ETA Canada News

As costs caused by extreme weather continue to rise, Canada ‘s home insurance “safety net” is beginning to crack at the edges.

Although market competition remains healthy and Canada has avoided the “coverage deserts” emerging in the United States, insurers are reducing policy coverage in various ways to adapt to the changing risk environment. Raising premiums—often at rates higher than inflation, and sometimes significantly higher—is a common practice, but experts say insurance companies are also increasingly excluding certain risks, increasing deductibles, and reducing exposure in high-risk areas.

“The Canadian market is showing early signs of tightening protection,” Morningstar DBRS said in a report last November. Although insurance companies have not completely withdrawn from certain regions, some companies have reduced the scale of their related business. “We have rebalanced in some areas with high severe weather risk,” TD CEO Raymond Chun said in a recent earnings call.

“In areas with a high concentration of risk in certain severe weather zones, we have already made appropriate adjustments.” Chun stated that the bank is shifting its growth focus to regions with lower disaster risks. Definity Financial Corp. claims to have become Canada’s fourth-largest property and casualty insurer after completing its C$3.3 billion acquisition of Travelers last month. The company is also taking steps to moderately withdraw from high-risk regions.

In an analyst call last November, CEO Rowan Saunders said the company was adjusting its business portfolio, shifting new business to areas with lower disaster risk and reducing its concentration in high-risk areas. He said that the main work of transferring high-risk exposures has been largely completed, but this will be an ongoing process.

“This is simply a matter of ongoing, good portfolio management.”

The pressure to rebalance the business portfolio has increased after costs have soared further from already high levels in recent years, especially given the record $9.4 billion in insurance payouts in 2024. But this is not a one-off event.

A TD report indicates that between 2020 and 2024, the average loss of personal property is almost double that of the previous period, while the number of catastrophic weather events averages 15 per year, far higher than the level of about two per year in the 1980s. In the report, economist Likeliel Seitlheko stated, “The increasing losses in personal property insurance claims are putting enormous pressure on Canada’s home insurance industry.”

In response to rising costs, insurance companies have increased deductibles for risks such as hail to over CAD 10,000, reduced coverage, and even removed coverage for certain risks, such as floods. Seitlheko stated, “In the worst-case scenario, some risks are simply not covered by insurance.”

Flood insurance was only introduced in Canada about a decade ago, and its availability in high-risk areas has been limited. According to data from Public Safety Canada, Quebec has the highest number of properties at risk of flooding, followed by Ontario and British Columbia.

The Insurance Board of Canada estimates that approximately 1.5 million households (about 10% of the total) are ineligible for flood insurance; for those who are, flood insurance could increase premiums by up to $15,000 per year. But David Nickerson, who studies real estate economics at Toronto Metropolitan University, says that even this figure overestimates the actual number of people who can obtain insurance. “The industry claims that 90% of Canadians have access to flood insurance. This is an exaggeration.

Considering the specific circumstances of high-risk areas and the ‘red line’ system, in reality, only about 50% of people may have effective coverage.” Nickerson stated that part of the problem lies in the fragmented and outdated risk data, which is why the federal government is investing hundreds of millions of dollars to upgrade flood maps. Although insurance companies have access to multiple information sources, they can still face the problem of over-concentration of risk. Nickerson points out that TD experienced this during the Calgary hailstorm in 2024.

“They suffered huge, huge losses, so they scaled back operations to replenish their financial reserves.” Alberta has consistently been a focal point of losses. A TD report indicates that the $3 billion worth of hailstorms and the $1.1 billion Jasper wildfires in 2024 caused the province’s industry operating costs to exceed premium income by nearly 20% that year.

Despite the challenges, Nadja Dreff, Global Head of Insurance at Morningstar DBRS, said the industry remains stable. The massive losses in 2024 served as a stress test for the industry, demonstrating that insurers were well-prepared, although this preparation largely meant raising prices.

Dreff said, “From a consumer’s perspective, especially from the perspective of personal insurance, the situation is not optimistic, right?” “Because in order for insurance companies to absorb these losses, they had to raise individual insurance premiums, and that has indeed happened. We predict that this will continue into 2026.”

