Threats to B.C. LNG industry are a made-in-Canada problem

A made-in-Canada problem

Photo: LNG Canada.

Phase 1 of is in early stages of commissioning, with first exports expected this summer

Now that U.S. President Donald Trump is throwing the full weight of the White House behind a $63 billion pipeline and LNG project in Alaska—which would compete for market share in Asia—Canada must confront a challenge of its own making.

If the country can’t address a “complex web” of climate and energy policies that could make Canadian LNG projects uneconomic, it will forgo billions in energy sector investments, according to industry analysts and insiders.

In particular, the B.C. government may need to rethink its policy that requires new liquefied natural gas projects to be net-zero by 2030—a restriction that puts billions in potential investments at risk.

In a March 11 interview with Mark Fitzgerald, CEO of Petronas Canada—a 25-per-cent owner in LNG Canada—Peter Tertzakian, deputy director of the ARC Energy Research Institute, warned: “The path we’re on is not net-zero by 2030—it’s zero by 2030, because we’re not going to get anything built.”

Ian Archer, an expert in the North American natural gas market for S&P Global, doesn’t think the Alaskan LNG project Trump is now pushing poses the biggest competitive risk to B.C. LNG projects. The risks, he says, are home-grown.

“Canadian regulatory and environmental complexities are greater than nearly every other LNG producing region, and they have been the main reasons for the slow pace of LNG development in Canada,” Archer said. “So yes, the threats to LNG development are almost entirely a made-in-Canada problem.”

Of the $50 billion in shovel-ready energy projects in Canada, half—or $26 billion—are LNG projects, according to the Canadian Association of Petroleum Producers (CAPP).

Phase 1 of LNG Canada, the country’s first large LNG project, is now in the early stages of commissioning, and early work is underway on the smaller Cedar LNG and Woodfibre LNG projects.

Final investment decisions are expected this year on LNG Canada Phase 2, and the Ksi Lisims LNG project near Prince Rupert is currently under environmental review.

With Canada now in a trade war with the U.S., there is a growing urgency to attract investment and to grow new markets for Canadian commodities such as natural gas—most of which is currently exported to the U.S. and which may now face a 10-per-cent tariff.

The biggest barrier to investment in Canada is a costly and sclerotic regulatory environment.

When it comes to LNG exports, Western Canada has two significant advantages: The Montney formation—the second-largest natural gas basin in North America in terms of proven reserves, according to Shell’s 2025 LNG Outlook—and proximity to Asia, which lowers shipping costs.

But Alaska has the same proximity advantage, and the proposed Alaska LNG project has full U.S. federal and state government support.

The Alaska LNG project is being advanced by the state-owned Alaska Gasline Development Corp. (AGDC), and is backed with US$31 billion in federal loan guarantees, and annual 45Q tax credits of US$600 million per year (US$6 billion in total).

Alaska has been trying to advance the project for a decade now, but its enormous costs have been the barrier to its development.

“Alaska LNG faces several hurdles, the largest being cost,” Archer said. “Although the $31 billion loan guarantee is a huge number, the estimated cost of the project … is probably closer to $50 billion. That’s an enormous amount for nearly any oil major, so it would have to be built with a combination of federal money and a corporate consortium.”

On January 20, Trump signed an executive order to “prioritize the development of Alaska’s liquified natural gas potential,” and has been pressing Japan and South Korea into becoming customers for Alaskan gas.

Also in January, AGDC signed an agreement with the Glenfarne Group to lead and fund the US$44 billion ($63 billion) project, according to Reuters.

“AGDC and Glenfarne appreciate President Trump’s vocal advocacy for Alaska LNG, which will enhance the world’s energy security and narrow our trade deficit,” AGDC spokesman Tim Fitzpatrick said in an email to BIV. “There is tremendous momentum behind Alaska LNG from potential offtakers, financiers, and other partners eager to participate in this national energy infrastructure priority.”

Should the project ever get financed, it would produce 20 million tonnes per annum of LNG. LNG Canada Phase 1 will produce 14 million tonnes per annum, and 26 million if Phase 2 is sanctioned.

In total, if all LNG projects under construction or in development in B.C. are built, B.C.’s total LNG export capacity would reach 47.5 million tonnes per annum, according to the Canadian Energy Regulator.

