As economic tensions rise between the U.S. and Canada, Prime Minister Mark Carney began the week with an affordability announcement in Ottawa on Monday.
Over the weekend, U.S. President Donald Trump reverted to calling Carney “governor” and threatened additional tariffs on Canada for making a trade deal with China.
Meanwhile, Carney and Industry Minister Melanie Joly travelled to Toronto to meet with Ontario Premier Doug Ford to further discuss the federal government’s auto strategy.
Here were the highlights from Jan. 26, 2026:
Doug Ford calls federal auto strategy ‘great’
Ontario Premier Doug Ford appears to have had a change of heart when it comes to the federal government’s auto strategy after hearing more about it from federal officials.
“I also want to thank Minister Joly for coming up with a great auto strategy that the minister has put together that we’re going to be part of,” Ford said at a news conference with Joly at Queen’s Park Monday after the two met.
While the two did not unveil specifics, Ford said he still believes any countries bringing vehicles into Canada should support existing Canadian auto workers.
“If companies are going to come in, no matter if it’s from China or over in Europe or over in Asia there, we have one request; build the vehicles here, protect the auto sector,” Ford said. “Make sure you get your parts here. Make sure we get the technology here. Make sure you follow the guidelines.”
Joly said the federal government is creating an “auto task force” to coordinate between Ottawa and the provinces and agreed Canada does not want to see any erosion of its manufacturing sector.
She also said the conditions for Chinese-made EVs to come into Canada will be unveiled in the coming weeks.
Joshua Freeman, CP24.com journalist
Canada to send naval patrol vessel to Greenland consulate opening: minister
Foreign Affairs Minister Anita Anand told The Canadian Press Monday that a Royal Canadian Navy patrol vessel will be on the scene when the federal government opens a new consulate in Greenland next week.
Anand, who will attend the opening in Greenland’s capital of Nuuk, said Canadians and their allies are coming to understand how critical the Arctic is to protecting North America and Europe, a lesson she said she learned during her time as defence minister.
The Greenland visit comes after U.S. President Donald Trump recently de-escalated his demands for the U.S. to acquire the Danish territory, which saw him threaten to impose tariffs on European nations opposing the idea and hint at the possible use of military force.
The Canadian Press
Carney stands by Plains of Abraham speech
Carney is standing by his comments about the Battle of the Plains of Abraham that drew a swift rebuke from Quebec’s political class.
The controversy erupted last week when Carney said the 1759 battle in Quebec City — during which the British defeated the French — symbolized the beginning of a partnership between two peoples.
Carney said the battle became a symbol of collaboration rather than domination — comments that Parti Québécois Leader Paul St-Pierre Plamondon said reflected Ottawa’s “long tradition of colonialism.”
After the defeat on the Plains of Abraham the French ultimately lost control of New France and what followed was a significant attempt to assimilate francophones.
The Canadian Press
Carney’s response to Trump
Taking questions following his announcement, Carney was asked about his thoughts on being called “governor” by Trump.
Carney said diversifying trade partners “is a positive thing.”
He called the upcoming review of CUSMA, or the Canada-U.S.-Mexico Agreement, “robust” as Trump is a “strong negotiator,” and that “some of these comments and positionings should be viewed in the broader context of that.”
Lynn Chaya, CTVNews.ca journalist
Carney links Trump’s tariff threat to negotiations on CUSMA
Carney says it’s no coincidence U.S. President Donald Trump’s latest tariff threat against Canada comes just ahead of negotiations on renewing North America’s main free-trade pact.
Trump originally expressed support for Ottawa’s agreement with China but he changed tune after Carney’s speech. Members of the Trump administration have warned Ottawa’s recent deal with China could upend negotiations on the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, which are set to take place this year.
The prime minister has maintained his new agreement with Beijing to sort out long-standing trade tensions over electric vehicles and agricultural products is consistent with CUSMA.
The trade agreement’s future is much less certain now, as Canada, Mexico and the United States prepare for the mandatory review. Earlier this month, Trump said the trade deal was “irrelevant” to him.
The Canadian Press
LeBlanc confirms discussion with U.S. trade representative
On his way into question period, Canada-U.S. Trade Minister Dominic LeBlanc told reporters he had a long, “cordial” and “productive” discussion with U.S. Trade Representative Jamieson Greer.
LeBlanc said Canada intends to fully respect CUSMA, which he says was partly the context of his conversation with Greer.
The agreement between the three countries states that members must give notice if a free-trade negotiation with a “non-market economy” is launched, such as China, which Carney insisted that Canada has no intention of doing.
When asked if Canada received any assurances that the U.S. would not impose 100 per cent tariffs on the country, LeBlanc said that he was reassured that Greer understood “clearly” what Canada’s trade deal with China “is and what it’s not.”
“What was reassuring is his clear desire to work with us and Mexico in terms of a review of CUSMA,” LeBlanc said.