Statistics Canada data shows that between 2021 and 2025, home insurance costs (combined with mortgage insurance) rose by 31%, while the overall inflation rate was 15% during the same period. The TD report points out that the increase is even higher in areas with frequent claims: British Columbia saw an average increase of 68%, and Alberta saw an increase of 58%. However, with costs continuing to rise and insurance companies needing to ensure financial stability, there is no easy solution.

Dreff said, “Everyone is doing their best, while consumers are on the receiving end.” “The only way to truly get out of this situation is for the whole society to invest in climate resilience building.”

The Insurance Bureau of Canada also called for improvements in building standards and repair methods to make homes more resistant to extreme weather. “We must put on the brakes and stop the problem from getting worse, and really take building a more resilient nation seriously,” said Liam McGuinty, Vice President of Federal Affairs at the Insurance Bureau of Canada. He said that as Canada accelerates housing construction, it is essential to avoid building in high-risk flood areas and to enhance the resilience of homes to hail and wildfires.

McGuinty stated that, based on current trends, costs will continue to rise as climate change makes weather events more extreme. “We should pay close attention to this trend. All these costs will ultimately have to be borne by a certain group, right? And the ones who ultimately bear the costs are the policyholders, the people who pay the premiums.”

Car theft in Canada is evolving into a highly organized, transnational “black market.” A recent report from the insurance industry association Équité indicates that 46,999 vehicles were stolen nationwide last year alone, resulting in losses of up to $900 million for the insurance system.

Behind these figures lies a vast network comprised of organized crime groups, Hells Angels gang members, juvenile thieves, and illegal shipping companies. Car theft in Canada is evolving into a highly organized, transnational “black market.”

A recent report from the insurance industry association Équité indicates that 46,999 vehicles were stolen nationwide last year alone, resulting in losses of up to $900 million for the insurance system. Behind these figures lies a vast network comprised of organized crime groups, Hells Angels gang members, juvenile thieves, and illegal shipping companies.

Unveiling Canada’s $900 Million Car Theft Chain: Gangs, Street Youths, and Illegal Shipping Companies According to the Toronto Star, a local English-language newspaper, Ontario is a hotspot for car theft, with 19,319 vehicles stolen last year. Thieves favoured vehicles including pickup trucks, SUVs, and high-end luxury cars such as Ferraris and Lamborghinis. “This is absolutely organized crime,” said Bryan Gast, national vice president of intelligence and investigation at the Équité Association.

Investigations reveal that car theft rings often begin with orders from overseas markets. Gast revealed that overseas buyers contact local Canadian criminals through existing channels to specify the desired car models. Subsequently, local criminal groups hire teenagers to carry out the thefts—minors, with their relatively low risk and ease of exploitation, have become a crucial link in the criminal chain. Once the vehicles are stolen, they don’t remain locally for long. They are typically sent to shipping companies controlled by criminal groups, loaded into sealed containers, and quickly shipped to overseas markets, including the Middle East and West Africa, via the ports of Montreal or Halifax.

“Criminals exploit loopholes in current regulations to register shipping companies and smuggle stolen vehicles out of the country after giving them a legal appearance. This is indeed a long-standing loophole,” Gast noted.

Last year, the Ontario Provincial Police (OPP) launched “Project Chickadee,” a operation specifically targeting these freight forwarding companies. Police executed search warrants in Toronto, Vaughan, and Etobicoke, arresting 20 people and seizing 306 stolen vehicles with a total value of approximately $25 million CAD. Those involved included shipping company executives and tow truck drivers from the Greater Toronto Area.

Even more worrying is that this car theft ring is not operating in isolation. The report points out that profits are used to support drug trafficking, illegal arms trafficking, and even international terrorism. Car theft has become a significant source of funding for organized crime.

As governments, law enforcement agencies, and industry strengthen cooperation, traditional “lockpicking and car theft” methods are evolving. Criminal groups are beginning to employ more sophisticated financial fraud tactics. Besides traditional methods such as “changing VIN numbers” (tampering with vehicle identification numbers) and dismantling and reselling parts, vehicle financing fraud has increased significantly in recent years. Criminals steal personal information or create “synthetic identities” to apply for car loans and then directly transfer or export the vehicles.