There are concerns that Alaskan LNG could eat into B.C.’s potential market share in Asia, although recent outlooks suggest there will be plenty of demand there.

In its 2025 outlook, Shell forecasts global demand for LNG could grow by about 60 per cent by 2040, with the growth driven largely by coal-to-gas switching in China and South Asia. That’s a 10-per-cent increase over Shell’s 2024 outlook.

But there are growing concerns that, despite its advantages, B.C. could cede Asian market share to the U.S., Australia and Qatar if building new LNG export terminals in B.C. simply becomes too risky and costly.

B.C.’s big advantage as a potential major LNG player is the Montney formation straddling B.C. and Alberta. It has an abundance of gas and liquids, and production costs are low.

“It is, without question, competitive against any of the shale or resource development plays in the United States, in terms of cost of supply,” Fitzgerald said. “The cost of supply for us in the Montey is very, very low.”

But federal and provincial energy and climate policies, like industrial carbon pricing and oil and gas emissions caps, could erode that cost advantage.

“The carbon tax is a material component of our cost structure in Canada,” Fitzpatrick said. “We don’t have that anywhere else in the world. And so it creates economic challenges for us. I understand and appreciate basis behind it, but it does not help investment in Canada.”

Federal Conservative leader Pierre Poilievre last week said a Conservative government would eliminate federal industrial carbon pricing, and leave industrial carbon pricing up to the provinces.

Another concern for the industry is the federal government’s proposed new greenhouse gas emissions cap for oil and gas. The Conference Board of Canada has warned the caps will squelch production, and Canada’s Parliamentary Budget Officer appears to agree.

“To achieve the legal upper bound, we estimate that production in the upstream oil and gas sector will need to be reduced by 4.9 per cent over 2030 to 2032 relative to projected levels in our baseline scenario,” PBO Yves Giroux said in a recent assessment.

B.C. has its own emissions cap, as well as new restrictions specific to LNG projects that will require them to be net zero by 2030. Projects like LNG Canada, Cedar LNG and Woodfibre LNG are exempt from that requirement, as they were approved prior to the adoption of B.C.’s “new energy action framework.”

But all projects “in or entering” the BC Environmental Assessment process, including Ksi Lisims LNG, will need to “pass an emissions test with a credible plan to be net-zero by 2030.”

For projects that cannot physically achieve net-zero emissions by 2030, there are offset options, which would increase costs for developers—costs they would not face in competing jurisdictions like the U.S.

In response to tariff threats from the U.S., Premier David Eby recently pledged to fast-track energy projects in B.C. Asked if that was a strong enough signal for investors contemplating investments in B.C. LNG projects, Fitzgerald suggested the industry may need something a little stronger.

“We haven’t seen anything, as of yet, that would indicate to us that there’s a change in policy or carbon tax environment or royalties or anything that would incentivize us to do the project on the West Coast,” Fitzgerald said.

“LNG [Canada Phase] 2 is a project that all of us want to do—there is no question. I think there’s various discussions and conversations that will continue to go on in terms of feasibility of design, emissions intensity, how do we meet the province of British Columbia’s requirement for net-zero 2030.”

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Nearly half of small businesses do not see U.S. as a reliable partner: CFIB

U.S. a reliable partner?

Photo: THE CANADIAN PRESS/Rob Gurdebeke

Canadian and American flags fly near the Ambassador Bridge at the Canada-USA border crossing in Windsor, Ont. on Saturday, March 21, 2020.

A new report by the Canadian Federation of Independent Business says 47 per cent of small businesses do not consider the U.S. a reliable trading partner.

The business group says the disruption caused by U.S.-Canada tariffs is causing business owners to shift suppliers and investments to domestic and international markets other than the U.S.

CFIB says small businesses are promoting Canadian-made products, delaying and/or cancelling expansion plans and exploring international alternatives, but only three in 10 say they are confident their actions will help offset the impact of the trade war.

The report says 32 per cent of business owners have already shifted to suppliers and markets within Canada, while 27 per cent plan to increase their investment in Canada.

CFIB president Dan Kelly says small business optimism is at historically low levels.

He called on the federal political parties for commitments to eliminate the remaining internal trade barriers and reduce taxes on small businesses.

