Canada Is Getting a Gas Tax Holiday

Canadian Prime Minister Mark Carney suspended the fuel tax in response to the Iran war in his first act after securing a majority government. Carney said Tuesday that with fuel prices increasing sharply, he is suspending the federal fuel excise tax on gas, diesel, and aviation fuel from next Monday until Labor Day, Sept. 7. He called it a "responsible, temporary measure" that will also reduce costs for truckers and businesses, the AP reports. The move will reduce the cost of gas by about 10 Canadian cents a liter, reports the CBC. That works out to around 27 American cents per gallon.

• "We all know that because of the war with Iran fuel prices have increased sharply around the world including right here in Canada," Carney said, describing the move as a way to help Canadians through "short-term pressures." He said it will cost around $2.4 billion Canadian, or $1.7 billion US.
• The price of gas in Canada has surged more than 25% since the war began, the New York Times reports. Canada is a major oil exporter, and Carney said his government would invest in infrastructure to lessen the impact of future price shocks. "To make Canada more energy secure and less reliant on external factors, our government is advancing major projects to realize Canada's full potential in clean and conventional energy," he said.

• Carney's Liberals now have 174 of the 343 seats in the House of Commons and won't need support from opposition parties to pass legislation after winning three districts that became vacant after last year's election.
• Carney's government is the first in Canada's history to switch from a minority to a majority between national elections. The Liberal Party could stay in power until 2029 after Monday's results. Carney said he wants to focus on affordability, housing and accelerating major economic projects. "Voters have placed their trust in our new government's plan," he said.
• Carney won Canada's election last year, fueled by public anger over President Trump's annexation threats. He has vowed to reduce Canada's reliance on the US.
• On Tuesday, Carney met with Finnish President Alexander Stubb. The two men took to the ice to practice with the Ottawa Charge hockey team.
• "I think Finns and Canadians are quite similar," Stubb told the CBC. "We're cool, calm and collected except in the ice hockey rink. And then when the going gets tough, we go to the sauna and take an ice bath and calm down." He said that's one of the reasons he can imagine Canada joining the EU. "I think Canada in terms of its whole composure, its value base, is so close to the European Union that the least we can do is to forge a really close strategic partnership," Stubb said.