Hello, welcome to Politics Insider. Let’s look at what happened this week.


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The Canadian minister responsible for Canada-U.S. relations, Dominic LeBlanc, and Canada's chief trade negotiator to the United States, Janice Charette, speak to the media at the Embassy of Canada in Washington, D.C.Anna Rose Layden/Reuters

Canada and the U.S. have discussed critical minerals and defence in their continuing trade talks, and progress on those areas is expected to influence a trade deal the two sides are aiming to close next week.

Adrian Morrow reports, according to three Canadian and one U.S. source with knowledge of the negotiations, that the plan is still to conclude a “phase one” deal in which Canada would receive reductions in President Donald Trump’s tariffs in exchange for conceding on a list of U.S. trade demands. Dealing in detail with critical minerals and defence would come later.

But Canada’s willingness to work with the U.S. on those areas, and potentially offer tacit agreement on some of its demands, could influence the contours of the first-phase deal, the sources said.

Ottawa is hoping to conclude the agreement before Mr. Trump’s latest threatened round of tariffs begins on Aug. 19, in the hopes of preventing their imposition.

Elsewhere, Prime Minister Mark Carney’s summer reading titles include an award-winning true story of a homeless encampment in Toronto and a novel by one of Canada’s most famous astronauts.

In between, there’s a biography of a British chess prodigy who grew into a Nobel Prize-winning tech visionary, central to the development of AI.

Throughout the summer, this newsletter has been asking MPs and cabinet ministers about the fiction and non-fiction they are reading as the House of Commons is on break. Carney’s office responded this week.

Among others, Bloc Québécois Leader Yves-François Blanchet, Green Party Leader Elizabeth May, Canadian Identity Minister Marc Miller and Conservative MP Garnett Genuis provided reading lists.

Meanwhile, the Prime Minister has been taking some personal time in Italy, though he remains dialled into government business. He is back on Monday.

What else is going on

Stellantis considering selling Brampton assembly plant, union says: Unifor national president Lana Payne told a Toronto press conference today that the multinational automaker informed the union this week about its plans to potentially sell the plant.

Eby changes cabinet after B.C. Finance Minister announces cancer diagnosis: Brenda Bailey’s health issues have prompted Premier David Eby to announce that Health Minister Josie Osborne will take over the finance portfolio, while Jobs Minister Ravi Kahlon will step into the Health Ministry.

B.C. opposition finance critic leaves party: Former Kamloops mayor Peter Milobar says his values do not align with the new direction of B.C. Conservative Leader Kerry-Lynne Findlay, who was elected leader in May.

Canada seeks to acquire long-range strike system widely used in Ukraine war: The deep-precision strike system that Canada is looking to buy from another country initially, and later develop in-house, is somewhere between a long-range one-way attack drone and a cruise missile.

New Brunswick MP who wants to avoid pay raise takes request to court: Conservative Mike Dawson filed an application for judicial review in Federal Court in a bid to reject the pay hike of nearly $8,000.

Mark Mulroney promoted at CIBC: Canadian Imperial Bank of Commerce handed new responsibilities to the son of former prime minister Brian Mulroney, naming him as head of the bank’s office of the CEO.

Doug Ford says he was unaware PC Party trailed former Ontario Liberal leader to Jamaica: The Ontario Premier says he only learned this week of the December, 2023 incident targeting Bonnie Crombie, also saying he doesn’t condone it but adding that it was the party’s money.

Thousands sign petition calling for Pete Hoekstra’s removal from Canada: The online petition set to be presented in the House of Commons this fall accuses the U.S. ambassador to Canada of making statements that undermine the Canada-U.S. relationship and of intervening in Canadian political discourse in a manner inconsistent with diplomatic protocol.

Federal by-elections in 2026 set to cost upward of $24-million: Elections Canada says that while the cost of holding a by-election can vary according to multiple factors, a single by-election costs an average of $2-million.

New organization works to support Black politicians: The Canadian Congress of Black Politicians says it’s the only national organization that represents Black elected officials.


On our radar

Summer Break: The House of Commons is on a break until Sept. 21. The Senate sits again on Sept. 28.

Prime Minister’s Week: Mark Carney is in Italy on “personal commitments” until Aug. 17.

