WASHINGTON - Donald Trump's key tool for deploying tariffs faced tough questions from the conservative-led U.S. Supreme Court on Wednesday as justices considered a decision that could upend the president's plans to rapidly realign global trade.

Neal Katyal, the attorney representing businesses pushing back on Trump's tariffs, told the hearing that Trump has "torn up the entire tariff architecture."

Trump used the International Emergency Economic Powers Act of 1977, known as IEEPA, for his "Liberation Day" tariffs and fentanyl-related duties on Canada, Mexico and China.

During a nearly three-hour hearing Wednesday, the Supreme Court justices parsed the language in IEEPA — particularly the wording about the president's "power to regulate importation" — to decide whether the law allows for tariffs.

U.S.-based Ovintiv Inc. has agreed to acquire NuVista Energy Ltd. in a cash and stock deal valued at $3.8 billion.    

Through the terms of the deal, Ovintiv will acquire all of the outstanding shares of Calgary-based NuVista at an average price of approximately $17.80 per share. 

NuVista says in a press release that the purchase price implies a 21 per cent premium.  

Ovintiv, which moved its headquarters from Calgary to Denver, Colo. in 2020, says the acquisition will see it add about 100,000 barrels of oil equivalent per day from Alberta's Montney region. 

OTTAWA - The federal government unveiled plans Tuesday to shell out $73 billion for national defence by the end of the decade — a staggering sum as Canada positions itself to meet aggressive NATO spending commitments.

The defence spending plan — which is light on specifics but presents hefty dollar figures — also hints at what's in the government's promised Defence Industrial Strategy and even teases a new "sovereign space-launch capability."

Finance Minister François-Philippe Champagne's first budget touts a towering topline figure of $81.8 billion on a cash basis over five years to build up the Canadian Armed Forces.

That amount includes $9 billion in spending Prime Minister Mark Carney already announced in June so that Canada can finally meet its NATO commitment of spending the equivalent of 2 per cent on GDP this year.

OTTAWA - The Carney government laid out plan to cut the foreign aid budget to a level in line with Canada's pre-pandemic allocations — despite promising during the election not to cut back aid.

Tuesday's budget forecasts $2.7 billion in cuts over four years, which will affect things like global health projects. Ottawa is also withdrawing some support for a world-renowned aid research centre.

The government has not stated the size of this year's aid budget and aid groups say Canada is pulling back from its strengths on the global stage.

"There will be reductions in development funding to global health programming, where Canada's contribution has grown disproportionately relative to other similar economies," the budget document says.

OTTAWA - The federal government's climate competitiveness strategy promises a stronger industrial carbon pricing system and the prospect of ending the emissions cap on oil and gas production to drive more investments in clean growth.

But the strategy, outlined in the federal budget on Tuesday, was short on details — and offered no update on where Canada stands on its 2030 and 2035 emission reduction targets.

That's despite assurances from federal ministers in recent months that the competitiveness plan would shed light on Canada's commitments.

Under the Paris climate pact, Canada committed to cutting emissions to at least 40 per cent below 2005 levels by 2030. Multiple analyses in recent months suggest the country will miss that goal by a wide margin.

OTTAWA - The federal budget says Canada will take out equity stakes in critical mineral projects to open up mining and position Canada as a major global supplier.

The federal budget, released Tuesday in Ottawa, outlines a plan for a $2 billion "critical minerals sovereign fund" over five years for equity investments, loan guarantees and offtake agreements.

Ottawa is also planning to add a dozen more critical minerals to its exploration tax credit list.

Many of the minerals and metals on the list play roles in Canada's EV and battery supply chains. Many of the newly added minerals, such as tin, tungsten and chromium, have defence applications. They're also used in the energy sector and to build semiconductors and clean technology.

OTTAWA - The Carney government's first budget redirects diplomatic dollars to the trade file while cutting Global Affairs Canada's budget — possibly by merging some embassies with those operated by like-minded countries.

In addition to $2.7 billion in cuts to foreign aid, Tuesday's budget calls for Canada to refocus its international presence when it comes to advocacy, security and development, while boosting exports to priority economies.

Global Affairs Canada's planned spending for the current fiscal year was $8.1 billion. Tuesday's budget forecasts $561 million in cuts in the next fiscal year, scaling up to $1.1 billion in annual savings two years later, and for each ongoing year.

The budget says the government wants to streamline its Trade Commissioner Service, which currently involves bureaucrats working out of embassies abroad to identify opportunities for Canadian businesses.

OTTAWA - This year's federal budget contains a deficit nearly twice the size forecast by the Liberals a year ago, as Prime Minister Mark Carney's government prioritizes capital spending over programs and services.

The budget tabled Tuesday projects a $78-billion total deficit for this fiscal year, up from a projection of around $42 billion in Ottawa's fall economic statement from late last year.

Ottawa says the effects of the Canada-U.S. trade war and uncertainty over future trade rules have weighed heavily on the Canadian economy, while creating risks to its outlook.

While the latest update comes in well above last year's estimate, experts say it's broadly in line with expectations.

OTTAWA - Prime Minister Mark Carney's first federal budget represents a shift in policy from Justin Trudeau as the Liberals bet that major investments in an economic transformation will pay off with much-needed growth.

The spending plan announced Tuesday include billions of dollars for infrastructure and new tax opportunities for businesses, alongside previously outlined plans to reduce government costs, including through job cuts.

Business lobbies, not-for-profits and other groups have spent the past few months pitching the government on what they'd like to see in the budget, but no spending plan can address every item on the national wish list. Here's a look at what is not in the budget:

PHARMACARE

VANCOUVER - Travel agents are celebrating Beijing's decision to resume group tourism to Canada after a five-year halt, hoping for the return of big-spending Chinese visitors who were a dominant presence for the industry before the COVID-19 pandemic.

Glynnis Chan, president of Vancouver-based Happy Times Travel and Tour Ltd., has been leading group tours for Chinese visitors to the city since the mid-1980s.

She said she expected a big boost for the local economy after Monday's decision by China to resume group tours that Chan said "ground to a halt" in 2020 amid the pandemic.

Chan said the tourists she hosted would typically spend six weeks travelling Canada, estimating they'd spend more than $1,300 a day, with Stanley Park in Vancouver, the Rocky Mountains and Parliament Hill in Ottawa on their sightseeing list.

VANCOUVER - A new study says sea otters in British Columbia have been found to be contaminated with so-called forever chemicals found in food packaging, non-stick cookware, cosmetics, electronics and other products. 

The study published in the journal Environmental Toxicology and Chemistry found samples from dead otters collected off the B.C. coast between 2016 and 2021 showed varying concentrations of several chemicals in the animals' liver and skeletal muscle tissue. 

Lead author Dana Price, a marine mammal researcher pursuing a master's degree at the University of British Columbia, said the findings were "unfortunately" not surprising given similar research on sea otters in other parts of the Pacific Ocean. 

It's the first study to examine forever chemical accumulation in B.C. sea otters, filling a "geographical gap" after the chemicals have been found in the animals in other locations, including California, Washington, Alaska and Russia.