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Welcome to Canada Playbook.
In today's edition:
→ Some dish on CHRYSTIA FREELAND's top-tier backyard bash.
→ The voice of the Big Three automakers has an ELON MUSK-sized warning.
→ At Stampede, DOUG FORD blames Trudeau for the interprovincial bad times.
Trade war
GRILL BOSS — The hottest political ticket on Independence Day wasn't to the U.S. ambassador to Canada's residence — but rather a cramped backyard barbecue five-ish hours west of Parliament Hill.
While PETE HOEKSTRA was preoccupied with the crowd size at his embassy party in Ottawa, Transport and Internal Trade Minister CHRYSTIA FREELAND was at home in Toronto, hosting the A-team that's working to soften the blow of DONALD TRUMP's trade war.
— Missing at Hoekstra's shindig: Political heavyweights. The crowd featured no former PMs, premiers or Cabinet ministers.
— Found at Freeland's barbecue: Canada-U.S. Trade Minister DOMINIC LEBLANC, former PM JEAN CHRÉTIEN, Ontario Premier DOUG FORD, Nova Scotia Premier TIM HOUSTON, Prince Edward Island Premier ROB LANTZ and Toronto Mayor OLIVIA CHOW.
— On the menu in Toronto: Alberta hamburgers and Quebec tourtière.
— Turning up the heat: Freeland, who has a knack for getting under the president's skin, has been arguing that tearing down Canada's internal trade barriers is the country's 'best answer to Donald Trump.'
So she threw a barbecue for those trying to drive that work — including Chrétien, who has been helping unite the political class behind the 'Team Canada' effort.
— Trade policy on a bun: 'The premiers, ministers, senators, MPs and the mayor reflected on what we have all accomplished on free trade in Canada, and talked about the work ahead and the need to keep the momentum going,' Freeland's office said to Playbook.
Earlier in the day, Freeland hosted a roundtable in Toronto with CIBC economist AVERY SHENFELD and government adviser RYAN MANUCHA, who both joined the backyard gathering.
— Backyard diplomacy: As Playbook previously reported, the minister likes to gather people in her Toronto home where she often cooks dinner herself. Past guests have included PAUL GROD, BRIAN CLOW, PREM WATSA and MARK CARNEY — before he was PM. She once served up roast beef for former U.S. Trade Representative ROBERT LIGHTHIZER.
— Torching trade barriers: On June 26, Parliament passed the One Canadian Economy Act, which removed federal barriers to internal trade and labor mobility.
— But, but, but: The ability to dismantle remaining barriers is up to the provinces. Multiple provinces have introduced their own bill to free up trade, including Ontario, Nova Scotia, British Columbia, Quebec, Manitoba and P.E.I.
And on Monday, Ford and Alberta Premier DANIELLE SMITH signed an MOU to get Ontario's critical minerals and Western Canada's oil and gas to new markets.
— Work to do: Freeland will meet today in Quebec City with the Committee on Internal Trade.
Northwest Territories Industry Minister CAITLIN CLEVELAND, the committee's chair, will join Quebec's Economy Minister CHRISTOPHER SKEETE at a press conference on the group's progress.
For your radar
BLAME ELON — BRIAN KINGSTON insists Canada's EV mandate should be scrapped — and he has data points to bolster his case.
The president and CEO of the Canadian Vehicle Manufacturers' Association says declining sales is a big one: 8.7 percent of vehicle sales in May, with the market on track to fall just shy of 10 percent this year.
But here's another biggie.
— It's making ELON MUSK richer: The Trudeau government policy aims to ban new combustion engine cars by 2035, forcing traditional automakers to sell more EVs — or else buy credits from those who have.
Kingston represents the Big Three automakers. But there's just one automaker in a position to claim EV credits, Kingston tells Playbook. 'This regulation will directly benefit Tesla and Elon Musk. That makes no sense,' he says.
Kingston says the cost of having to buy credits is essentially a trade secret.
— Why Tesla is profiting: The EV mandate requires automakers to meet a sales quota for EVs, and if they fall short, they are required to purchase credits from other automakers that exceed their EV sales quota. Tesla is the only automaker in Canada that has a surplus of credits, says Kingston, and is in a position to sell them 'because all they sell is electric vehicles.'
— But consider this: 'In the first quarter of 2025, Tesla booked over $400 million in regulatory credits — the majority of that driven out of North American policies.' Some estimates peg Tesla's 2025 credit level almost 50 percent higher.
— Why it matters: After ditching a controversial digital services tax, Prime Minister MARK CARNEY's government is facing pressure to scrap the EV mandate as part of bargaining with President DONALD TRUMP toward a new economic and security agreement.
— Not so fast: Clean Energy Canada, a B.C. think tank, has advised Carney to retool the EV mandate to help the auto sector 'weather this temporary storm' of slumping EV sales.
LISTEN UP, OTTAWA
BLAME JUSTIN — Ontario Premier DOUG FORD donned a big fat belt buckle gifted to him at the Calgary Stampede by Alberta's DANIELLE SMITH as they inked an energy and infrastructure pact — and then he took aim at JUSTIN TRUDEAU.
'For far too long — for 10 years under Prime Minister Trudeau — [provinces] were treated terribly. The West was treated terribly, Saskatchewan and Alberta. And as I said in our meeting, and you heard it, Premier Smith, we got to start showing respect,' said Ford.
— What's he talkin' 'bout?: Ford was blaming red tape, regulations, and what some see as an unnecessarily long approval process, for the delays in building big projects such as a proposed deepwater port on Northern Ontario's James Bay that the premiers want Prime Minister CARNEY to fast-track.