Party Leaders: Today, Bloc Québécois Leader Yves-François Blanchet toured the Quebec riding of Chicoutimi–Le Fjord – where a by-election is being held on Aug. 31 – with BQ candidate Caroline Dubé. Blanchet was scheduled to campaign in the riding through to Monday. Green Party Leader Elizabeth May participated in a Thursday walk in Victoria to raise awareness about the dangers that B.C. wolves face. On Tuesday, NDP Leader Avi Lewis was in Toronto to launch party candidate Shannon Devine’s campaign to win the Aug. 31 by-election in Beaches-East York. No schedules released for Conservative Party Leader Pierre Poilievre.

Ministers on the Road:

On Îles-de-la-Madeleine, Industry Minister Mélanie Joly, also minister responsible for Canada Economic Development for Quebec Regions, on Wednesday announced two repayable contributions totalling $700,000 for OSM Atlantic, an industrial machining business, to pursue its growth.

In Calgary on Tuesday, Indigenous Services Minister Mandy Gull-Masty highlighted a federal investment to help provide employment supports to Indigenous youth in Alberta.

In Washington this week, Canada-U.S. Trade Minister Dominic LeBlanc, with Chief Trade Negotiator Janice Charette, met with U.S. Trade Representative Jamieson Greer.

In Ottawa, on Monday, National Defence Minister David McGuinty announced that the government has awarded a $768.6-million construction-services contract to PCL Construction Canada Inc. to build a facility to support science and research related to the country’s food supply, emergency preparedness and securing its borders.

In the Quebec city of La Tuque, Finance Minister François-Philippe Champagne, on Wednesday, made a housing announcement. Today, he announced $378,700 in funding to the Regional County Municipality of Les Chenaux for a safe-navigation initiative.

In Halifax on Wednesday, Environment Minister Julie Dabrusin and the Federation of Canadian Municipalities announced 141 climate-resilience projects in 128 communities across Canada that are being supported by $34.2-million from the Green Municipal Fund.

In Yellowknife, Emergency Management Minister Eleanor Olszewski and Crown-Indigenous Relations Minister Rebecca Alty, on Thursday, announced a $3-million three-year investment in the Search and Rescue Volunteer Association of Canada, supporting the national network of Ground Search and Rescue volunteers.

Build Canada Homes Chair: Evan Siddall, the former CEO of the Canada Mortgage and Housing Corp. and vice-chair of BMO Capital Markets, has been named the inaugural chair of the board of Build Canada Homes. The federal agency has a mission to build affordable housing.

New diplomats: Robert Brookfield is the new ambassador to Russia and Juliette Gundy will become the new ambassador to Iraq. Biographies here. Foreign Affairs Minister Anita Anand announced the appointments this week.


Question period

Which recent first lady of Iceland was born in Ottawa?

Scroll to the bottom of this newsletter for the answer.


Perspectives

Peering over the cliff to lose-lose trade talks

It’s come to this: Ottawa now suggests it might have to walk away and suffer what comes. Canada’s economy stands to lose a lot, of course, and the U.S. a little. But the government of Canada is contemplating the possibility that the best alternative to a negotiated agreement with the U.S. might be lose-lose. Now, we are peeking over the cliff.

Campbell Clark, Chief Political Writer

So far, the Ontario Liberal leadership race is an exercise in meaningless platitudes

Those vying to become leader of the OLP could be in a position to make those real changes in just a few years’ time. But so far, most are just touting the status quo, disguised as change. That, and a story about their grade-six teacher.

Robyn Urback, Columnist

Trump factor spurs Canada and India to make progress on trade negotiations

U.S. President Donald Trump is not a party to those discussions, but he is motivating Canada and India to find common ground. An unwitting matchmaker, his trade antics with each of the Commonwealth countries are providing fresh incentives for Ottawa and New Delhi to get their own deal done.

Rita Trichur, Columnist

Go deeper

Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.

The answer to today’s question: Eliza Reid, the wife of former Icelandic president Gudni Thorlacius Johannesson, was born in Ottawa. Johannesson, an academic and historian, was president of Iceland between 2016 and 2024. Reid, who moved to Iceland in 2003, recounted her first lady experiences in the 2026 book The First Lady Next Door: A Canadian’s Memoir of Iceland, Identity, and Unexpected Adventure (Simon & Schuster)

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