“While various parties are working together to reduce car theft rates, organized crime is turning to more sophisticated ways to maintain its funding,” Gast said.

Despite the grim situation, the latest data shows that the national car theft rate will decrease by 18% in 2025 compared to 2024. Specifically, Ontario will see a 22% decrease, Quebec a 25% decrease, Western Canada an 11% decrease, and the Atlantic region a 2% decrease. However, the vehicle recovery rate is still not ideal. The national average recovery rate is 59%.

Ontario’s is 51%, Quebec’s is 48%, the Atlantic region’s is 63%, and Western Canada’s is 73%. The Équité Association is urging car owners to be more vigilant, including installing tracking devices, using steering wheel locks, and parking their vehicles in well-lit areas or in their own driveways.

Canadian police reported a serious shooting in Tumbler Ridge, British Columbia, leaving 10 people dead, including the gunman. Tumbler Ridge Police issued a statement saying that at approximately 1:20 p.m. local time, they received a report of a shooting at Tumbler Ridge Secondary School.

Police subsequently found the bodies of six victims on school grounds, and one person died en route to the hospital from their injuries. Additionally, police found two more bodies at a residence believed to be related to the case. Police confirmed the gunman was dead, with his body found on school grounds; the preliminary cause of death is determined to be “self-harm.”

Canadian Prime Minister Mark Carney issued a statement on social media on the evening of March 10, expressing his “shock” at the serious shooting incident that occurred that day in Tumbler Ridge, British Columbia, and pledging full federal government support for the aftermath. Carney stated that he had contacted British Columbia Premier David Ibe and instructed Public Safety Minister Gary Ananda Sangari to coordinate the federal response.

According to reports, the shooting occurred at the only secondary school in Tumbler Ridge, which enrols students in grades 7-12 and has only 175 students enrolled this year. That evening, the local government issued a statement saying that the community “experienced a deeply distressing incident. We stand with all those affected and understand that many residents may be shocked, frightened, and overwhelmed.”

In fact, Canada is not the United States, and school shootings are not common there. Unlike the United States, Canada has strict gun control. Although the provinces have not eliminated the possibility of private gun ownership, they have enacted strict restrictions such as “ammunition can only be stored in designated areas.”

Private individuals carrying firearms into public places, regardless of whether they are concealed or loaded, are subject to strict restrictions. Historically, Canada, like the United States, had relatively lax gun control policies for civilians. However, the 1989 shooting at the University of Montreal in Quebec sparked a debate about gun control. A man shot and killed 14 women at the university’s engineering faculty. This incident prompted the Canadian government to implement a federal gun registration system and enact corresponding gun control legislation.

In 2012, the then Conservative government abolished the system, deeming it a waste of money and ineffective in reducing crime. At the same time, it amended the gun classification law, allowing private individuals to purchase certain types of civilian, non-automatic, fewer long guns, but without relaxing restrictions on ammunition and other aspects. The subsequent Liberal government under Trudeau, which took office, also began gun control efforts.

In 2018, it released legislative proposals seeking stricter gun control, one measure being requiring gun buyers to provide complete personal information, particularly regarding any history of violence. It also pushed for the enactment of related legislation. This included provisions such as expanded background checks, license verification, record keeping, transportation permits, and classification authority, making gun control even more stringent. Because the University of Montreal shooting occurred on campus, Canada has stricter gun control regulations on school grounds than off campus.

Prior to this incident, British Columbia had set a record of zero fatalities and zero shootings in its primary and secondary schools by 2025, making this event a widespread shock to Canadians.

Although details of the case are still under investigation, some local sociologists point out that most of Canada’s few school shootings occur in so-called “desperate towns”—small towns located in remote areas where communities and economies are in severe decline. For example, the 2016 school shooting in La Loche, Saskatchewan, Canada, occurred in a sparsely populated, high-latitude Indigenous town with a population of less than 3,000. Following the incident, a former local councillor stated that job opportunities in the town were scarce, and many people felt hopeless about their lives, despite the government’s efforts to provide support and protections with little success.

