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Canada Election 2025 Live Updates: Trump Repeats '51st State' Threat and Latest News
Until January, polls suggested that the Conservative Party would handily regain power from the Liberals in any Canadian election held this year.
Trump’s Trade War
While Mr. Trump pulled back from his initial threat of tariffs on everything imported from Canada, he has imposed several measures that hit key sectors of Canada’s economy: a 25 percent tariff on automobiles, aluminum and steel, and a similar one on Canadian exports that do not qualify as North American goods under the United States-Mexico-Canada Agreement, which he signed during his first term in office. An auto parts tariff of 25 percent is scheduled to take effect on Saturday.
Last week, Mr. Trump suggested that the automobile tariffs, which are reduced based on their U.S.-made content, could be increased. He offered no specifics.
Autos and auto parts are Canada’s largest exports to the United States, outside oil and gas.
Canada Hits Back
Under Mr. Trudeau, Canada placed retaliatory tariffs on U.S. goods coming into Canada that are expected to generate 30 billion Canadian dollars, about $22 billion, in revenue over a year.
After becoming prime minister in March, Mark Carney imposed an additional 8 billion Canadian dollars, about $5.7 billion, in tariffs, including a 25 percent levy on autos made in the United States — but not on auto parts. Automakers with assembly lines in Canada will still largely be able to bring in American-made cars of those brands duty free.
The Canadian public has responded, too. Travel to the United States has declined sharply. Government-owned liquor stores in several provinces removed American beer, wine and whiskey from their shelves. As calls for boycotts of American products grew, Canadian manufacturers hurried to adorn their packaging with maple leaves and Canadian flags.
How to Handle Trump
Both Mr. Carney, who also succeeded Mr. Trudeau as the Liberal Party leader, and Pierre Poilievre, the Conservative leader and the other major contender in the election, have adopted a hard line when it comes to the U.S. president.
In a conversation with Mr. Trump, in March, Mr. Carney said that the president had agreed to begin economic and security negotiations with whoever emerges as prime minister. During those talks, Mr. Carney said during a televised debate, “the starting point has to be one of strength.”
He added: “It has to show that we have control of our own economic destiny.”
Throughout the campaign, Mr. Carney, who was a governor of the Bank of Canada and later of the Bank of England, has sought to emphasize that his background in the financial world makes him the ideal candidate to tackle both Mr. Trump and the economic challenges his tariffs pose.
When asked how he will deal with Mr. Trump, Mr. Poilievre, a lifelong politician, usually responds by saying that he will first tackle what he views as problems the Liberals have created within Canada.
“I would cut taxes, red tape and approve our resource projects so that we can get our goods to market and bring home the jobs so we can stand up to President Trump from a position of strength,” he said during the debate.
The Crisis Will Probably Get Worse
Mr. Trump’s auto tariffs had an immediate impact. A factory in Windsor, Ontario, where Stellantis makes Chrysler minivans and Dodge muscle cars, was shut down for two weeks while the company considered its options. The association of auto parts makers said that its members had already laid off several thousand workers in Ontario.
There have also been a small number of layoffs in the steel industry.
The threatened tariff on auto parts may have a profound effect. Auto parts makers employ more people than the automakers’ assembly lines. Many parts companies are small, sometimes family-owned businesses without the financial resilience of multinational car manufacturers.
Economic Ideas, but Few Details
Both leaders, but Mr. Poilievre in particular, have promoted the construction of oil and gas pipelines to make it easier to ship fuel to Europe. They have not offered any specifics about what companies, if any, are interested in those projects or how they would be financed.
Mr. Poilievre also said he would accelerate environmental reviews and consultations with Indigenous groups for natural resource projects. Environmental groups and Indigenous leaders have criticized the proposal and questioned its legality.
For the auto sector, Mr. Carney has proposed to create an “all-in-Canada” system in which cars are assembled in Canada using Canadian parts made from Canadian steel and aluminum. He has not said how he would persuade automakers to go along with the plan.
Mr. Carney has also promised to set aside 2 billion Canadian dollars to help the auto industry adjust to U.S. tariffs and vowed that the money collected from retaliatory tariffs would be used to help companies and workers disrupted by the trade war. He has not specified what that help would involve.
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One of the leading American institutes devoted to research on the Islamic Republic’s nuclear program sounded an alarm this week over the regime’s uninspected underground site in the Zagros Mountains.
Inspectors from the International Atomic Energy Agency (IAEA) have not been allowed to visit the secret site, known as Pickaxe Mountain.
The highly fortified facility is casting serious doubt on Iran’s willingness to abide by the terms of the memorandum of understanding (MOU) reached with the Trump administration. The United States, together with Israel, launched Operation Epic Fury Feb. 28, 2026, targeting Iran’s nuclear and missile capabilities.
