Hello, welcome to Politics Insider. Let’s look at what happened today.
Donald Trump’s aggressive tariff policy poses a risk to financial stability in Canada, says the Bank of Canada.
In its annual Financial Stability Report, released today, the central bank said the U.S. President’s erratic tariff agenda could lead to market dysfunction in the near term.
The report says it could also prompt debt defaults by households and businesses in the coming quarters if the trade war drives the Canadian economy into a recession.
Mark Rendell writes that over the past year, financial stability risks have generally declined in Canada as households have paid down debts and interest rates have fallen, implying a less severe mortgage-renewal shock.
But Trump‘s economic attacks on Canada and rush to remake the global trading system have “pushed risks higher overall,” said Bank of Canada Governor Tiff Macklem.
“In the near term, the unpredictability of U.S. trade policy could cause further market volatility and strains on liquidity. In an extreme case, market volatility could turn into market dysfunction,” Macklem said, according to the prepared text of his press conference opening statement.
Also today, American cardinal Robert Prevost has been elected the new pope and leader of the Roman Catholic Church - the first American to hold the papacy in the Catholic Church’s history.
Prevost has taken the name Pope Leo XIV, a senior cardinal announced to crowds in St. Peter’s Square.
Bank of Canada Governor Tiff Macklem is seen during a news conference following the release of the Financial Stability Report on Thursday, May 8, 2025.Adrian Wyld/The Canadian Press
What else is going on
Trump announces U.S. trade deal with Britain, says ‘final details’ still to come: The limited trade agreement, announced today by U.S. President Donald Trump, will cut tariffs on U.S. imports of British cars, steel and aluminum, and pave the way for greater exports of American beef into Britain.
Quebec reports high immigration, record low fertility in 2024: A new report from Quebec’s statistics institute says nearly 160,000 immigrants arrived in Quebec last year, the second-highest number recorded after 2023.
More than 800 special ballots ‘mistakenly’ kept in B.C. riding, Elections Canada says: The agency says all registered political parties have been informed that 822 special ballots cast by electors in 74 electoral districts across the country were left with the returning officer in the riding of Coquitlam–Port Coquitlam.
Calgary swears in new police chief after former chief’s abrupt resignation: Katie McLellan has taken her oath as the Calgary Police Service prepares for a busy summer that will include the meeting of world leaders at the G7 in Kananaskis, Alta., and the Calgary Stampede.
Yukon Premier stepping down, won’t run in next election: Ranj Pillai, the Premier since 2023, says he is stepping down as leader of the territorial Liberal party and won’t be running for re-election in his Whitehorse riding.
Who will be in Carney’s cabinet?: During his first postelection news conference, Prime Minister Mark Carney suggested he’s aiming for a relatively small cabinet with an equal number of men and women.
On our radar
Prime Minister’s Day: No schedule released by the Prime Minister’s Office.
Party Leaders: No schedules released for party leaders.
U.S. ambassador in spotlight: Pete Hoekstra, the newly arrived U.S. ambassador to Canada, will participate in a June 3 conversation event in Toronto, hosted by the Empire Club of Canada. Former federal cabinet minister Lisa Raitt will moderate.
Toronto mayor staying put: Olivia Chow’s office says the former NDP MP will not be seeking the federal New Democratic Party leadership. “She’s not running for NDP leader,” Shirven Rezvany, a spokesperson for the Toronto mayor, said in a statement. Chow joins B.C. Premier David Eby and Manitoba Premier Wab Kinew among notables who have ruled out a bid to succeed Jagmeet Singh.
Changes in Radio-Canada parliamentary team: Radio-Canada’s Ottawa bureau chief, Louis Blouin, is headed for Washington as correspondent in the U.S. capital for radio and digital platforms, according to a Radio-Canada statement. Blouin takes on his new responsibilities at the beginning of the school year. In a posting on X, Blouin said it had been a gift to be part of a talented team and rubbed shoulders with brilliant journalists on Parliament Hill over the years. The new Radio-Canada Ottawa bureau chief is Daniel Thibeault, who will take on that role and continue to host the Sunday-morning talk show, Le Coulisses du pouvoir.
Quote of the Day
“When you’re doing the FSR [Financial Stability Report], you put your gloomy hat on. You get gloomy. You think about, OK, what could go wrong? And then you ask, `How well prepared are we?’ `How do we get better prepared?’” - Bank of Canada Governor Tiff Macklem at an Ottawa news conference today, on the 2025 Financial Stability Report on the state of Canada’s financial system and threats to its stability.
Question period
Prime Minister Mark Carney has announced a first ministers’ meeting in Saskatoon next month. Who was the prime minister when the last such meeting − a gathering of the premiers, territorial leaders and prime minister − was held in Saskatchewan?
Scroll to the bottom of this newsletter for the answer.
Perspectives
Doug Ford is running roughshod over the environment and the law. Sound familiar?
It’s a spirit that sounds dangerously similar to what is being wrought by the current White House. It’s ironic – and tragic – that Mr. Ford appears to be transforming into the very threat he says he is trying to defend Canadians against.
— Tanya Talaga, Columnist
Trump’s betrayal of Canada is starting to unravel
To my mailbox came an e-mail from Gordon Giffin, the Atlanta lawyer who served as ambassador to Canada during Bill Clinton’s presidency. Your Prime Minister, he wrote, “gets an A-plus for the way he handled the White House today – confident, competent, with a clear sense of what he wanted to achieve. He is uniquely suited for the moment.”
— Lawrence Martin, Public Affairs Columnist
Carney achieved nothing of substance in Washington. But that’s okay
Mr. Trump’s demeanour toward Mr. Carney was closer to his approach with French President Emmanuel Macron than his approach to Justin Trudeau, an odd blend of respect and bemused disagreement.
— Kevin Yin, Contributing Columnist
Go deeper
- Follow along for our stories on Canada-U.S. relations as news develops
- Like a long read? Check out the fall of Justin Trudeau and the making of Pierre Poilievre
- Take a look at the history of immigration reporting and great political scandals from A Nation’s Paper, a book about The Globe and Mail’s role in Canadian history
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: Brian Mulroney, who was the Progressive Conservative prime minister from 1984 to 1993. The last first ministers meeting in Saskatchewan was held in Regina on Feb 14-15, 1985. It was the first such meeting held outside Ottawa since 1971. Premiers around the table included Frank Miller from Ontario, René Lévesque from Quebec, Peter Lougheed from Alberta and Bill Bennett from British Columbia. Among the outcomes of the gathering was an accord signed by participants to meet at least once a year.