— All talk, no walk, no ball: A reporter challenged Ford over his faith in Carney, asking whether the PM 'is actually going to play ball, or is he just talking the talk?'
The premier blasted back.
'Prime Minister Carney is no Justin Trudeau,' Ford said. 'He's run massive, multi-billion dollar businesses, and he's bringing a business approach to the federal government that hasn't had that approach in the last 10 years. He wants to get things going. He comes from Alberta.'
THE ROOMS THAT MATTER
— Procurement Ombudsman ALEXANDER JEGLIC will hold a 10 a.m. presser in the National Press Theatre to discuss his new report on the foundational changes he says are needed in federal procurement.
— Toronto Mayor OLIVIA CHOW is in Dublin, Ireland as part of her overseas trade mission. Chow has meetings on the books with the Ireland-Canada Business Association, Screen Producers Ireland, Lord Mayor of Dublin RAY MCADAM and Irish film and television studios. She departs for London in the evening.
— The Caribbean Community wraps up its heads of government meeting in Jamaica.
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PLAYBOOKERS
Birthdays: Sen. PERCY DOWNE and GERRY BUTTS.
HBD +1 to PMO's JACKIE LEE.
Spotted: Governor General MARY SIMON in Iqaluit.
Movers and shakers: DANI SAAD has left the Prime Minister's Office … Longtime Liberal Hill staffer MIKE JONES is now a principal at Earnscliffe Strategies … FRANK TERSIGNI is now director of parliamentary affairs to International Trade Minister MANINDER SIDHU.
Lobby watch: The Canadian Renewable Energy Association posted a June 24 meeting with Energy and Natural Resources Minister TIM HODGSON.
— Pulse Canada posted a spate of June meetings. Top priority for exporters of dry peas, beans, lentils, faba beans and chickpeas: 'Working to maintain and strengthen market access for Canadian pulses and special crops in China and India.'
The lobby group met with Ag Minister HEATH MACDONALD and Minister Sidhu; MPs CLIFFORD SMALL, RANDY HOBACK, ADAM CHAMBERS, JOHN BARLOW and KODY BLOIS; WELDON EPP, assistant deputy minister at Global Affairs' Indo-Pacific branch; AARON WUDRICK and HOLLY DUGGAN in the Office of the Leader of the Opposition; and DAVID ANGELL, foreign and defense policy adviser to the prime minister.
Noted: Sen. PATRICK BRAZEAU is launching a men's mental health caucus.
Media mentions: Former 'Canada Tonight' host TRAVIS DHANRAJ sent an email blast to CBC employees announcing that he was forced to resign from the public broadcaster. He called for reforms, while claiming the CBC has 'problematic political coverage protocols.'
→ CBC responds: 'While we are limited in what we can say in response due to privacy and confidentiality considerations, CBC categorically rejects the accusations made about CBC News, our staff and management,' a spokesperson told Playbook.
→ Staying out of it: Canadian Identity Minister STEVEN GUILBEAULT.
Got a document to share? A birthday coming up? Send it all our way.
MORNING MUST-CLICKS
— From ANTOINE TRÉPANIER of the National Post: Finance minister directs Cabinet colleagues to find billions in spending cuts.
— The Globe's BILL CURRY reports that the House transport committee has voted to have ministers explain C$1-billion loan for BC Ferries' purchase of Chinese vessels.
— POLITICO's ALEX BURNS explains how ELON MUSK's third party gamble could succeed.
— KATE MCKENNA of CBC News reports that a major defense contract is set to favor a U.S. supplier, despite Carney's promise to diversify.
— A question from DAVID SKOK, CEO and editor-in-chief of The Logic: 'What happens to the news business when people stop clicking?'
— DYLAN ROBERTSON of The Canadian Press reports on ANITA ANAND's visit to Malaysia and Japan.
PROZONE
Our latest policy newsletter for Pro subscribers is here.
From ZACK COLMAN, ANNIE SNIDER and JAMES BIKALES: Climate change makes deadly floods more likely — but Washington is responding with cuts.
The latest headlines for our paid subscribers:
— Halted military aid for Ukraine may start flowing again.
— Trump sends tariff letters … extending deadline to Aug. 1.
— France can live with US tariffs if strategic sectors are shielded.
— International tribunal declares right to healthy climate.
— How one carbon market is helping industry fight climate change.
TRIVIA
Monday's answer: ED BROADBENT ran against ROSEMARY BROWN, DOUGLAS CAMPBELL, JOHN PAUL HARNEY and LORNE NYSTROM.
Props to DEREK DECLOET, MICHAEL WERNICK, GORDON RANDALL, TRACY SALMON, ROBERT MCDOUGALL, DAVE PENNER, ELIZABETH BURN, AMY SCANLON BOUGHNER, LAURA JARVIS, JOANNA PLATER, JEFFREY VALOIS, JOHN PEPPER, STÉPHANE HAMADE, NANCI WAUGH, RAY DEL BIANCO, MARY JANE ALLAN, DARRYL DAMUDE, JOSEPH PLANTA, PAUL PARK, CHARLES DILLON and MARCEL MARCOTTE.
Today's question: Who was then-Prime Minister ROBERT BORDEN talking about when he told the House: 'He had a magnificent courage which never quailed before any danger, or in the face of any odds.'
For bonus marks, connect your answer to this date in history.
Answers to canadaplaybook@politico.com.
Wednesday's Playbook will be written by NICK TAYLOR-VAISEY.
Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.
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