Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning retailers. Every Monday, we break down the most important updates in this space in under five minutes.

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Start Date: 2025-05-25
End Date: 2025-05-31

Canadian Federal GR News

Federal Government Introduces Motion for Tax Relief, GST Changes, and Full Removal of Consumer Carbon Price

On May 27, 2025, the Minister of Finance, François-Philippe Champagne, tabled a Ways and Means Motion in Parliament introducing measures aimed at reducing costs for Canadians. The proposals include a middle class tax cut expected to offer relief to nearly 22 million Canadians, with families projected to save up to $840. The measures also propose eliminating GST for first-time homebuyers on new homes valued up to $1 million, which could result in savings of up to $50,000, and lowering GST for new homes valued between $1 million and $1.5 million. The Motion also includes the removal of the consumer carbon price from law, following its cancellation effective April 1, 2025. Legislative amendments would repeal the federal fuel charge framework in four phases, allowing compliant parties to claim eligible rebates through specific dates and ultimately winding down the Greenhouse Gas Pollution Pricing Act (GGPPA) by April 2035. These measures are positioned within a broader effort to reduce taxes and lower cost pressures for households. Certain transitional arrangements will apply to railway operators and rebate claimants, as set out in the schedule.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Labour Market Ministers Advance Pan-Canadian Labour Mobility Initiatives

The Forum of Labour Market Ministers (FLMM), co-chaired by Federal Minister Patty Hajdu and Nova Scotia's Minister Nolan Young, convened virtually on May 27 to review progress on labour mobility as a tool in offsetting tariff effects and expanding free trade benefits within Canada. Ministers noted that some jurisdictions have introduced expedited timelines and new initiatives to reduce administrative hurdles. Work continues on the development of a Canada-wide credential recognition plan, coordinated with the Committee on Internal Trade, and jurisdictions aim to provide a targeted update by June 1, 2025. Ministers discussed potential consultations and additional collaborative opportunities with other government tables on linked issues, including occupational health and safety training. The meeting reaffirmed the importance of Labour Market Transfer Agreements and flagged ongoing pressure for additional federal funding to modernize these arrangements.

Sources: Announcements: www.canada.ca

Government-Backed Team Canada Trade Mission Strengthens Business Ties in the Indo-Pacific

Canada concluded a Team Canada Trade Mission (TCTM) to Thailand and Cambodia, led by Sara Wilshaw, Chief Trade Commissioner and Senior Assistant Deputy Minister, International Trade, Global Affairs Canada, on May 30, 2025. The mission included over 150 delegates representing more than 90 Canadian organizations, notably 80% being small and medium-sized enterprises, with a focus on business opportunities in Southeast Asia. The mission facilitated business-to-business sessions, with several meetings involving Thai and Cambodian officials, such as Dr. Nalinee Taveesin and Sun Chanthol. The delegation discussed trade priorities, supply-chain resilience, and progress towards a free trade agreement with the Association of Southeast Asian Nations (ASEAN). Canada marked an expanded commercial presence in the region, including the establishment of a full embassy in Phnom Penh in March 2025 and the opening of Export Development Canada’s 12th representation in Bangkok.

Sources: Announcements: www.canada.ca

CFIA Outlines Response to Avian Influenza Outbreak at a British Columbia Ostrich Farm

The Canadian Food Inspection Agency (CFIA) detailed actions at an ostrich farm in British Columbia following detection of highly pathogenic avian influenza (HPAI) H5N1, as of May 31, 2025. The ostrich operation, Universal Ostrich Farm, did not comply with the requirements set out under the Health of Animals Act, resulting in penalties totaling $20,000 for violations including unreported cases and failing to adhere to quarantine measures. CFIA confirmed the infection as a novel reassortment, including the D1.3 genotype, which has been associated with previous human infection in the US. Actions are proceeding under the stamping-out protocol, a standard that enables Canada to maintain export market access for poultry products. Judicial reviews by the operator to block disease control orders were dismissed on May 13. CFIA is continuing with humane depopulation plans under veterinary oversight, with ongoing monitoring to mitigate risks to animal and public health, as well as to maintain Canada’s $1.75 billion in poultry exports.

Sources: Announcements: www.canada.ca

Statistics Canada: Wholesale Trade Declines 0.9% in April; Foodservice Sales Climb in March

Statistics Canada issued early indicators for April 2025 showing a 0.9% decrease in wholesale trade sales, after excluding petroleum products and grain. The dip is attributed primarily to lower results in the motor vehicle and motor vehicle parts and accessories subsector. Separately, total sales in food services and drinking places rose 1.8% in March 2025 to $8.4 billion. These shifts may provide perspectives on trends in inventory, product sourcing, and distribution for wholesale and retail operators.

Sources: Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca

Couriers and Messengers Services Price Index Updated for April

The Couriers and Messengers Services Price Index for April 2025 is now available from Statistics Canada. The dataset provides updated cost benchmarks for shipping and delivery services, covering pricing for ground and air segments used by retail and logistics firms.

Sources: Open Government Data Set: www.statcan.gc.ca

US Federal GR News

President Trump's Industrial Policy Actions Spur New Investments Across U.S. Manufacturing Sectors

President Trump, during a visit to Pennsylvania on May 30, promoted a $14 billion partnership between U.S. Steel and Nippon Steel, projecting the creation of 70,000 jobs and a reinforced domestic steel supply. The White House reports that a series of 'America First' trade policies has led to announcements of major investments from automakers such as Stellantis, General Motors, Volkswagen, Toyota, and others in US facilities. Technology companies including NVIDIA, IBM, Apple, and TSMC have also launched U.S.-focused initiatives, while pharmaceutical and energy firms have detailed sizable expansions. Additional foreign capital commitments from the UAE, Japan, and Saudi Arabia are cited, supporting a broader manufacturing and consumer market investment surge.

