of the USMCA is the straw that breaks their back.

The domestic hurdles to manufacturing, are the bigger issues that cannot be negotiated away in U.S-Canada trade agreements.  Specifically, the low-price and stable energy policies are the core consistencies that are no longer present in Canada; that fundamental cannot be easily fixed.

BLOOMBERG – […] KPMG Canada said on Tuesday that 42 per cent of Canadian manufacturing companies indicated they have or are considering moving production to the United States. Of those considering relocating, 77 per cent expect to make the transition within the next two years.

[…] the issues go beyond the trade situation though, with Canada needing to create a competitive environment for manufacturers to grow.

(more…)

President Trump held a bilateral meeting with NATO General Secretary Mark Rutte earlier today during the NATO Summit in Ankara, Turkey.

WATCH THIS ONE!

During the press availability President Trump noted the Memorandum of Understanding with Iran has been essentially nullified, and the U.S. is responding with 20:1 retaliatory military strike into Iran. Trump noted “they’re scum” when discussing the lies from the Iranian regime.

Moving to NATO, President Trump specifically called out the weak NATO members who stood by and did nothing while Iran was building nuclear threats. President Trump called out France, Germany and the U.K. specifically, with a strong condemnation of Spain for their political interference.

President Trump pulled no punches and further stated that all U.S. trade with Spain should be immediately discontinued as a consequence of their interference and lack of support for security goals and objectives. WATCH:

.

Do not skip this press availability.  President Trump speaks plainly about the geopolitical dynamics throughout the region and beyond.  This is a level of brutal honesty that will never be repeated in American politics.

(more…)

President Trump and Turkish President Recep Erdogan hold a bilateral meeting in Ankara, Turkey, ahead of the beginning of the NATO summit.   President Trump and President Erdogan exchanged pleasantries, appreciation and mutual respect in their introduction with the media.  Video Prompted to 01:45

The first question to President Trump was about selling F-35’s to Turkey.  President Trump notes the issue should not be controversial as Turkey is a NATO ally.  People who are concerned about F-35 sales, should publicly explain why a NATO member should be denied an allied weapon.

President Trump also noted there is a chemistry of honesty between himself and President Erdogan.  He said directly if the NATO summit were not being held in Ankara, there is a strong possibility President Trump would not have attended.  This positions Erdogan with strong respect as expressed by President Trump.

Again, President Trump outlines the specifics of why the European members of NATO are no longer reliable allies.  In a weird way this is the exact same long-term position of Turkey and explains the synergy between the two leaders on the issue.

(more…)

Both Toyota and Honda had previously warned the Canadian government that without the USMCA they would shift production from Canada to the U.S. to avoid tariffs and secure long-term manufacturing stability.  We presume a similar message was conveyed to Mexico.

Earlier today Toyota announced they were moving half of their Tacoma Truck production from Mexico to an expanded facility in Texas that will now encompass 5 million square feet in San Antonio.

(Bloomberg) — Toyota Motor Corp. is moving production of its popular Tacoma midsize truck from a plant in Mexico to San Antonio as part of a $3.6 billion investment in the Texas facility.

The Japanese carmaker will build a second production line in San Antonio, where it currently makes full-size pickups and SUVs, and add some 2,000 new jobs by 2030, it said Monday.

The shift, following Toyota’s pledge last year to spend $10 billion on its US manufacturing operations over the next decade, comes as talks between the US and Mexico to renew a North American free trade agreement have stalled. President Donald Trump, who has pressed Toyota to invest more in the US, let a July 1 deadline pass without a trade pact extension.

(more…)

FACT: It has been over 60-years since Canada purchased a submarine.  FACT: Canada has never built one.  FACT: Currently the Canadian military have ONE operable submarine out of a fleet of four used ones previously purchased. FACT: Canada recently proclaimed themselves as the North American defender of the Arctic.

Now, put all those facts in the overlay of the December 2024 meeting in Mar-a-Lago between President Trump and Canadian Prime Minister Justin Trudeau.  President Trump was demanding that Trudeau increase their NATO spending and develop a working Canadian military.

Someone recently asked in the comments section why I have an issue with Canada, specifically why a new level of distain for our Northern neighbors.  Quite simply, there is a level of lying that exceeds my tongue bite capacity; that level of deceit comes when fabricating lies is accompanied by pretending. The Canadian government is the worst type of political abuser.  They willfully pretend and simultaneously lie to the Canadian people. That’s the answer.

Today, the government of Canadian Prime Minister Mark Carney announce that German industrial shipbuilder TKMS will be awarded a contract for “up to 12 submarines” valued between $20 and $30 billion {source link}.  Now, let’s not pretend.

First, the submarine contract is intended to get Canada back into reasonable position on their NATO obligations.

In reality, it is quite remarkable to think about the Canadian nation with only one currently functional submarine. “Canada hasn’t purchased unused submarines since the 1960s, during the Cold War, and has never ordered anywhere near 12 at once. Canada currently owns four subs, all of which were purchased second-hand, and only one of which is typically operational.” {citation} Now, think about that Mar-a-Lago conversation again.

Second, Canada can’t build their own submarines?

(more…)

The media and Canadian government discussions around the U.S-Canada trade and economic relationship, specifically as they pertain to the USMCA (CUSMA) continue to be fascinating.

As we noted over a year ago, the expressed perception from the Canadian side was remarkably disconnected from the most likely scenario.

The level of entrenched disbelief that the U.S. could completely separate from a trilateral trade deal in favor of a bilateral replacement has been remarkable to watch.

However, for the first time today Canadian media began admitting to themselves the USMCA can technically be terminated within six months; albeit buried at the end of the article.

GLOBAL NEWS – […] “I’m not in a position to guarantee anything. These decisions are made at the White House. They are made by the president,” Hoekstra said.

His comments come just days after the Trump administration declined to extend the trilateral pact with Canada and Mexico for a new 16-year term, citing what the U.S. calls “shortcomings” and “trade deficits.” Mexico and Canada both publicly pushed for a renewal.

U.S. President Donald Trump suggested last month that the U.S. is “better without” CUSMA, and that he’d even prefer to see it “terminated.”

When asked by Global News, Hoekstra would not say if the administration is considering ripping up the deal, which can be done by any party with six months’ formal notice. 

(more…)