Good morning!

In today’s news, we’re diving deep into the impacts of Donald Trump's ongoing trade war with Canada and how it’s set to affect prices on various goods, from houses to pharmaceuticals. But first, let’s take a look at some key headlines.

Today's Headlines:

- Ontario’s ethics watchdog has found that a lobbyist and former Ford aide broke the rules with Greenbelt clients.

- Leaders Carney and Singh have unveiled their housing plans, while Poilievre is promising a quicker ramp-up of resource projects.

- A new United Nations report is urging Canada to reconsider its Medical Assistance in Dying (MAID) policy for non-terminal patients.

The Trade War: The Price of Protectionism

Donald Trump’s trade policies have sparked widespread dissatisfaction, especially as Americans brace for significantly higher prices on essential items. While the president initially claimed that tariffs wouldn’t lead to inflation, he has since conceded that prices may rise in the short term, albeit with the promise that they would eventually stabilize. As Trump approaches his so-called 'Liberation Day,' when he intends to impose tariffs on trading partners, it's time to comprehend the real costs involved.

Lumber

Trump infamously claimed, “We don’t need their lumber. We have massive fields of lumber.” However, he’s failing to recognize that one-third of the lumber used for constructing U.S. homes comes from Canada. Canadian softwood lumber is favored for its superior quality, which is pivotal for building sturdy homes. Reports indicate that the current 14.5% duties on Canadian softwood are forecasted to increase by an additional 25%, driving up the average price of a U.S. home by nearly $4,900. The National Association of Home Builders warns that each $1,000 rise in home prices could disqualify around 106,000 potential homebuyers from the market.

Pharmaceuticals

Trump has also asserted that bringing drug manufacturing back to the U.S. is crucial, intending to impose tariffs on Canadian pharmaceuticals. This will likely exacerbate existing shortages in critical medications such as antibiotics and therapies for chronic conditions. With U.S. drug prices already nearly 3.6 times higher than Canadian prices, a new 25% tariff could add an additional $750 million annually to consumer costs.

Automobiles

Trump’s indifference toward higher car prices is evident with his latest tariffs, which could raise vehicle costs anywhere from $3,000 to $10,000, depending on the model. This predicament not only impacts new car buyers (approx. 16 million annually) but also affects used car purchases and the costs associated with auto repairs and insurance. As tariffs work their way through the supply chain, dealerships are expected to start increasing prices soon, leaving many Americans feeling the financial pinch.

Election 2025

In the political arena, a recent poll indicates that two-thirds of Canadians want Conservative Leader Pierre Poilievre to undergo security clearance while many think Liberal Leader Mark Carney should disclose his blind trust investments. On the campaign trail, Poilievre sidestepped inquiries about his campaign’s issues, while Carney faced controversy over a Liberal candidate’s comments about a Conservative opponent, leading to the candidate’s resignation just yesterday.

The Wrap: What Else We’re Following

- Internationally, the UN has reported tragic incidents involving Israeli troops and Palestinian responders.

- Domestically in Ontario, the government is set to close nine supervised consumption sites despite a court injunction.

- In France, far-right leader Marine Le Pen has been convicted of embezzlement, barring her from public office for five years.

- Although Hudson’s Bay is facing liquidation, high-end beauty products remain priced as usual.

Stay tuned as we continue to follow these stories and more in the evolving landscape of trade, politics, and global events!