Good evening,
WHAT YOU NEED TO KNOW
The U.S. Supreme Court backed Trump on his travel ban targeting Muslim-majority countries
The Supreme Court upheld U.S. President Donald Trump’s travel ban targetting several Muslim-majority countries, rejecting the argument that it represented unconstitutional religious discrimination. The 5-4 ruling, with the court’s five conservatives in the majority, ended a fierce fight in the courts, and handed Trump one of the biggest victories of his presidency.
The court held that the challengers had failed to show that the ban violates either U.S. immigration law or the U.S. Constitution’s First Amendment prohibition on the government favoring one religion over another. Writing for the court, Chief Justice John Roberts said that the government “has set forth a sufficient national security justification” to prevail.
The current ban, announced in September, prohibits entry into the United States of most people from Iran, Libya, Somalia, Syria and Yemen. The ruling affirmed broad presidential discretion over who is allowed to enter the United States, meaning the current ban can remain in effect and that Trump could potentially add more countries.
If you need a refresher on how we got to this point, and a primer on the U.S. court system, read our explainer here.
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Canadian industry fears a ‘Carmageddon’ if the auto sector is hit with U.S. tariffs
Canadian businesses say the hefty import taxes that Trump is threatening to impose on Canadian-made cars would seriously damage the country’s economy. One industry leader told the Commons Standing Committee on International Trade that a 25-per-cent auto tariff is the ultimate threat to Canada.
“Let me say this plainly: steel tariffs and retaliation measures, while significant and negative for the retail automotive market, are minimal compared to the tsunami-like economic downturn that would occur should we be subject to a 25-per-cent tariff, or even lose NAFTA,” said John White, the CEO of the Canadian Automobile Dealers Association.
The industry is urging the Trudeau government to take any step necessary to prevent this. Toronto-Dominion Bank estimated last week that a 10-per-cent U.S. import tax on car parts and a 25-per-cent levy on autos would cost Canada as much as 160,000 jobs (for subscribers).
Finance ministers from across Canada also gathered today in Ottawa to explore challenges weighing on their economies, especially U.S.-Canada issues. Manitoba’s finance minister implored the federal government to “look before you leap” when it comes to the U.S. trade dispute and retaliatory measures.
Doug Ford plans to restore controversial anti-violence measures after Toronto’s weekend shootings
Doug Ford’s government could restore funding to a controversial violence-suppression unit as Toronto reels from four shooting deaths over the weekend and a ballooning homicide count.
The weekend's violence pushed this year’s homicide count to 48, up 104 per cent over last year. In response, the Ontario PCs said they would reinstate funding to anti-violence units cut by the Liberal government in 2015. In Toronto, that task force was known as TAVIS – the Toronto Anti-Violence Intervention Strategy – a unit that was disbanded last year amid criticism for its high rate of carding in heavily policed communities. Carding is the police practice of stopping people to gather information without a reasonable suspicion of an offence.
Toronto’s police chief warned against returning to a failed approach. He said the city’s shooting statistics are roughly in line with figures posted in 2016 and reassured residents that Toronto remains one of North America’s safest cities.
Ottawa named five winning funds to receive $350-million in its latest venture-capital program
The Trudeau government has selected five fund-of-fund managers to make good on its pledge to continue supporting Canada’s venture-capital industry. The five managers will disburse $350-million on the government’s behalf to venture-capital firms (that in turn invest directly in startups):
- Northleaf Capital Partners (Toronto)
- Kensington Capital Partners (Toronto)
- Teralys Capital (Montreal)
- HarbourVest Partners LLC (Boston, Mass.)
- Hamilton Lane Advisors LLC (Pennsylvania)
This year’s five chosen fund-of-funds must ensure 60 per cent of total capital goes to Canadian venture funds, and at least 35 per cent must ultimately go to Canadian firms. In addition, the government said the five recipients promised to enhance diversity and increase the participation of women across the male-dominated venture-capital sector, a condition of winning the mandate (for subscribers).
MARKET WATCH
Canada’s main stock index rose on Tuesday, boosted by gains in the energy sector. The Toronto Stock Exchange’s S&P/TSX rose 0.59 per cent to 16,280.09.
