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Jan 30, 2025 View in browser
 
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By Mike Blanchfield and Nick Taylor-Vaisey

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Thanks for reading Ottawa Playbook. Let’s get to it.

In today's edition:

→ Selling Washington on Canada’s border plan.

→ Who’s who in the office of Finance Minister DOMINIC LEBLANC.

→ Conversation starters on Trump's new NATO target.

DRIVING THE DAY

Secretary of State Marco Rubio greets Canada's Minister of Foreign Affairs Mélanie Joly in the Treaty Room at the State Department, Wednesday, Jan. 29, 2025. (AP Photo/Manuel Balce Ceneta)

Foreign Affairs Minister Mélanie Joly was in Washington Wednesday where she met Secretary of State Marco Rubio. | AP

JOLY IN WASHINGTON — Foreign Affairs Minister MÉLANIE JOLY says there’s no way she can be in DONALD TRUMP’s “headspace,” so the best she can do is to make Canada’s arguments to the people around him, like Secretary of State MARCO RUBIO. 

Joly was in Washington Wednesday as part of a full-court press of Cabinet ministers working to stave off Trump’s threat of 25 percent tariffs, a potentially debilitating levy that could take hold as early as Saturday.

She met Rubio before speaking to reporters at the Canadian embassy in Washington.

Joly reinforced that Canada has a strong plan to address Trump’s concerns that too many illicit drugs and illegal migrants are entering the U.S. from Canada. Canadian leaders continue to point out that less than 1 percent of all fentanyl entering the U.S. comes from north of the border. She also touted Canada’s C$1.3 billion border strategy.

— As seen on TV: The Globe reports that Ottawa is sending packages of video clips to Trump to showcase new spending on border measures.

→ Today in Washington: Canada’s public safety minister will be in town to broadcast the message that the border is strong — "and we’re making it stronger."

Ahead of his trip, DAVID MCGUINTY told reporters he’s “laser-focused” on Canada’s six-year border plan.

— And that's not all: As proof of Canada's commitment, McGuinty pointed to two new Black Hawk helicopters, 60 new border drones, "detector dog teams specialized 100 percent in fentanyl detection," X-rays, mobile scanners and chemical analysers.

— Could do more: The Canadian Press reports that Alberta Premier DANIELLE SMITH wants Ottawa to appoint a "border czar" to work with the U.S.

— State of play: Globe columnist LAWRENCE MARTIN sets the scene in D.C.: "No matter that the Trump threat is the worst Canada has faced in generations — there has been little pushback. There’s silence from Republicans who are terrified of challenging their self-worshipping sultan. There’s mostly silence from Democratic lawmakers who, with Mr. Trump flooding the zone, are too busy with other shock-and-awe stuff."

→ Meanwhile in Ottawa: This afternoon, a team of public servants will offer a small army of industry reps, provincial counterparts, lobbyists and labor leaders a sounding board as Canada readies itself for the tariffs.

— Safe space: The Department of Finance will helm the third weekly forum on Canada-U.S. issues aimed at dozens of stakeholders. Deputy Minister CHRIS FORBES headed up the first two, aided by ARUN ALEXANDER, Canada's deputy ambassador in Washington.

— Crowded call: This week's email invite includes at least 273 recipients.

— Shifting ground: The department's post-confab readouts have so far reflected the roiling cross-border uncertainty.

This'll come up: U.S. Commerce secretary nominee HOWARD LUTNICK acknowledged Wednesday that Canada and Mexico are making progress toward avoiding the 25 percent tariff.

He spun the Trump administration's Canada-focused tariff threat as "not a tariff, per se," but rather an "action of domestic policy" aimed at "ending fentanyl coming into the country."

“You know that the labs in Canada are run by Mexican cartels," Lutnick said under questioning at a Senate Commerce Committee. “This tariff model is simply to shut their borders with respect to America. If we are [Canada’s] biggest trading partner, show us the respect. Shut your border and end fentanyl coming into this country.”

Canada has an out, Lutnick told senators. If the Trump administration is satisfied with Ottawa's measures, no tariffs would follow.

— All clear, then? Not by a longshot. Lutnick said a broader study due by April 1 could also lead to tariffs on Canadian imports.

 

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For your radar


SPINNING PLATES — DOMINIC LEBLANC is not lacking for priorities. Cabinet's pointman on government finances, Canada's premiers and key players in the Trump transition is starting to prepare an annual budget — and, according to the Globe, a bulky tariff relief package.

The finance minister is only six weeks into the mammoth job he assumed amid a swirl of chaos following CHRYSTIA FREELAND's shock resignation. Recall the minister's acknowledgment on DAVID HERLE's pod last month that he's no economic expert.

Sounds like a guy who needs a team in place. We asked LeBlanc's office for all the senior members of his staff. Here's the top section of the org chart.