Sources: White House Announcements: www.whitehouse.gov

White House Touts Economic Growth as Consumer Confidence Surges and Trade Deficit Narrows

Consumer confidence, as measured by the Consumer Confidence Index, recorded its largest monthly jump in four years in May 2025, according to White House releases and supporting Bloomberg coverage. The period's economic indicators show inflation dropping to 2.1% in April, below expectations, with personal incomes climbing by 0.8%. The trade deficit recorded its largest single-month decline on record, sharply influenced by changes in goods movement and recent tariff adjustments. These trends are being linked to recent federal efforts targeting inflation and supply chain stability.

Sources: White House Announcements: www.whitehouse.gov, White House Announcements: www.whitehouse.gov

Proposed 'One, Big, Beautiful Bill' Advances Tax Reform, Industry Incentives, and Regulatory Relief

The White House detailed the proposed 'One, Big, Beautiful Bill,' which Congressional proponents say would introduce expanded wage increases, support for domestic manufacturing, and targeted tax relief. The bill extends measures from the 2017 Tax Cuts and Jobs Act and features provisions for eliminating taxes on tips and overtime, offering temporary full expensing of new factories, and reducing tax rates for U.S.-based manufacturing. Industry groups, including the National Restaurant Association and Association of Equipment Manufacturers, have issued statements backing the bill for its potential impact on family-owned businesses, restaurants, and manufacturers. The Joint Committee on Taxation has noted shifts in the federal tax burden to higher earners. The bill also includes school choice, border security, and infrastructure funding, and awaits Senate consideration.

Sources: White House Announcements: www.whitehouse.gov, White House Announcements: www.whitehouse.gov

CBP Seeks Comments on Expanding the Global Business Identifier Test for Supply Chain Traceability

U.S. Customs and Border Protection (CBP) published a 60-day notice on May 28, 2025, requesting comments regarding an extension and revision of the Global Business Identifier (GBI) Test. The GBI pilot allows voluntary enrollment for U.S. importers to submit global identifiers (such as LEI, GLN, DUNS, and the new Altana ID) for key supply chain actors including manufacturers, exporters, and intermediaries. Programming changes under consideration seek to allow more flexible provision and updates to identifiers, aiming for enhanced supply chain traceability. CBP will determine whether to propose regulatory amendments making this identifier system mandatory for certain import processes.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Saskatchewan Alters Beer Markup Structure for Small and Medium-Sized Breweries

Effective July 1, 2025, Saskatchewan will implement changes to beer markup rates, providing a more gradual scale for small and medium-sized breweries. The qualifying capacity threshold increased from 400,000 to 500,000 hectolitres.

Sources: Provincial Announcement: www.saskatchewan.ca

B.C. Launches Program to Combat Property Crime in Urban Cores

British Columbia introduced the Community Safety and Targeted Enforcement (C-STEP) initiative, allocating up to $5 million in funding to support police operations addressing street crime, shoplifting, and downtown safety challenges affecting businesses.

Sources: Provincial Announcement: news.gov.bc.ca

Ontario Imposes Fine for Unlicensed Livestock Trading

An Ottawa-area individual was fined $1,250 in May 2025 after pleading guilty to dealing in livestock without a license, following an investigation by the Ontario Ministry of Agriculture, Food and Agribusiness.

Sources: Provincial Announcement: news.ontario.ca

Manitoba Advances Legislation to Remove Internal Trade Barriers

On May 29, 2025, the Manitoba government announced Bill 47, targeting the removal of trade barriers for goods and services between Manitoba and other provinces. The bill acts on recommendations from the Premier’s Business and Jobs Council.

Sources: Provincial Announcement: news.gov.mb.ca

Quebec Modernizes Process for Reporting Non-Compliant Milk Prices

Quebec’s Régie des marchés agricoles et alimentaires launched a new online complaint form for reporting non-compliant consumer milk prices, making it easier for consumers to file reports to MAPAQ since May 30, 2025.

Sources: Provincial Announcement: www.quebec.ca

Public Officials' Social Media

On May 29, 2025, MP Branden Leslie commented on rising crime and retail theft, noting support for police crackdowns and calling for strengthened penalties for repeat offenders.

Sources: Social Media: x.com

On May 25, 2025, MP Rechie Valdez stated on Twitter that innovative small and medium-sized businesses are seeking less regulatory paperwork, quicker approvals, and increased innovation support.

Sources: Social Media: x.com

MP Dan Albas on May 26, 2025, remarked on consumer-directed finance (open banking), observing a lack of similar approaches in the Canada Revenue Agency’s data policies.

Sources: Social Media: x.com

MP Chrystia Freeland, on May 29, 2025, posted about work at the Committee on Internal Trade to simplify the sale of goods—including alcohol—and to facilitate recognition of Canadian workers’ skills nationwide.

Sources: Social Media: x.com

Senator Amina Gerba, on May 27, 2025, referenced the Speech from the Throne as a reaffirmation of tax relief for the middle class, affordable housing, and efforts to remove interprovincial trade barriers.

Sources: Social Media: x.com

What We're Reading This Week

• Market Analysis: May 26th, 2025: Overview and forecasts for Canadian retail equities following market shifts in Q2.