Coincidentally, the location of this school shooting is another familiar “desperate town.”

This is a young city that was born in the 1980s due to the needs of coal mining, and at its peak, it had a population of over ten thousand. However, since the closure of many local coal mines and layoffs, emerging industries such as timber processing and dinosaur relic tourism have been insufficient to fill the gap, resulting in a drop in the local population to just over 2,000.

Residents are experiencing a high incidence of mental illness due to stress caused by unemployment. Due to urban decay and severe utility shortages, local media previously reported that there had been no nighttime or weekend emergency services since September of last year. Local government officials also complained that the nearest hospital was more than 100 kilometres away, and that the city had only two ambulances, one of which was not even staffed to the minimum standard.

Data from the British Columbia Emergency Medical Services shows that from September to December 2025, one ambulance was manned 92% of the time on average, while another was manned 83% of the time. Local officials have stated that this means sometimes there are no ambulances available, or no second ambulance, “which would be a problem if something happened.” Unfortunately, their prediction has come true. Canada is sparsely populated; Statistics Canada data shows that most of the country’s population lives within 200 kilometres of the US-Canada border.

In other words, most of Canada’s landmass houses less than one-third of its population. Even in times of economic prosperity, remote communities far from densely populated areas and public attention can easily become “desperate towns.”

Once the economy declines and welfare and public spending are cut, the number of such “desperate towns” will surge, and if this is not taken seriously, public governance risks, such as routine security management, will also increase dramatically. From this perspective, how to deal with similar situations will be a long-term governance challenge that the Canadian government will have to face.

A British Columbia court recently handed down a verdict in a case involving illegal gun manufacturing and drug trafficking, sentencing a man to eight years in prison for using 3D printing technology to manufacture firearms and possessing drugs for sale. The Integrated Special Enforcement Unit of British Columbia (CFSEU-BC) confirmed that the defendant is Tyson Saverio Santolla. He had previously pleaded guilty to multiple charges, including possession of methamphetamine and fentanyl with intent to traffic, and illegal manufacture of firearms. The court formally sentenced him on Friday.

Police stated that the case dates to early 2021. At that time, the CFSEU-BC’s illegal firearms enforcement team discovered during its investigation that the individuals involved might also be involved in drug trafficking and illegal weapons manufacturing.

In May of the same year, police conducted a joint operation in Abbotsford and Aldergrove, executing search warrants at multiple locations and arresting three people, including Santora. During the operation, law enforcement officers seized a large quantity of drugs, as well as equipment related to the production of controlled substances.

Police also discovered a facility at a location where firearms were manufactured using 3D printing technology; the equipment and materials were subsequently seized. Santora was formally charged in 2023. Police have not released information on whether other arrested individuals have been charged. In a statement following the sentencing, CFSEU-BC noted that illegal firearms and drug trafficking are intertwined, posing a significant risk to community safety.

Law enforcement emphasized that it would continue to investigate similar crimes and ensure that those responsible are brought to justice.

The Vancouver Olympic Cauldron at Jacques-Paul Plaza in Vancouver will be lit to commemorate the opening ceremony of the Milan-Cortina Winter Olympics, which will be held on February 6th.

Vancouver’s Olympic cauldron was built for the Winter Olympics held in the city in February 2010. It is a rare example in the world of an Olympic cauldron that was installed away from the venues for the opening and closing ceremonies. It was preserved after the Olympics ended and is now a popular tourist attraction.

It has been customary for the light to be lit in conjunction with the opening ceremonies of Olympic Games held around the world since 2010, and it will be lit again at the opening ceremony of this year’s Milan-Cortina Olympics to wish the Canadian team good luck. Olympic-related events will also be held before the lights are turned on, creating a high Olympic atmosphere in Vancouver.

According to the Canadian Olympic Committee (COC), 207 athletes and 231 coaches and other officials will participate in the 25th Winter Olympics. The Olympic cauldron will be lit after the event, which starts at 3:45 pm on February 6th at the Vancouver Convention Centre.

Jacques Paul Plaza on the west side of It is also scheduled to be lit during the opening ceremony of the Winter Paralympics.