BRANDAN ROWE, chief of staff

MAJA KOSTIC, senior adviser

BUD SAMBASIVAM, director of policy

ALEX AXIOTIS-PEREZ, director of operations

ALEXANDER WOZNY, director of parliamentary affairs

REBECCA PARKINSON, director of intergovernmental affairs

JEAN-SÉBASTIEN COMEAU, director of communications

MATHEW HALL, deputy director of policy

YASH NANDA, deputy director of policy

LEADERSHIP RACE


50 PERCENT OFF — Another day, another policy injection from Liberal leadership contender CHRYSTIA FREELAND. Wednesday brought a commitment to slash the size of Cabinet and the payroll at the Prime Minister's Office.

— Twenty minister cap: Freeland would appoint "empowered" regional ministers, as well as "junior ministers" — styled as ministers of state — that would support Cabinet without contributing to its headcount.

— Decentralization: The former deputy PM also pledged to shrink the PMO in an effort to prevent "overreach" and put more influence in the hands of ministers and MPs.

— Because it's…: In a statement, Freeland appeared to commit to gender parity on the front bench. “At minimum, women will have an equal voice within Chrystia Freeland’s cabinet,” said spokesperson KAT CUPLINSKAS.

— Cynic's-eye view: Ottawa has heard this song before. STEPHEN HARPER's first ministry numbered 26. He left office with one of the largest in history. JUSTIN TRUDEAU followed a similar track. Same for JEAN CHRÉTIEN. Check the official record.

— Poll du jour: The most recent Léger survey offered good news for MARK CARNEY's campaign. Fifty-seven percent of Liberal voters wanted him to succeed Trudeau. Freeland garnered only 17 percent.

— In related reading: “I’m the only one who has put reconciliation at the forefront of what’s important to him,” Liberal leadership candidate JAIME BATTISTE told The Hill Times.

Where the leaders are


— Prime Minister JUSTIN TRUDEAU is in the National Capital Region with no public-facing events on his itinerary.

— Conservative Leader PIERRE POILIEVRE and Bloc Québécois Leader YVES-FRANÇOIS BLANCHET have not shared public itineraries.

— NDP Leader JAGMEET SINGH is in Sault Ste. Marie, Ontario, where he will discuss the threat of tariffs on Canadian jobs with union leaders, including United Steelworkers National Director MARTY WARREN, USW District 6 Director KEVON STEWART and Canadian Labour Congress President BEA BRUSKE.

— Green Leader ELIZABETH MAY has no public events on her calendar.

DULY NOTED


— Health Minister MARK HOLLAND and Nova Scotia Health and Wellness Minister MICHELLE THOMPSON will hold a press conference at the close of a two-day gathering of the country’s health ministers.

9 a.m. The Parliamentary Budget Office will post a new report titled, “Stress Testing the Government’s Fiscal Anchor and Fiscal Objective.”

HALLWAY CONVERSATION

Canada's Defence Minister Bill Blair speaks during a meeting.

"There'll be some changes. There'll be some new things we have to deal with, the new people and personalities. But I trust America," Defense Minister Bill Blair told POLITICO last fall. | Yuichi Yamazaki/AFP via Getty Images

TARIFF DEFENSE 2.0 — While Ottawa scrambles to sell Trumpland on its plans for a beefed-up border, it can be easy to forget the new president also wants Canada to boost its defense spending.

White House press secretary KAROLINE LEAVITT reminded NATO members this week that 5 percent of GDP is the latest target Trump has in mind.

“We have a good plan when it comes to investing in defense,” Joly said Wednesday evening. “But I think we need to do more, and we need to do more, quicker.”

— Reminder: Defense Minister BILL BLAIR recently alluded to a 2027 timeline to hit NATO's 2 percent benchmark as "absolutely achievable."

For a couple of decades, both Republican and Democratic presidents have been asking Canada for more. Trump really seems to mean it.

Is it too late to act? Playbook put the question to three experts and observers:

→ ROB HUEBERT, a political scientist at the University of Calgary with expertise in international security.

→ JAMES CARAFANO, the leading expert on defense and foreign policy with The Heritage Foundation.

→ ANDREW LESLIE, the retired lieutenant general who commanded the Canadian army in Afghanistan before becoming a Liberal MP and parliamentary secretary on Canada-U.S. relations.

Some notes from those conversations:

→ The social safety net myth: There is the time-honored notion that Canada can’t pump billions into defense without eating into spending on other priorities.

Huebert says that was debunked by the two-month GST/HST holiday rebate by Prime Minister JUSTIN TRUDEAU, the "gimmick" that helped spark the resignation of CHRYSTIA FREELAND as Canada’s deputy PM and finance minister.

“The government had the political will and was willing to spend that type of money in that short of a time,” Huebert said.

Ottawa faces tough spending choices at a time when provinces are dealing with stressed and stretched health care. There’s also the rising cost of living and a housing shortage.

Still, Huebert says, Canada must show the Americans "we are not a weak link."

→ The Arctic awaits: Canada is under increasing pressure to protect its sovereignty in the North. Melting sea ice is opening the region to increased shipping traffic. Russia and China have designs on it, too.