Ski-Doo and Sea-Doo maker BRP reports Q4 loss, revenue down from year ago

BRP reports Q4 loss

Photo: The Canadian Press

Signage is seen on the offices of Bombardier Recreational Products Inc. (BRP) in Montreal, Monday, March 24, 2025.  

BRP Inc. reported a fourth-quarter profit loss compared with a profit a year earlier as its revenue fell and it took an impairment charge on its marine business that it has put up for sale.

The Ski-Doo and Sea-Doo maker also says that because of the ongoing global tariff disputes and the uncertainty surrounding trade regulations it has decided to defer providing financial guidance for its 2026 financial year.

It says the uncertainty has hurt consumer demand, making it difficult to offer reliable projections.

The comments came as BRP reported its fourth-quarter loss amounted to $44.5 million or 60 cents per diluted share for the quarter ended Jan. 31. The result compared with a profit of $302.8 million or $3.95 per diluted share a year earlier.

On a normalized basis, BRP says it earned 98 cents per diluted share in its latest quarter compared with a normalized profit of $2.78 per diluted share a year ago.

Revenue for the quarter totalled $2.1 billion down from $2.6 billion in the same quarter a year earlier as BRP saw softer demand.

Nissan's new CEO says the Japanese automaker will move faster to achieve a turnaround

Faster turnaround sought

Photo:Nissan Motor Corp. via AP

In this photo provided by Nissan Motor Corp., Ivan Espinosa, who will become the chief executive at Japanese automaker Nissan in April, speaks at the Nissan Technical Center in Atsugi, Japan, Wednesday, March 25, 2025. 

The chief-executive-to-be at money-losing Japanese automaker Nissan is determined to speed up decision-making to come up with models that say Nissan — and really sell.

Ivan Espinosa, 46, chief planning officer and a Mexican with two decades of experience at Nissan Motor Corp., told reporters in embargoed comments for Wednesday that the company's corporate culture is “lacking empathy” and has to change.

“We need to work together as one single team,” he said at the Nissan Technical Center in Atsugi city on the outskirts of Tokyo. “We need to work together hand in hand.”

Nissan recently appointed Espinosa to take its helm, effective April 1, replacing Makoto Uchida.

Espinosa has his work cut out for him as the maker of the Sentra sedan and Infiniti luxury cars faces yet another crisis, which began decades ago when Carlos Ghosn was sent in by French alliance partner Renault to save it from the brink of bankruptcy.

Ghosn was arrested by Japanese authorities in 2018 on financial misconduct allegations but jumped bail and is now in Lebanon.

Uchida, chief since 2019 when Ghosn’s successor Hiroto Saikawa resigned over a separate money scandal, stepped down after the company projected a loss for the fiscal year through March.

Espinosa expressed an openness to partnerships, including with parties outside the auto industry, although he declined to give specifics.

Nissan recently ditched talks with Japanese rival Honda Motor Co. to set up a joint holding company. They will continue to cooperate on technology development.

Espinosa repeatedly came back to the importance of being nimble. New cars will be developed in 37 months, and offshoot models within 30 months, he said.

Auto production, starting with design and culminating in product tests, takes several years. Bringing a product to market in 30 months would be relatively quick for the industry.

To showcase its turnaround plans, Nissan showed an array of models rolling out in the next two years for the U.S., Europe, Japan and other markets, some of them as mockup models.

Espinosa and other officials promised a lineup that highlights Nissan’s legacy, like the Leaf electric car, and models that sell in greater volumes. It’s also bringing out various ecological models, like hybrids, plug-ins and electric vehicles, and cutting-edge technology like self-driving cars.

When announcing his replacement, Uchida called Espinosa “a car guy.”

Espinosa, who drives a Z sportscar, Nissan’s flagship nameplate, said he saw himself as “a car lover.” He loves the stories behind each car, he said, like how it’s developed and becomes loved by customers.

Analysts have so far taken a cautious approach to Espinosa’s appointment. As an insider, he takes up where Uchida left off, meaning the verdict is still out.

“We view it as unlikely that Nissan would be open to becoming a subsidiary of Honda at this time, at least until the board has time to assess the effectiveness of Espinosa’s strategy, once it is unveiled and put into action,” CreditSights analysts Todd Duvick and Will Lee wrote in a recent commentary.

