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Carney suspends Canadas fuel tax in first act after securing a majority government
Prime Minister Mark Carney arrives for a news conference in Ottawa on Tuesday, April 14, 2026. (Sean Kilpatrick/The Canadian Press via AP)2026-04-14T11:49:08Z TORONTO (AP) Canadian Prime Minister Mark Carney on Tuesday suspended the fuel tax in response to the Iran war in his first act after securing a majority government.Carney said that with fuel prices increasing sharply, he is suspending the federal fuel excise tax from next Monday until Labor Day, Sept. 7. He called it a responsible, temporary measure that also will reduce costs for truckers and businesses.Carneys Liberals now have 174 of the 343 seats in the House of Commons and wont need support from opposition parties to pass legislation after winning three districts that became vacant after last years election.Carneys government is the first in Canadas history to switch from a minority to a majority between national elections.The Liberal Party could stay in power until 2029 after Mondays results.Carney said he wants to focus on affordability, housing and accelerating major economic projects. Voters have placed their trust in our new governments plan, he said.Carney won Canadas election last year, fueled by public anger over U.S. President Donald Trumps annexation threats. He has vowed to reduce Canadas reliance on the U.S. Five defections from opposition parties, including four from the main opposition Conservative party, later put Carneys Liberals on the cusp of the majority.One of those defectors referenced Carneys speech at the World Economic Forum in Davos, Switzerland, in his decision. In that speech, Carney condemned economic coercion by great powers against smaller countries, and received widespread praise. Read More Carney, the former head of the Bank of England as well as Canadas central bank, has moved the Liberals to the center-right since replacing Justin Trudeau as prime minister.Nelson Wiseman, professor emeritus at the University of Toronto, said Trump has been a major factor in Carneys rise to prime minister, but his performance on the world stage has added to his popularity.Canadians liked seeing how well he was received at Davos and have been impressed by his travels abroad he visited 13 countries by last September in search of new alliances, investments and trade pacts. World leaders want to do business with him, Wiseman said.
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