Canada could easily reach a 2 percent spending target, says Carafano, by increasing spending on infrastructure and space-based surveillance, which the U.S. would find helpful. Yukon Premier RANJ PILLAI is a booster of this kind of thinking.

That would mean more to the U.S. than supplying military hardware to NATO’s efforts in eastern Europe to help Ukraine, Carafano argued.

"That would be a really, really welcome and refreshing thing in the U.S.," Carafano added. "You’re not going to two percent just because Donald Trump is beating you up, or because we need another Canadian flag in Europe, but because it’s something that actually is really important and valuable to Canada."

— For your radar: Joly said Wednesday that as much as Canada values its U.S. partnership in the Arctic, Canada’s policy is shifting to embrace NATO’s new Nordic allies in the North: Denmark, Sweden, Finland, Iceland and Norway.

“For a long, long time, the Arctic was seen as high-north, low-tension,” Joly said. “But at this point we know that things have changed, geopolitics have shifted, and therefore, we need closer cooperation amongst NATO allies in the Arctic.”

→ We've heard it before: As an MP, Leslie was in the House of Commons for former President BARACK OBAMA’s 2016 speech about the world needing more Canada.

Obama earned a standing ovation, even as he went on to say Canada needed to spend more on defense.

"But he was Obama, so he was polite and respectful," Leslie said. Now, he noted, Canada is dealing with "a different type of personality."

 

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MEDIA ROOM


— Top of POLITICO: ‘Nothing short of a nightmare': Jet, helicopter collide in deadly crash near Reagan National.

— The Star’s RYAN TUMILTY reports that Independent MP HAN DONG wants to run again in his north Toronto riding again — under the Liberal banner.

— From ALLISON JONES of The Canadian Press: Tariff fight takes centre stage as Ontario election campaign kicks off.

LAURA STONE is on "The Decibel" pod today to talk about "DOUG FORD's big election gamble."

— On The Hub, SABRINA MADDEAUX writes of tariff threats: "We should demand our politicians don’t turn this potential economic emergency into COVID 2.0."

— The Walrus features ADNAN R. KHAN on the dark world of immigration consultants.

PROZONE

Howard Lutnick testifies during his confirmation hearing.

Commerce secretary nominee Howard Lutnick said Wednesday that Canada and Mexico are making progress toward avoiding the 25 percent tariff. | Francis Chung/POLITICO

For POLITICO Pro subscribers, our latest policy newsletter: The zone is flooded. We’re taking notes.

 In the latest tariff news for Pro readers: 

Lutnick says Canada, Mexico making progress toward avoiding tariffs.

Lutnick argues for tough tariff approach to pry open foreign markets.

And other headlines:

China hawks urge White House to tighten chip export controls after DeepSeek.

EU, seeking to woo Trump, offers to team up with US on China.

RFK Jr. appears to pass first test on road to confirmation.

Feds flabbergasted by Trump’s mass resignation scheme.

Disrupted disaster aid prompts fears of delayed recovery ‘for years.’

PLAYBOOKERS


Birthdays: HBD to former AFN national chief OVIDE MERCREDI, Conservative MP JOHN WILLIAMSON, former Saskatchewan Finance Minister JANICE MACKINNON, JENNIFER BABCOCK of the Canadian Cattle Association, and Blooming Parrot PR's MADISON FLEISCHER, the Liberal candidate in the Cloverdale-Langley City by-election.

POLITICO’s BOB HILLMAN also celebrates today.

Noted: Former Liberal MP SCOTT SIMMS will take the stage in Ottawa Little Theatre's production of "The Shawshank Redemption," which runs Feb. 26 until March 15.

Elections Canada posted a notice of vacancy in former Liberal MP PABLO RODRIGUEZ's Montreal riding. Because the seat opened less than nine months before a fixed election date, constituents won't elect an MP until the next general election.

Movers and shakers: AUDREY CHAMPOUX is leaving her position as director of communications for Minister FRANÇOIS-PHILIPPE CHAMPAGNE to work on MARK CARNEY’s Liberal leadership campaign.

Got a document to share? A birthday coming up? Send it all our way .

TRIVIA


Wednesday’s answer: There are 124 electoral districts in Ontario.

Props to MARCEL MARCOTTE, JOHN ECKER, MELISSA COTTON, LAURA JARVIS, NANCI WAUGH, RAY DEL BIANCO, BOB RICHARDSON, BILL WATSON, ALYSON FAIR, ROBERT MCDOUGALL, ALANNA SOKIC and ROHIN MINOCHA-MCKENNEY.

Today’s question: What leader and activist once said of his poetry: “I try as much as possible not to be preachy, but you know what? It’s very hard not to in some cases.”

Send your answer to ottawaplaybook@politico.com

Writing tomorrow's Playbook: MICKEY DJURIC.

Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, editor Willa Plank and Luiza Ch. Savage.

Advertise in our Playbook. Contact Jesse Shapiro to find out how: jshapiro@politico.com.

 

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