Renewable energy jumps to new high, powered by China solar boom

Renewable energy jumps

Photo: AP Photo/Ng Han Guan, File

FILE - Wind turbines dot the coast line along a giant solar farm near Weifang in eastern China's Shandong province on March 22, 2024. 

Installation of renewable energy worldwide hit a record high last year, with 92.5% of all new electricity brought online coming from the sun, wind or other clean sources, an international agency reports.

Nearly 64% of the new renewable electricity generated in 2024 was in China, according to Wednesday's report by the International Renewable Energy Agency (IRENA). Overall, the world added 585 billion watts of new renewable electrical energy, a 15.1% jump from 2023, with 46% of the world's electricity coming from solar, wind and other green non-nuclear energy sources.

But even that big jump does not put the globe on track to reach the international goal of tripling renewable energy from 2023 to 2030, with the world on pace to be 28% short, IRENA calculated. The goal was adopted in 2023 as part of the world's efforts to curb the increasing impacts of climate change and transition away from fossil fuels such as coal, oil and natural gas.

“Renewable energy is powering down the fossil fuel age. Record-breaking growth is creating jobs, lowering energy bills and cleaning our air,” United Nations Secretary-General Antonio Guterres said in a statement. “But the shift to clean energy must be faster and fairer.”

China added almost 374 billion watts of renewable power — three quarters of it from solar panels — in 2024. That's more than eight times as much as the United States did and five times what Europe added last year.

China now has nearly 887 billion watts of solar panel power, compared to 176 billion in the United States, nearly 90 billion watts in Germany, 21 billion watts in France and more than 17 billion watts in the United Kingdom.

United Nations climate chief Simon Stiell used the figures Wednesday to challenge Europe and other industrialized nations to catch up with China.

“As one government steps back from climate leadership, it opens up space for others to step forward and seize the vast benefits,” Stiell told European leaders in Berlin, making reference to U.S. President Trump's withdrawal from the Paris climate agreement. “The clean energy transition can be Europe's economic engine-room now — when new sources of growth are vital to buttress living standards and for decades to come.”

Stiell said the IRENA numbers show that the “global renewables boom is unstoppable” and said the market for green energy reached $2 trillion last year.

The move to renewables can grow even faster, said Neil Grant, senior policy analyst at Climate Analytics, which tracks and projects countries' climate change fighting efforts.

“If in 2024 renewables grew 15%, think how much faster they could grow with the full backing of comprehensive, credible and ambitious climate policies around the world,” said Grant, who wasn't part of the IRENA report.

Vacation home market slows after pandemic boom, but prices still rising: Royal LePage

Vacation market slows

Photo: The Canadian Press

While fewer Canadians may be looking to buy a vacation home than in years past, a Royal LePage report says prices are expected to increase this year as demand still outpaces supply in most markets. 

While fewer Canadians may be looking to buy a vacation home in some regions compared with years past, a new report says prices are expected to increase in 2025 as demand still outpaces supply across most markets.

The report released Wednesday by Royal LePage forecasts the median price of a single-family home in Canada’s so-called recreational regions to rise four per cent year-over-year to $652,808.

The national increase reflects expected price boosts in each provincial market, led by an eight per cent appreciation in Atlantic Canada to a median price of $498,852, and a 7.5 per cent increase in Quebec to $457,198.

Alberta remains the priciest province to own a recreational home, with Royal LePage forecasting a two per cent bump in the median price of a single-family property to nearly $1.3 million, followed by B.C. at $951,762 — also a two per cent increase.

Ontario comes in third at an expected median price of $647,107, which would be one per cent above 2024.

In the least expensive region, which combines Manitoba and Saskatchewan, the report forecasts the median price to go up 4.5 per cent to $310,052.

Royal LePage president and CEO Phil Soper said demand for recreational properties remains strong but balanced after three years of double-digit price growth during and after the pandemic.

He said many families still have a "deep-rooted desire" to own a vacation home and that is unlikely to change, even amid economic uncertainty and geopolitical tensions.

“The pandemic-era scramble for recreational properties, once reminiscent of a modern-day gold rush, has thankfully eased — along with the chaos of bidding wars and thin inventories," Soper said in a statement.

