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Did Carney Scrap Carbon Tax?

Days after being sworn into office, Prime Minister Mark Carney has already moved on scrapping the consumer portion of Canada’s controversial carbon tax—at least on paper. Carney’s abrupt decision, announced in front of cameras as he signed what he called a “prime ministerial directive,” effectively sets the consumer fuel charge to zero by April 1 and ensures a final rebate payment in mid-April.

“This will make a difference to hard-pressed Canadians,” he declared. “But it is part of a much bigger set of measures that this government is taking to ensure that we fight against climate change, that our companies are competitive and the country moves forward.”

You can read more on the matter here.

What’s going on?

• Britain Plans ‘Tripwire Force’ for Ukraine as Trump Discusses ‘Dividing Assets’ with Putin (theDeepDive)

• Carney orders review of F-35 fighter jet purchase from U.S.’s Lockheed Martin (CTV)

• Trump Lays Groundwork for Investigating People Pardoned by Biden (WSJ)

• Treasury Suspends Anti-Money Laundering Reporting Requirements for US Businesses (theDeepDive)

• Prime Minister Mark Carney in Europe to strengthen ties with France, Britain (Globe)

• Canada’s Housing Starts Decline in February, Despite Six-Month Trend Growth (theDeepDive)

• EU to probe aluminium imports redirected by Trump tariffs (FT)

• Trump Administration Shuts Down Voice of America Operations, Cuts Funding to US Media Outlets (theDeepDive)

• US Homebuilder Sentiment Drops to Seven-Month Low on Costs (Bloomberg)

• A Secret Mortgage Blacklist Is Leaving Homeowners Stuck With Unsellable Condos (WSJ)

What’s the latest?

• Housing: Canadian home sales fell 10.4% year-over-year in February, reaching their lowest level since November 2023, with a 9.8% month-over-month decline. New listings dropped 12.7%, while total listings rose 13.1% year-over-year to 146,000, still below the long-term average of 174,000. The national average home price fell 3.3% to $668,097, while CREA’s home price index declined 0.8% month-over-month and 1% year-over-year, with the Toronto region seeing a 1.5% monthly drop.

• Hudson’s Bay: Hudson’s Bay is seeking court approval to begin full liquidation, jeopardizing over 9,000 jobs, after failing to secure financing to keep parts of the business running. The retailer aims to complete the process by June 15, though it remains hopeful for a last-minute solution with stakeholders, particularly landlords. Hudson’s Bay, which operates 80 department stores, three Saks Fifth Avenue locations, and 13 Saks Off 5th stores in Canada, cites low consumer spending, U.S.-Canada trade tensions, and declining downtown traffic as key challenges.

• Tariffs: Trump announced broad reciprocal tariffs and additional sector-specific tariffs starting April 2, targeting industries like autos, steel, and aluminum. Existing tariffs include 20% on China, 25% on steel and aluminum, and 25% on Canadian and Mexican goods, though USMCA-compliant goods received a one-month extension. Canadian energy and potash will face a 10% tariff. Markets and trade relationships remain strained as the administration pushes ahead with its aggressive tariff regime.

• Oil: Oil prices rose as U.S. crude hit $67.58 per barrel (+0.6%) and Brent reached $71.02 per barrel (+0.62%) after Trump warned Iran of severe consequences for any Houthi attacks. The U.S. continued airstrikes against the Houthis, aiming to protect Red Sea shipping routes. Trump reimposed sanctions to curb Iran’s oil exports, with Treasury Secretary Scott Bessent stating the goal is to collapse Iran’s economy. The White House maintains Iran is pursuing nuclear weapons, and National Security Advisor Mike Waltz said "all options are on the table" to prevent nuclear proliferation in the Middle East.

• Forever 21: Forever 21 filed for bankruptcy for the second time in six years and will liquidate its U.S. operations, impacting over 350 stores. The company blames competition from Shein and Temu, which leverage a trade law exemption to avoid import duties, allowing them to undercut pricing. Forever 21 lost over $400 million in the last three years and owes $1.58 billion in loans and over $100 million to suppliers. While U.S. operations are shutting down, its international stores and intellectual property remain intact, with potential for new operators in the future.

Avino Silver Q4 Earnings

The stock market and stuff

• Spirit Blockchain’s Smart and Safe Strategy: Positioning To Scale AUM As Demand for Institutional-Grade Crypto Yield Solutions Grows (theDeepDive)

• Elon Musk’s politics become a liability for Tesla sales in Ukraine (Globe)

• The Big Pump? Senator Lummis Introduces Strategic Bitcoin Reserve Bill (theDeepDive)

• Buffett’s Berkshire hikes stakes in five Japanese trading houses to almost 10% each (CNBC)

• Siemens to Invest $285 Million in New US Manufacturing Facilities (theDeepDive)

In the juniors

• Kits Eyecare Raises Adjusted EBITDA Guidance For First Quarter (theDeepDive)

• K92 Mining Posts Record 178% Jump In Net Income In Q4 2024 (theDeepDive)

• Power Metallic To Expand Drill Program To Six Rigs, 100,000 Metres Of Drilling Planned (theDeepDive)

• Founders Metals Hits 2.29 g/t Gold Over 72 Metres At Van Gogh (theDeepDive)

FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.