Carney suspends Canada’s fuel tax in response to Iran war

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Canadian Prime Minister Mark Carney suspended Canada’s federal fuel excise tax in what he described as a first step to address sharply rising fuel prices during the Iran war, according to an Associated Press report. The suspension begins next Monday and remains in place until Labor Day, Sept. 7, the report said.

Carney told Canadians that suspending the fuel tax was a temporary measure and said it would also reduce costs for truckers and businesses, AP reported. He framed the policy as “responsible, temporary measure,” according to the story.

Carney’s announcement came shortly after his Liberal Party secured a governing majority in the House of Commons. The report said the Liberals won three districts that had become vacant after last year’s election, bringing their total to 174 of 343 seats.

With that majority in place, Carney’s government would not need support from opposition parties to pass legislation, the report said. AP also noted that the new majority came after Canada shifted from minority to majority between national elections for the first time in the country’s history.

The report said Carney told voters he wanted to focus on affordability, housing and accelerating major economic projects. He also said voters had placed their trust in the plan of his new government.

AP reported that Carney won Canada’s election last year amid public anger over U.S. President Donald Trump’s annexation threats. It added that Carney has vowed to reduce Canada’s reliance on the United States.

The story said five defections from opposition parties, including four from the main opposition Conservative party, put Carney’s Liberals on the cusp of a majority. One of the defectors, AP reported, cited Carney’s World Economic Forum remarks in Davos, Switzerland, where Carney condemned economic coercion by great powers against smaller countries and received widespread praise.

AP also reported that Carney, formerly head of the Bank of England and Canada’s central bank, moved the Liberals toward the center-right after replacing Justin Trudeau as prime minister. Nelson Wiseman, professor emeritus at the University of Toronto, said Trump played a major factor in Carney’s rise, while Carney’s performance on the world stage helped add to his popularity.

Wiseman told AP that Canadians responded to how well Carney was received at Davos and said his travels abroad—visiting 13 countries by last September—were part of his effort to build alliances. Wiseman said world leaders want to do business with Carney.