"While the mainstream market is more sensitive to economic shifts, demand in the recreational segment remains steadfast, even during periods of market hesitation."

In a survey of more than 150 Royal LePage real estate representatives who focus on the recreational market, 46 per cent reported demand was about the same compared with last year. Just under one-quarter reported more demand, while the same amount reported less demand.

The report noted that falling interest rates have helped sustain demand for vacation properties. Three-quarters of agents surveyed say recreational homebuyers in their region typically obtain financing, such as a mortgage or loan, when making a purchase.

One-third of respondents said supply was lower than last year while 39 per cent reported similar inventory. Despite those indications of supply falling, 55 per cent reported an increase in the average days a property has spent on the market compared with last year.

“Looking ahead, recreational property prices are expected to rise modestly, driven by ongoing supply shortages," said Soper.

"New cottages and cabins aren't being built fast enough to meet buyer demand, which will continue to support long-term price growth."

In 2024, the overall weighted median price of a vacation home increased 2.3 per cent year-over-year to $627,700. The weighted median price of a single-family waterfront property fell 3.6 per cent compared with 2023 to $1,063,400, while the price of a condominium remained flat at $431,700.

Napster sold to tech commerce company for $207 million

Napster sold for $207M

Photo: The Canadian Press

FILE- In this Aug. 2, 2006 file photo, promotional Napster stickers are seen at the Napster studio in Los Angeles. (AP Photo/Damian Dovarganes, file)

A brand that was notoriously connected to music piracy before reemerging as a subscription music service has been sold to Infinite Reality for $207 million.

The tech startup announced Tuesday it had bought Napster in hopes of transforming the streaming service into a social music platform where artists can connect with fans and better monetize off their work.

"The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It’s time to reimagine what’s possible,” said Napster CEO Jon Vlassopulos in a blog post.

Among its plans to update Napster, Infinite Reality said it will create virtual 3D spaces that will allow fans to attend concerts, and give musicians or labels the ability to sell digital and physical merchandise. Artists will also receive a wider range of metrics and analytics to better understand the behavior of platform users.

"We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what’s possible,” said Infinite Reality Chief Business Officer Amish Shah.

Napster was launched in 1999 by Shawn Fanning and Sean Parker and quickly became the first significant peer-to-peer file-sharing application. It shuttered in early 2000s after the record industry and popular rock band Metallica sued over copyright violations. Rhapsody later bought the brand in 2011 and relaunched it as a music streaming service.

Federal Court of Appeal upholds decision to boost accessibility at Air Canada

Airline accessibility upheld

Photo: The Canadian Press

An Air Canada plane takes off from Montreal-Pierre Elliott Trudeau International Airport in Montreal, Friday, Sept. 13, 2024. THE CANADIAN PRESS/Christinne Muschi

The Federal Court of Appeal is upholding a decision by the country's transport regulator that aims to boost accessibility for air travellers living with a disability.

A judicial tribunal has dismissed an appeal by Air Canada that sought to overturn a requirement to fully accommodate passengers whose wheelchairs are too large to fit through the cargo doors of some aircraft.

The ruling Friday marks the culmination of a case that has dragged on since 2016, when Tim Rose was told his power wheelchair would not fit on an aircraft, preventing him from travelling to Ohio as planned.

After a series of decisions, the Canadian Transportation Agency ruled in 2023 that Air Canada must either find passengers with disabilities a similar flight on a comparable route or swap in a plane that is capable of carrying the mobility device.

Air Canada appealed the swap-in requirement last year, but Justice Wyman Webb wrote last week the appeal court had no jurisdiction to review whether the provision caused the airline "undue hardship."

Air Canada said last year it accepted most of the agency's orders to remove barriers, including the obligation to find a plane that takes off within a day of the desired travel date, as long as the customer makes the request three weeks in advance.

WestJet pilots ask judge to nix approval of temporary foreign workers in the cockpit

Temporary foreign pilots?

Photo: The Canadian Press

Pilots taxi a WestJet Boeing 737-700 aircraft to the runway for departure from Vancouver International Airport, in Richmond, B.C., on Friday, May 19, 2023. THE CANADIAN PRESS/Darryl Dyck

Amid a global flight crew shortage, the union representing WestJet pilots has asked a judge to quash federal approval of temporary foreign workers in the cockpit.

