Ottawa, May 15, 2025 – The Europe Today: Canadian Prime Minister Mark Carney chaired the first meeting of his newly appointed Cabinet on Wednesday, with affordability emerging as the central theme, according to media reports. The two-hour session marked the beginning of what is expected to be a challenging legislative agenda for the Carney administration ahead of Parliament’s scheduled return on May 26.
While pressing economic and geopolitical issues loom — including suspended electric vehicle (EV) investments, U.S.-imposed tariffs, and increasing tensions with Washington — the Cabinet’s immediate priority was clearly domestic economic relief for Canadians grappling with rising costs of living.
“Our focus is affordability. We are acting on affordability,” Prime Minister Carney affirmed in a brief statement following the closed-door meeting. However, he did not directly address reporters’ questions on other high-profile concerns, including U.S. President Donald Trump’s trade policies or the escalating threat of Alberta separatism.
Among the unresolved matters facing the new government is Japanese automaker Honda’s decision announced Tuesday to cancel its planned CAN$15 billion ($10.7 billion) investment in a Canadian EV facility — a major blow to Canada’s green industrial ambitions. The announcement follows increasing uncertainty in the global trade landscape, exacerbated by newly imposed U.S. tariffs and concerns over Canada’s multi-billion-dollar purchase of 88 F-35 fighter jets from the United States.
Finance Minister François-Philippe Champagne, who spoke following the Prime Minister, announced that the government’s first concrete measure will be a nationwide tax cut aimed at easing financial burdens on middle-income Canadians. Set to take effect on July 1, the tax relief is projected to save approximately $825 per year for an average family.
“This is the first order of business for this government,” said Champagne. “We will be there for them — for Canadian families, workers, and those who feel the pressure of rising costs.”
Despite a chorus of shouted questions from reporters on topics ranging from foreign policy to national unity, the Cabinet maintained its focus on economic relief, signaling a clear intent to address bread-and-butter issues before tackling broader geopolitical challenges.
The government is expected to outline further policy directions once Parliament resumes later this month.