On Wall Street, U.S. stocks rose on gains in the energy, technology and consumer discretionary sectors shaking off a sell-off from a day earlier as uncertainty surrounds global trade. The Dow Jones Industrial Average rose 0.12 per cent to 24,282.29, the S&P 500 or 0.22 per cent to 2,723.04 and the Nasdaq Composite added 0.39 per cent to 7,561.63.
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WHAT’S TRENDING ON SOCIAL
‘Never seen it this late in June’: summer snow falls in parts of Newfoundland
While June in Canada is often associated with BBQs and pool parties, some Newfoundlanders woke up this morning to a five centimetre dusting of snow. People quickly took to social media to share photos of frosted roads, lawns and patio furniture, and Environment Canada said the snowfall set a record for June 26 in Gander, N.L., where about two centimetres fell. Luckily, it doesn’t appear the snow will be sticking around – rain is expected to wash it all away Tuesday evening.
TALKING POINTS
Trans Mountain is a hot mess — and Trudeau is to blame
“The federal government’s decision to buy the Trans Mountain pipeline expansion for a whopping $4.5 billion is shaping up to be a do-it-yourself disaster of epic proportions. Not only did Ottawa overpay Kinder Morgan for a stranded asset, they’ve saddled taxpayers with it indefinitely. Brace yourselves, Canada: We now own a money pit.” - Rita Trichur (for subscribers)
Lessons from Somalia: Canada’s Mali mission must be about them, not us
“The Canadian mission in Somalia offers multiple lessons for the UN mission in Mali, but one in particular is of overarching importance. Construction of lasting peace and stability requires cultivating and sustaining the co-operation of the local people and, equally important, the long-term commitment by the international community, including international security forces.” - Grant Dawson and Serge Labbé. Dawson is author of Here is Hell: Canada’s Engagement in Somalia. Brigadier-General (Ret’d) Labbé was a Canadian Army infantry officer who commanded the Canadian Joint Force Somalia.
Why Donald Trump will never be wrong, about anything
“We need, finally, to understand that as far as Donald Trump is concerned, he never lies, even when he lies. If he says it’s so, it’s so, even when it’s demonstrably not so. Experts – elitists, by definition – can bellyache to their squishy hearts’ content about the truth. They’re wrong. They’re wrong because he can’t be wrong. He has never been wrong. He can never be shown that he’s wrong.” - Gerald Caplan, a former New Democratic Party national director.
LIVING BETTER
What to do when your luggage is lost
First, take a deep breath. A missing suitcase can be infuriating, but it doesn’t have to ruin your vacation. These five tips will increase your chances of a speedy bag recovery and compensation for your troubles. Be prepared next time you fly, and save yourself time spent staring at an empty baggage carousel.
LONG READS FOR A LONG COMMUTE
Canada’s great pot boom could be headed for a giant bust – for investors and consumers
Come this fall, pot aficionados won’t have to go to seedy parts of town or worry about cops busting in while they’re replenishing their supplies, because they’ll be able to buy cannabis legally, in licensed stores. If you believe Ottawa, the provinces and the CEOs of dozens of publicly traded pot companies, over the next few months, the black market in recreational weed will be magically transformed into a legitimate industry.
But things might not turn out according to the hype. Unless governments ease supply bottlenecks, loosen up marketing restrictions, and give legal growers and sellers of recreational cannabis a real chance to compete with unlicensed rivals, Canada’s great pot boom could be headed for a giant bust (for subscribers).
San Francisco restaurants can’t afford waiters – so they’re putting diners to work
Restaurateurs who say they can no longer find or afford servers are figuring out how to do without them. And so in San Francisco, a city of staggering wealth, you can eat like a gourmand, with real stemware and ceramic plates. But first you’ll have to go get your own silverware.
“Something has to give,” said Anjan Mitra, who owns two high-end Indian restaurants in San Francisco, both named Dosa. If customers won’t buy $20 burgers, or $25 dosas, and the staff in the kitchen can’t be cut, that something is service. “And that is what we did — we got rid of our servers,” Mitra said.
Evening Update is written by Amy O’Kruk. If you’d like to receive this newsletter by e-mail every weekday evening, go here to sign up. If you have any feedback, send us a note.