In an application it said was filed Monday, the Air Line Pilots Association petitioned the Federal Court to declare invalid a government decision allowing temporary work permits at regional subsidiary WestJet Encore earlier this month.

The airline requested about 60 permits for pilots from India and South Africa under the temporary foreign workers program, according to the filing.

Tim Perry, who heads the union's Canadian wing, said it was not consulted and that the move could erode "safety margins" and undercut wage gains.

"Airlines that do a good job with attraction and retention do not need to turn to temporary foreign workers," Perry said in a phone interview.

"This application should never have been filed."

He also argued the government drew "improper conclusions" about the need for flight crews from overseas, and said consideration of WestJet’s request should have included discussion with the union.

WestJet said it asked the government to assess whether temporary foreign workers are needed, a necessary step before hiring from abroad can take place.

The request was made via a so-called labour market impact assessment (LMIA), which also determines if "no Canadians or permanent residents are available to do the job," according to the Immigration Department website.

"WestJet Encore has not yet hired any pilots through the LMIA process," airline spokeswoman Julia Kaiser said in an email.

The temporary foreign worker program, which allows non-permanent residents to work in Canada for limited periods, employs hundreds of thousands of people across a wide range of industries.

The federal program saw worker volumes surge over the past decade and a half — particularly in low-wage sectors — though demand dropped in the second half of last year amid new restrictions and U.S. tariff concerns.

In their lawsuit, the WestJet pilots said the federal jobs minister approved a WestJet application for 60 temporary work permits on March 10.

Employment and Social Development Canada said in an email it does not disclose information on such cases to outside parties due to privacy concerns.

"The TFW program is designed to help Canadian employers hire foreign workers to fill temporary labour and skill shortages when qualified Canadians and permanent residents are not available," department spokeswoman Liana Brault said.

US consumer confidence tumbles for the 4th consecutive month to a 12-year low

Confidence tumbles

Photo: AP Photo/David Zalubowski, File

FILE - Shoppers make their ways down an aisle lined with clothing and shoes in a Costco warehouse Thursday, Jan. 23, 2025, in Sheridan, Colo. 

U.S. consumer confidence fell for the fourth straight month as Americans' anxiety about their financial futures declined to a 12-year low amid rising concern over tariffs and inflation.

The Conference Board reported Tuesday that its consumer confidence index fell 7.2 points in March to 92.9. Analysts were expecting a decline to a reading of 94.5, according to a survey by FactSet.

The Conference Board’s report Tuesday said that the measure of Americans’ short-term expectations for income, business and the job market fell 9.6 points to 65.2.

It is the lowest reading in 12 years and well below the threshold of 80, which the Conference Board says can signal a potential recession in the near future. However, the proportion of consumers anticipating a recession in the next year held steady at a nine-month high, the board reported.

“Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” said Stephanie Guichard, senior economist at The Conference Board.

The board's survey showed that purchasing plans for both homes and cars declined. However, in somewhat of a surprise given respondents' anxiety about the future, intentions to buy big-ticket items like appliances increased. The board said that could reflect a desire to buy before Trump's tariffs kick in, leading to price increases.

While inflation has retreated from the highs during the post-pandemic rebound, it has remained above the Federal Reserve's 2% target. Those still-elevated prices, combined with President Donald Trump's announced tariffs on many imported goods, has Americans feeling sour about spending as concerns about the economy mount.

Consumers appeared increasingly confident heading into the end of 2024 and spent generously during the holiday season. However, U.S. retail sales dropped sharply in January, with cold weather taking some of the blame.

Earlier this month, the government reported that Americans modestly stepped up their spending in February after a sharp pullback the previous month.

The board reported Tuesday that consumers’ view of current conditions decreased 3.6 points to 134.5.

The consumer confidence index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.

Consumer spending accounts for about two-thirds of U.S. economic activity and is closely watched by economists for signs about how the American consumer is feeling.

Hudson's Bay likely to find lots of buyers for assets like leases, stripes: experts

Bay to find lots of buyers

Photo: The Canadian Press

Bay branded products are seen on display in the Hudson's Bay store in Toronto on Monday March 10, 2025.  

As Hudson’s Bay continues to seek ways to stabilize and restructure what little will soon be left of its ailing business, it’s opening itself up to selling its assets.

