Canada's prime minister suspends fuel tax in first act after securing majority government

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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.

Carney's Liberals now have 174 of the 343 seats in the House of Commons and won't need support from opposition parties to pass legislation after winning three districts that became vacant after last year's election.

Carney’s government is the first in Canada’s history to switch from a minority to a majority between national elections.

The Liberal Party could stay in power until 2029 after Monday’s results.

Carney said he wants to focus on affordability, housing and accelerating major economic projects.

“Voters have placed their trust in our new government's plan," he said.

Carney won Canada’s election last year, fueled by public anger over U.S. President Donald Trump’s annexation threats. He has vowed to reduce Canada’s reliance on the U.S.

Five defections from opposition parties, including four from the main opposition Conservative party, later put Carney’s Liberals on the cusp of the majority.

One of those defectors referenced Carney’s 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.

Carney, the former head of the Bank of England as well as Canada’s 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 Carney’s 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.