Trudeau Criticizes ‘Short-Term Thinker’ Politicians Amid Provincial Requests to Pause Carbon Tax Hike

Prime Minister Justin Trudeau and Alberta Premier Danielle Smith meet in Calgary on March 13, 2024. The Canadian Press/Todd Korol

Prime Minister Justin Trudeau is defending his government’s upcoming carbon tax hike amid provincial pushback, saying the policy is the best way to set Canada up for “success in the future.”

He criticized “short-term thinker politicians” during a March 13 press conference in Calgary, saying the 23 percent pricing increase set for April 1 is a “logical way” to address the impacts of climate change.

His remarks come as an ever-increasing number of premiers, including Newfoundland’s Liberal Premier Andrew Furey, urge Ottawa to pause the planned pricing increase from $65 to $80 per tonne.

“Why are so many people still against it? Well, you know, that’s a question we all have to ask,” Mr. Trudeau said.

“But my job is not to be popular ... although it helps. My job is to do the right things for Canada now and do the right things for Canadians a generation from now. And that’s what I’ve been focused on.”

Mr. Trudeau was in Alberta to meet with Premier Danielle Smith, one of the most outspoken critics of Ottawa’s carbon pricing policy. Ms. Smith was just one of the premiers to endorse a letter penned by Mr. Furey urging the prime minister to hold off on implementing the tax hike.

His letter pointed out that Canadian families are dealing with the “most significant cost of living crisis in a generation,” adding that now is not the time to add to their financial burdens.

Ontario Premier Doug Ford also spoke out forcefully this week, saying that if the federal government refuses to cancel the tax “the people of Canada are going to annihilate you when the next election comes up.”

Mr. Trudeau appeared unphased by the premiers’ feedback, however.

“That’s an easy thing for short-term thinker politicians to say, ‘Oh, we’ll get rid of the price,'” he said. “They don’t talk about the fact that they’re also going to get rid of that cheque, the Canada Carbon Rebate, that puts more money in the pockets of the vast majority of Canadians.”

The prime minister has said the rebate, formerly known as the Climate Action Incentive Payment, that Canadians receive offsets the rising price of fuel, although a 2023 Parliamentary Budget Officer report refuted that claim.

The report indicated the carbon tax would result in a “net loss” of between $377 and $911 in 2024–2025 for most Canadian households even after receiving federal rebates.

Call for Carbon Tax Pause

Mr. Furey’s open letter to the prime minister has been applauded by a number of premiers, including Ms. Smith, Mr. Ford, and Saskatchewan Premier Scott Moe.

“For the past two years now, Canadians have endured persistent and punishing inflation, coupled with the most aggressive upward interest rate trajectory in the history of the Bank of Canada,” Mr. Furey wrote in a March 12 letter posted to platform X.

“I respectfully request that you consider pausing the implementation of the April 1 carbon tax increase—at least until inflation stabilizes, interest rates lower, and related economic pressures on the cost of living sufficiently cool.”

Prince Edward Island Premier Dennis King and Nova Scotia Premier Tim Houston sent similar letters to the prime minister, posting them to their social media accounts this week.

“The cost of living in PEI is already extremely high compared to the rest of the country and at this time, we need to do everything we can to help, not hurt,” Mr. King said in his post.

Mr. Houston said the upcoming increase would be “punishing” for Nova Scotians.

“I am asking that you cancel the carbon tax before any more financial damage is done and work with us to focus on the most beneficial path for the environment that would mean a more self-reliant—and cheaper—path for Nova Scotia,” he wrote.

New Brunswick Premier Blaine Higgs, in a March 12 social media post, accused Mr. Trudeau of “putting ideology above individuals and politics over people.”

The federal charge will be applied across the country except in British Columbia, Quebec, and the Northwest Territories where they collect their own fuel tax.

‘Spike the Hike’

The upcoming carbon tax increase is expected to be a major topic of conversation in the House of Commons next week after MPs return from their two-week break.

Conservative Leader Pierre Poilievre has promised to force multiple votes in Parliament next week to “axe the tax.”

He has described the 23 percent increase as an April Fool’s joke that no one finds funny.

“Nearly 70 percent of people oppose Trudeau’s April 1st hike and Trudeau is facing a provincial revolt as a growing number of Premiers have echoed common sense Conservatives’ demands to spike the hike, including a Liberal Premier,” Mr. Poilievre said in a March 13 press release.

“If Trudeau insists on hiking the tax on food, heating and gas, then it’s time for Liberal and NDP MPs to stand up to Justin Trudeau to bring home lower prices. The ability of Canadians to put food on the table and fuel in their cars is more important than protecting Justin Trudeau’s fading political career.”

Levied by the Liberal government in 2019, Canada’s carbon tax is the price placed on the carbon content of fuels to reduce CO2 emissions. Ottawa has described the carbon tax as a necessity to achieve net-zero carbon emissions by 2050.

Carbon pricing kicked off in 2019 at $20 per tonne and rose to $50 per tonne in 2022. The price is set to rise $15 per tonne every year until it eventually reaches $170 per tonne in 2030.