This ski season, many Canadian ski enthusiasts have reluctantly forgo trips to American ski resorts. Eimear O’Leary-Barrett, a data analyst from Montreal, Canada, is a regular at Jay Peak in Vermont, having missed only two ski seasons since 2010. However, following President Trump’s recent threats to annex Greenland and the release of a North American map that includes Canada as part of the United States, she has decided not to renew her Jay Peak ski resort pass for next season.

O’Leary-Barrett is not alone. Data from industry tracking firm Inntopia shows that as of January 22, winter bookings from Canada to US resorts were down approximately 41% year-over-year, while bookings from domestic US customers were down only 5%. The agency also found a significant drop in bookings from Canada within 48 hours of each controversial statement made by Trump. “Canadians are furious, like they’ve been betrayed by an old friend,” said Tom Foley, director of business intelligence at Inntopia. ”

It’s morally unacceptable to go to the U.S.” Despite Canada’s own top ski resorts like Whistler and Mont Tremblant, many Canadians holding Epic or Ikon ski passes “chase after the snow,” heading south to U.S. states like Colorado, California, and Utah, where there is more snow that year.

Some ski resorts even accept Canadian dollars at a 1:1 exchange rate with the U.S. dollar, which, based on recent rates, is equivalent to a discount of nearly 30%. Many ski enthusiasts stock up on tickets in advance during the low-price period before the ski season.

However, Steve Wright, president and general manager of Jay Peak Resort, discovered last summer that Canadian tourist renewals for the 2025-2026 ski season had plummeted by 35%. He immediately called about 100 Canadian clients to inquire, and “many were choked with tears, saying they couldn’t accept going to the United States from their conscience,” Wright said. Since Trump’s return to the White House in early 2025, US-Canada relations have deteriorated sharply. In February of last year, Trump announced a 25% tariff on Canadian goods and repeatedly stated publicly that Canada should become the “51st state” of the United States.

In response, a movement called “Elbow Up” was launched in Canada, using the iconic defensive move from Canadian ice hockey to call on Canadians to unite and retaliate by boycotting American goods and cancelling trips to the US. A survey of Canadian travel agency executives conducted by market research firm Phocuswright at the end of last year showed that 78% of respondents said their total bookings to the United States had decreased compared to the same period of the previous year.

The latest data released by Statistics Canada shows that in December 2025, the number of Canadian residents returning home by air from the United States decreased by 18.7% compared to the same period last year, to 470,000; while the number of people returning by car has declined for the 12th consecutive month, plummeting by 30.7%. The number of U.S. residents arriving in Canada by air and by car also fell by 8.9% and 9% respectively compared to the same period last year. The ongoing impact of Canadian boycotts on the U.S. tourism industry has severely affected tourism in U.S. border cities.

A report written by the Democratic minority of the Joint Economic Committee of the U.S. Congress last December showed that in 2024, Canadian tourists contributed $20.5 billion to the U.S. economy and supported 140,000 U.S. jobs. Meanwhile, the tense U.S.-Canada relations have caused significant losses for states near the U.S.-Canada border, such as Idaho, Maine, and Michigan.

In Vermont alone, according to calculations by Tourism Economics, a subsidiary of Oxford Economics, tourism accounts for 9% of the local economy, approximately $4.1 billion. Local officials stated that the decrease in Canadian tourists has resulted in a revenue loss of approximately $75 million last year. To win back lost customers, hotels and resorts are taking various measures, such as offering booking discounts, accepting Canadian dollars at a 1:1 exchange rate with the US dollar, and increasing French translation services, hoping to attract Canadians “angered” by Trump to stay. However, Tom Foley, head of business intelligence at Inntopia, is not optimistic.

“Trust has been broken and repairing it will be extremely difficult and may take a generation,” he said. “The U.S. tourism industry should not expect a short-term recovery in the Canadian market, and any business strategy must be re-planned over a 5 to 10-year cycle.”

A minor 3.7-magnitude earthquake struck Ontario’s cottage country, with residents in several areas feeling the tremors, but no damage has been reported so far.