Experts from the Washington-based Institute for Science and International Security (ISIS) argue that halting work at Pickaxe Mountain and allowing IAEA inspectors access would be a key good-faith measure to test whether Iran is prepared to abandon its pattern of deception.
OBAMA-ERA INSPECTION FLAWS IN IRAN COULD PERSIST AS EXPERTS WARN OF NUCLEAR BLIND SPOTS
A satellite image shows an overview of the Pickaxe Mountain tunnel complex in Natanz. (Vantor/Handout via Reuters)
Spencer Faragasso, a senior fellow with the group who covers Iran, North Korea, illicit trade, and nuclear issues, wrote on X: “Important update by us at @TheGoodISIS. The ongoing work at Pickaxe Mountain is deeply concerning. This work has continued steadily since at least 2020. In my view, this is a hedge by Iran in case negotiations fail — they will then have a nuclear facility in a late stage of construction. We assessed that Pickaxe is likely large enough to hold an enrichment plant.”
Iran has used facilities at Natanz, Fordow and Isfahan to enrich uranium, the key material for a nuclear weapons program.
Faragasso added, “If Iran is serious about negotiating, it should halt construction at Pickaxe Mountain as a token of good faith. But what can be expected from a regime as brutal and conniving as Iran’s?”
The institute posted a detailed analysis of new satellite imagery from late June 2026 showing continued activity at Pickaxe Mountain.
TRUMP ADMINISTRATION UNVEILS SWEEPING TERMS OF PROPOSED IRAN AGREEMENT
Vice President JD Vance prior to a meeting between the United States, Iran, Pakistan and Qatar at the Bürgenstock luxury hotel complex overlooking Lake Lucerne, Switzerland, June 21, 2026. (Fabrice Coffrini/Keystone via AP)
The institute wrote that “at Pickaxe Mountain, vehicle activity can be seen on the roads leading to the open set of Western tunnel portals, indicating that construction inside the tunnel complex, as well as hardening of the tunnel entrance, are ongoing. The MOU signed between the United States and Iran requires that Iran maintain the status quo, which should prohibit construction at any nuclear-related facility, including Pickaxe Mountain.”
In late June, the IAEA declined to answer a detailed Fox News Digital query on whether it would seek access to the Pickaxe Mountain facility. According to the satellite imagery obtained by the institute, “at Natanz, little activity can be seen. The access points to the below-ground enrichment halls have not been repaired.
“The personnel entrances remain destroyed, and vehicle entrances remain severely damaged. A single vehicle can be seen on the road outside of the Pilot Fuel Enrichment Plant (PFEP), which was destroyed in June 2025 but was later covered by Iran.”
As U.S.-Iran talks opened Sunday in Switzerland, and a dispute over who controls and monitors billions of dollars in potentially unfrozen Iranian assets emerged. (Fabrice Coffrini/Pool via Reuters)
The institute also reported, “As of June 29, 2026, there is no observed activity at Esfahan. The tunnel portals remain backfilled with dirt.” ISIS tracked developments at the Fordow site, buried inside a mountain north of the holy Islamic city of Qom.
“At Fordow, as earlier reported by the Institute, between May 10 and May 18, Iran added passive defensive measures in the form of earthen/rocky mounds and other objects on the roads leading to the tunnel entrances. The alternating placements of the piles/objects are very precise, which creates a series of chicanes, indicating they are not intended as obstructions but rather to prevent rapid ingress and egress by any vehicle toward the tunnels.”
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The institute added, “The June 21 Vantor image shows that the objects along the road remain there. The tunnel portals also remain backfilled with dirt” at Fordow.
Fox News Digital sent questions to the State Department and the Iranian Mission to the United Nations.
Published On 6 Jul 2026
The funeral procession for late Iranian Supreme Leader Ali Khamenei has begun in Tehran as authorities prepare for crowds that could rival those that turned out for his predecessor nearly four decades ago.
After lying in state for two days at Tehran’s Grand Mosalla religious complex, the body of Khamenei, who was killed on the first day of the United States-Israel war on Iran, began its journey on Monday through the capital, accompanied by large crowds of mourners, state broadcaster IRIB reported.
Authorities are hoping to avoid a repeat of the chaos that marred the 1989 funeral of Khamenei’s predecessor, Ruhollah Khomeini, which drew an estimated 10 million people, according to the state news agency IRNA.
Crowd surges during Khomeini’s funeral killed more than 10 people and injured over 10,000.
Thousands filled the Grand Mosalla on Sunday to pay their respects to Khamenei and his four family members who were killed with him on February 28 in air strikes on his office in Tehran.
Monday’s procession will be followed by similar events in the clerical hub of Qom on Tuesday and in Iraq’s holy cities of Najaf and Karbala on Wednesday, culminating in Khamenei’s burial in his hometown of Mashhad in northeastern Iran on Thursday.
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