Court-approved processes meant to uncover companies that want the Bay’s most prized possessions are expected to get underway this month — and experts expect there will be no shortage of potential buyers.

Many agree the most valuable assets the company has to offload are its leases, which cover gigantic spaces in high-traffic neighbourhoods and coveted anchor tenant spots in malls.

Grant Packard, associate professor of marketing at York University, figures there will also be interest in the company's stripes branding because it's so iconic.

He imagines another Canadian brand will likely try to make an offer that keeps the stripes alive but in a smaller form, like a specialty shop.

Elisha Ballantyne, a Toronto-based retail consultant who has worked for Target, Walmart and Zellers, agrees the stripes have potential. She says a buyer could expand the branding across a whole host of other products and take advantage of the growing buy Canadian sentiment.

Possible softening of April 2 tariffs 'zero comfort' for industry leaders

'Zero comfort' for industry

Photo: Canadian Press

An employee works on the production line at the Martinrea auto parts manufacturing plant, in Woodbridge, Ont., on Monday Feb. 3, 2025. The site supplies auto parts to both Canadian and US auto plants.  

Just over a week before new U.S. tariffs are expected to come into force, Canadian business leaders say they're not optimistic that any meaningful reprieve is in the works.

"Until a tariff comes into effect and it affects the U.S. economy ... I'm not confident that anybody is going to be able to push the White House back from what it's threatening to do," said Flavio Volpe, president of the Automotive Parts Manufacturing Association.

April 2 is set to bring sweeping new reciprocal tariffs from the U.S. in addition to the tariffs on some Canadian and Mexican goods that were delayed by a month. U.S. President Donald Trump had also floated the idea of separate, sector-specific tariffs the same day.

But over the weekend, media reports suggested the reciprocal tariffs could be narrower than initially announced and that the sector-specific tariffs could be off the table for now.

However, Volpe said that with all the layers of tariffs and the stream of new announcements and threats, the reports aren't cause for optimism.

"The fact is, the president has threatened multiple layers and types of tariffs on Canada and specifically for the auto sector, and the idea that they may be willing to put some off, while still talking about putting a universal tariff on Canadian goods on April 2 is zero comfort," he said.

Volpe was in Washington, where he was conducting meetings with various departments and congressional representatives — but getting no clarity.

On Monday, Trump also said he will place a 25 per cent tariff on all imports from countries that buy oil and gas from Venezuela, as well as new tariffs on the country itself. That is also set for April 2.

The details and scope of what's coming on April 2 might shift, but wide-ranging tariffs are still expected in the coming weeks and months, said Matthew Holmes, executive vice-president and chief of public policy for the Canadian Chamber of Commerce.

"From the very beginning ... there's been nothing predictable or consistent about any of this, and that's part of the point," he said.

"The uncertainty, the constant shifting ground, that is part of the intent behind these. It's to make it more costly and less attractive to do business outside of the United States."

For industries that rely on exports to the U.S., tariffs could be a major hit as customers south of the border may choose to buy fewer goods or switch to U.S. alternatives.

Volpe said Trump is putting the auto sector, which is deeply integrated across the U.S. and Canada, at risk.

"He's putting the future of General Motors and Ford at risk," said Volpe, whose association represents the companies that supply the automakers.

Earlier in March Trump enacted tariffs on steel and aluminum, prompting a second round of retaliatory tariffs from the Canadian government.

Retaliatory tariffs are also an issue for Canadian businesses and consumers as they raise the prices on goods coming from the U.S.

At this point, it's hard to put stock in anything the new U.S. administration says, said Dennis Darby, president and CEO of Canadian Manufacturers and Exporters.

"It's very difficult to figure out where things are headed, and it's unclear whether the administration knows where it wants to go," said Darby.

"If Mr. Trump's goal was uncertainty, he's achieving it."

If Trump is considering new exemptions, Darby sees that as an admission that the administration knows how difficult tariffs will be for U.S. consumers and businesses.

Even the threat of tariffs is enough to destabilize industries on both sides of the border, said Holmes.

"It's adding cost to both markets," he said.

"It's making our market less efficient, less viable, more expensive, slower, and that really just begins to undermine the North American marketplace."