Earthquakes Canada confirmed that the earthquake occurred before 11 p.m., with its epicentre located in Ramara, 23 kilometres east of Orillia and about 100 kilometres north of Toronto, at a depth of about 5 kilometres. More than 2,300 residents reported feeling the tremors, ranging from Toronto and even as far away as Ottawa.

Earthquakes Canada stated that earthquakes of this magnitude typically do not cause damage, and no damage has been reported so far. Many residents said on social media that after experiencing severe snowstorms and extreme cold waves, this earthquake became the region’s “latest test.” Others claimed to have heard a loud bang at the time.

The U.S. Geological Survey (USGS) measured the earthquake at magnitude 4.1.

In response to Ontario Premier Ford’s claims that Chinese electric vehicles could be used as “spy tools” and threaten Canadian national security, senior officials in the Carney government have publicly refuted these claims. On Tuesday (January 20), Federal Public Safety Minister Gary Anandasangaree stated that from the perspective of Canadian public and national security, the federal government currently has no security concerns regarding Chinese electric vehicles.

According to the local English-language media outlet, the Toronto Star, Ananda Sangari emphasized in a media interview in Ottawa that any vehicle entering the Canadian market must meet Canadian safety and regulatory standards. “I will let the Ontario Premier (Ford) express his views, but from the perspective of the federal public safety assessment, we have no such concerns,” the minister said.

However, he also acknowledged that with technological advancements, data collection capabilities have become increasingly sophisticated across various devices, including social media, artificial intelligence, and smart cars, all of which involve privacy and data issues.

“My own car has a lot of information-gathering capabilities,” Minister Ananda Sangari said, holding up his iPhone: “This device is the same.” In his view, this is a holistic technological challenge, not just for a particular country or product. This statement comes just after Canada and China reached a widely controversial trade agreement.

Following a meeting between Prime Minister Carney and Chinese leaders, Canada and China agreed to ease trade tensions: Canada will lower the 100% tariff previously imposed on Chinese electric vehicles, in line with the United States; in exchange, China will reduce tariffs on Canadian canola, lobster, crab, and peas. Under the agreement, Canada will initially allow up to 49,000 Chinese electric vehicles into its domestic market, and Chinese companies are expected to increase their investment in Canada’s automotive manufacturing industry in the coming years. However, this arrangement was quickly met with strong criticism from Ontario Premier Doug Ford.

Ford called the agreement “a very, very bad and seriously misjudged decision” that would not only impact Ontario’s auto industry but could also allow so-called “spy cars” to enter Canada and collect data for Beijing. He even warned that Chinese electric vehicles could, like smartphones, eavesdrop on and collect personal information from Canadians.

Academics and security experts have expressed relatively cautious views on this issue. Stephanie Carvin, Associate Professor of International Affairs at Carleton University, pointed out that, theoretically, connected electric vehicles do possess the technological capability to collect large amounts of data, and the cybersecurity protections of some electric vehicle systems may not even be as mature as those of mobile phones. However, she also emphasized that this is not a decisive reason to prevent Chinese electric vehicles from entering the Canadian market.

“China doesn’t need to rely on electric vehicles for intelligence activities,” she said. “They already have plenty of tools.” In her view, focusing solely on electric vehicles exaggerates their security risks. In fact, in its latest annual report, the Canadian Security Intelligence Service (CSIS) explicitly stated that China poses one of the most significant counterintelligence threats to Canada. However, the report emphasizes the overall national security environment and does not identify electric vehicles as a core source of risk.

It’s worth noting that even Carney himself, during the spring election this year, called China one of the biggest threats to Canada’s national security. However, in recent diplomatic activities, he emphasized that there is a “clear security barrier” in Canada-China relations, and that Canada will adhere to its own security principles while promoting economic and trade exchanges.

Ananda Sangari also reiterated that even if Canada adjusts its economic relations with certain countries, the work of the federal public safety authorities will not be relaxed. “The relevant scrutiny and enforcement will continue to be conducted with the same level of rigor that Canadians expect,” he stated.

