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Canada Axes Carbon Tax

Prime Minister Mark Carney’s government introduced legislation Thursday to formally eliminate Canada’s consumer carbon tax, fulfilling a key campaign promise and marking a dramatic policy reversal on the climate measure that became a political albatross for the previous Liberal administration.

Bill C-4, officially titled the “Making Life More Affordable for Canadians Act,” was given first reading June 5 and would repeal Part 1 of the Greenhouse Gas Pollution Pricing Act and related fuel charge regulations. The move codifies the elimination of the federal fuel charge that was already suspended through regulatory changes in April.

You can read more on the matter here.

What’s going on?

• Tariffs Dry Up Imports, US Trade Deficit Sinks to Three-Year Low (theDeepDive)

• New federal legislation would cut internal trade barriers and advance ‘nation-building’ projects (Globe)

• “The Girls Are Fighting”: An In-depth Explainer On Trump-Musk Slugfest (theDeepDive)

• Donald Trump and Elon Musk’s allies urge reconciliation after damaging split (FT)

• Ted Cruz Questions Federal Reserve’s Interest Payments to Banks (theDeepDive)

• Hiring Slowed in May, With 139,000 New Jobs (WSJ)

• Musk Says He’s Decommissioning Dragon Spacecraft, Calls For Trump’s Impeachment (theDeepDive)

• X plays up blue checkmark disclaimer to stave off possible EU fine, source says (Reuters)

• Civil War: GOP Splits Over Trump’s Massive Bill (theDeepDive)

• White House Quietly Pressures Senate to Water Down Russia Sanctions (WSJ)

• NATO Defense Ministers Meet to Finalize Defense Spending Targets Before June Summit (theDeepDive)

• Top Federal Reserve official promises major overhaul of US bank regulation (FT)

• BC Premier Rejects Calls for New Oil Pipeline Support (theDeepDive)

What’s the latest?

• Politics: Prime Minister Mark Carney’s government introduced Bill C-5 to reduce interprovincial trade barriers, recognize cross-province worker credentials, and fast-track national infrastructure projects. Canadians currently pay 7.8% to 14.5% more for goods/services due to these trade barriers, which impact $530 billion worth of interprovincial commerce—nearly 20% of GDP. Officials say eliminating such barriers could add up to $200 billion to Canada’s economy. The bill aims to cut project approval times from five years to two and commits to removing all federal trade exceptions by July 2025.

• Tesla: Tesla shares rebounded 5% after tensions between Elon Musk and U.S. President Trump showed signs of cooling, following a $150B loss in market value the day before. Short-sellers gained nearly $4B from the drop. The conflict stemmed from Musk’s criticism of Trump’s bill that would end EV tax incentives, prompting Trump to suggest cutting government contracts with Musk’s firms. Tesla is still down 29.5% year-to-date, trading at 120x expected earnings, amid political fallout, weak sales, and valuation concerns.

• Stocks: Canada’s TSX index rose 81.84 points to 26,424.13, driven by gains in the energy and tech sectors. U.S. markets also advanced, with the Dow up 353.70 points, the S&P 500 up 53.32, and the Nasdaq up 198.88. Oil climbed to US$64.47, while natural gas edged up to US$3.70. Gold fell US$23.10 to US$3,352.00, and copper slipped to US$4.88.

• Stellantis: Stellantis’ incoming CEO Antonio Filosa will earn a minimum of US$4M annually for his first two years, with compensation potentially rising to $23M/year from 2028 through bonuses and long-term incentives. His base salary is $1.8M, and he’s eligible for bonuses up to 400% of that, plus stock incentives up to 780% starting in 2027. He also receives a $1.2M annual cash award until LTI kicks in. Though lower than predecessor Carlos Tavares, Filosa’s pay package includes perks like aircraft access, U.S. benefits, and tax equalization. His 5-year term starts end of June.

• Economy: Canada’s unemployment rate rose to 7.0% in May, with 1.6 million jobless people, up 14% from a year ago. Employment increased by only 8,800 jobs, while full-time positions rose by 57,700 and part-time jobs fell by 48,800. The average duration of unemployment grew to 21.8 weeks, and wage growth held steady at 3.5%.

Moody's Downgrades the US [Gold to $10,000]

The stock market and stuff

• Tesla Faces Mounting Regulatory Pressure on Self-Driving Technology Ahead of Robotaxi Launch (theDeepDive)

• Apple’s Growing List of Problems Clouds AI Reboot (WSJ)

• Trump considers getting rid of his Tesla on heels of Elon Musk feud (CNBC)

• Coinbase Allegedly Pulls A 99% Rug On User Coverage, From $1M To $10K (theDeepDive)

In the juniors

• Ramp Metals Completes Spring Drill Program and Announces Additional Mineralization at Rush Target (JMN)

• Ramp Metals Completes 4,942 Metres Of Drilling Under Spring Program At Rottenstone SW (theDeepDive)

• Nova Pacific Metals Provides Drilling Update at Lara Project (JMN)

FULL DISCLOSURE: PTX Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of PTX Metals. The author has been compensated to cover PTX Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.