He adds that the two spoke of the weeks to come and the upcoming CUSMA renegotiation and says they will continue this conversation in the next few days.
LeBlanc confirmed that he will be visiting Washington in the weeks to come.
Lynn Chaya, CTVNews.ca journalist
Doug Ford, Mark Carney mend fences
Ontario Premier Doug Ford and Prime Minister Mark Carney appeared to patch up their differences on trade Monday over a slice of pizza.
Meeting for the first time in weeks, the two men smiled for cameras and spoke to some local kids enjoying a snow day at a Pizza Nova location in Etobicoke.
“We’re all about Team Canada,” Ford told reporters.
Carney then echoed Ford: “All about Teams Canada, all aligned. I found it twice as productive as the premier.”
Asked if they had made up, Ford said the two men never had a problem.
“Listen guys, we’re a big family. And you know, sometimes brothers and sisters may disagree, but at the end of the day, make no mistake about it, we are one country, Team Canada. Both of us.
“Are there differences? Sure, there is. But I can tell you one thing; we agree on 99 per cent of the stuff.”
Joshua Freeman, CP24.com journalist
ICE wants to buy B.C. billionaire Jim Pattison’s building
The U.S. Department of Homeland Security says it wants to buy a building owned by the property arm of Vancouver-based conglomerate Jim Pattison Group to use as an Immigration and Customs Enforcement “processing facility.”
The department sent a letter to the Hanover County planning department in Hanover, Va., last Wednesday, sharing its intent to “purchase, occupy and rehabilitate” the warehouse property.
Property records show Jim Pattison Developments has owned the building since 2022.
The department says it intends to make modifications including construction of “holding and processing spaces,” as well as security and equipment upgrades.
The Canadian Press
Affordability announcement in Ottawa
With Parliament resuming after the winter break, Prime Minister Mark Carney has unveiled a boost to the GST credit as part of a suite of new affordability measures.
Carney made the announcement in Ottawa on Monday, launching what’s called the “Canada Groceries and Essentials Benefit.”
The quarterly GST payments will see an increase of 25 per cent over the next five years and will also include a one-time top-up of 50 per cent this June.
According to the federal government, a family of four will receive up to $1,890 this year with the increases, compared to $1,100 a year as the credit exists now. A single person, meanwhile, would receive $950 this year compared to $540.
Stephanie Ha, Ottawa News Bureau supervising producer
China says Canada deal not aimed at U.S.
China said on Monday that a preliminary trade deal with Canada “does not target any third parties” after the United States threatened to impose 100-per cent tariffs on Canadian products if the agreement were finalized.
Under the deal, announced this month, Beijing is expected to reduce tariffs on Canadian canola imports and grant Canadians visa-free travel to China.
But over the weekend, the United States -- Canada’s traditional ally -- threatened to impose 100-per cent tariffs on Canadian products if the deal were to go ahead, saying it would allow China to “dump goods”.
China’s foreign ministry spokesman Guo Jiakun said on Monday that the trade deal was not aimed at Washington.
“China and Canada have established a new type of strategic partnership... it does not target any third party,” China’s foreign ministry spokesman Guo Jiakun told a regular press conference.
“China advocates that nations should approach state-to-state relations with a win-win rather than zero-sum mindset, and through cooperation rather than confrontation,” he added.
AFP
U.S. stocks open modestly higher, gold tops US$5,000
Stocks are opening higher on Wall Street. The S&P 500 rose 0.4 per cent in early trading Monday. The index is coming off its second weekly loss in a row. The Dow Jones Industrial Average added 192 points, and the Nasdaq composite rose 0.3 per cent.
The price of gold rose two per cent to top US$5,000 an ounce for the first time. Several big U.S. companies report their latest results this week, including United Airlines, Boeing, and Apple.
The U.S. Federal Reserve is widely expected to hold interest rates steady when it meets this week. European indexes ticked higher. Japan’s Nikkei 225 dropped 1.8 per cent.
The Associated Press
Trump says China is ‘taking over’ Canada
U.S. President Donald Trump doubled down on his recent jabs at Canada by saying “Canada is systematically destroying itself” and calling “the China deal” a “disaster.”
“Will go down as one of the worst deals, of any kind, in history,” Trump wrote on Truth Social Sunday afternoon. “All their businesses are moving to the USA. I wanted to see Canada SURVIVE AND THRIVE!”
In a following post, Trump added that China is “successfully and completely taking over the once Great Country of Canada,” and that he was “so sad” to see it happen.
“I only hope they leave Ice Hockey alone!” he wrote.
U.S. Transportation Secretary Sean Duffy responded to Trump’s post, agreeing with the president and adding that Canada would “live to regret the day they let the Chinese Communist Party flood North America with their EVs.”
Aarjavee Raaj and Luca Caruso-Moro, CTVNews.ca journalists