Some analysts point out that the main risk posed by this electric vehicle agreement lies less in intelligence security and more in its impact on the Canadian auto industry. If Chinese automakers fail to fulfill their commitments to invest in and build factories in Canada, the domestic industry could face even greater competitive pressure.

Jim Stanford, an economist at the Canadian research institution Centre for the Future of Work, believes that even if Chinese companies intend to invest in Canada, they must simultaneously overcome U.S. security restrictions on Chinese automotive technology, a challenge that may be far greater than the tariff issue.

Prime Minister Mark Carney returned home on Wednesday (August 21) after concluding his trip to the World Economic Forum in Davos, Switzerland, without meeting with US President Donald Trump.

Earlier, on Tuesday, Carney delivered a major speech, specifically naming but directly criticizing the US president for undermining the rules-based international order. Mark Carney’s office stated at 5:30 a.m. Eastern Time that there were no scheduled meetings between Carney and Trump on Wednesday. Carney departed Davos for Zurich at approximately 8:00 a.m. Eastern Time on Wednesday and will then travel from Zurich back to Ottawa; Trump arrived in Switzerland early Wednesday morning.

Despite earlier delays on Air Force One due to power issues, Trump arrived as planned and attended the Davos Forum, where he began his speech at approximately 8:00 a.m. Eastern Time on Wednesday. Trump arrives in Switzerland to deliver a speech; Greenland plan causes market turmoil; gold prices hit record high.

In his speech on Tuesday, Carney told global political and business leaders, “The old international order is not coming back.” He emphasized that Canada “strongly opposes” using tariffs as a means of coercing Europe to make concessions in Greenland and warned that the world is during a “rupture” in the international order.

“Middle powers must work together, because if you’re not at the table, you’ll be on the menu,” Carney said. He called on middle powers to stop pretending the rules-based international system still works and instead form alliances to combat a new era of large-scale plundering of smaller nations and the arbitrariness of power.

Carney also urged countries to begin publicly condemning economic coercion, even from allies—a move widely seen as a clear indication of a move against the United States. His speech was met with a standing ovation.

These remarks came days after Trump made a rare threat, stating that Washington would impose tariffs on Greenland if European allies and the UK did not allow the US to acquire it for strategic purposes. Trump: Europe is on the wrong track; the US return Greenland after WWII was foolish, but he emphasized he has no intention of using force.

After concluding his trip to the forum, Carney will travel to Quebec City for a cabinet retreat, rather than remaining in Davos. International Trade Minister Maninder Sidhu explained to reporters that the government decided not to stay and had not scheduled a meeting with Trump.

“Parliament will reconvene next Monday, and we also have a cabinet retreat; there are many things that need to be addressed for Canadians,” he emphasized. “What we hoped to accomplish in Davos, we have accomplished.”

When asked why Carney didn’t stay in Davos to meet with Trump, Sidu responded that the government’s current focus is on diversifying trade markets. Canada and the US are preparing to review the Canada-Mexico-Canada Agreement (CMCA), with the US expected to request renegotiation of certain chapters; meanwhile, several high tariffs continue to impact Canadian industries such as steel and automobiles.

Carney is also a frequent guest at the World Economic Forum, having attended approximately 30 times, according to his office. Following last week’s efforts to mend tensions with China, Carney also plans to visit India soon to repair bilateral relations. Sidu stated that negotiations for a Canada-India free trade agreement will begin in February.

“India’s annual growth rate is around 7%, they need food and energy, which we can provide,” Sidu said. He added that the United States remains crucial to Canada, “Our geographical location will not change,” but emphasized that Canada is looking globally, “China is our second-largest trading partner, India will become the third-largest economy, and we are looking for opportunities globally.”

Regarding why Canada is trying to improve relations with India, Sidu reiterated Carney’s position: “We must accept the world as it is, not as we wish it to be. Ultimately, we must find opportunities for Canadians.”

The latest data from European climate agencies shows that the past year was the third warmest on record, with global warming approaching a critical climate threshold. The Copernicus Climate Change Service indicates that the global average temperature in 2025 will be about 1.47 degrees Celsius higher than pre-industrial levels, second only to the previous year’s record of about 1.6 degrees Celsius. Including 2023, this marks the first time on record that the average temperature has risen by more than 1.5 degrees Celsius for three consecutive years. The agency warned that, at the current rate, the long-term warming ceiling of 1.5 degrees Celsius set by the 2015 Paris Agreement could be reached before the end of this decade, about ten years earlier than originally predicted. The impact is particularly pronounced in Canada.

As snow and sea ice disappear at an accelerated pace, the “natural barrier” that normally reflects sunlight weakens, allowing vast land and sea areas in the north to absorb more heat, causing Canada to warm faster than the global average. Canada experienced its second-worst wildfire season on record in 2025, second only to 2023, and marking the third consecutive year of exceptionally active fires.

Preliminary data shows that the country burned approximately 89,221 square kilometres throughout the year, equivalent to the land area of Portugal. During the fire season, several regions were raised to the highest alert level, thousands of residents needed to be evacuated, and the government also deployed international firefighters for assistance.

Wildfire expert Mike Flannigan, a professor at Thompson Rivers University in British Columbia, points out that the area burned in the past decade is more than three times that of the early 1970s, and climate change is one of the main reasons. Rising temperatures not only lengthen the fire season but also make thunderstorms and lightning more frequent and forest vegetation drier, creating conditions for large-scale fires. Rising temperatures are also fuelling stronger and more unpredictable storms, causing massive economic losses in Canada.

The Catastrophic Loss Mitigation Institute estimates that Canada currently suffers an average of $9.2 billion in disaster losses annually, covering both insured and uninsured losses. Since the early 1980s, adjusted for inflation, these losses have increased by an average of 9.3% annually, far exceeding the growth rates of population, GDP, and construction spending. The institute points out that climate change is not the only factor, but it has significantly increased the probability and destructive power of extreme events.

In less than a month in 2024 alone, Canada experienced four of the ten most expensive disasters in history, including the Calgary hailstorm, the remnants of Hurricane Debby, the Jasper wildfires, and the floods in southern Ontario. Insurance costs have also risen accordingly, with home insurance premiums in some of the hardest-hit areas of British Columbia increasing by nearly 68% between 2021 and 2025. The increasing number of days with extreme heat poses a direct threat to public health.

Toronto family physician Samantha Green, president of the Canadian Association of Physicians for the Environment, points out that prolonged periods of intense heat, especially without nighttime cooling, can worsen chronic diseases such as heart, lung, and kidney conditions, posing a particularly high risk to the elderly and outdoor workers. During a heatwave last August, Montreal Public Health received three suspected heat-related deaths. Toronto also issued six heat warnings during the summer, during which time it recorded 74 emergency room visits related to heatstroke.

Climate models indicate that by the middle of this century, the number of days with temperatures exceeding 30 degrees Celsius per year in both cities may increase by at least 20 days compared to the end of the 20th century.

Data also shows that sea ice extent in both the Arctic and Antarctic has repeatedly hit record lows. In February of this year, global sea ice coverage fell to its lowest level since satellite records began in the late 1970s. Canadian government data indicates that since records began in the late 1960s, summer sea ice extent in northern waters has decreased by approximately 7% every decade. The estimated summer sea ice extent in 2025 is approximately 920,000 square kilometres, which, while not reaching a historical low, is a level only seen in the past 20 years.

Research generally suggests that the Arctic Ocean may experience almost ice-free summers around the middle of this century. Climate change is also impacting the cost of daily life. Mike von Massow, a food economist at the University of Guelph, describes coffee prices as an “early warning sign” of climate change effects.

High temperatures, unstable rainfall, and increased disease are putting pressure on coffee production, pushing up prices in Canada. Statistics Canada data shows that coffee prices rose 27.8% year-on-year in November 2025. He pointed out that long-term food price increases can often be traced back to agricultural production conditions that deteriorate due to extreme weather, including abnormal weather in Southern California that drove up lettuce prices and drought that increased feed costs, which in turn affected beef prices.

In summary, last year was the third warmest year on record, serving as a global warning sign and clearly reflecting how climate change is reshaping Canada’s reality on multiple levels, from the natural environment and public safety to health and people’s livelihoods.