FIRST THING — Defense Minister ANITA ANAND is self-isolating after one of her staff tested positive for Covid. Anand had planned to travel to Washington for her first in-person meeting with U.S. Secretary of Defense LLOYD AUSTIN. They met virtually instead. KEEPING UP WITH COVID — "Don't have mass gatherings." That was top doctor THERESA TAM's advice on Wednesday, less than a day after three NHL teams played to packed Canadian arenas — while another, the Calgary Flames, had games postponed because too many players and coaches were sidelined by Covid. The last time sports fans watched Covid calamity strike their favorite leagues, the circumstances were far different. Exhibit A: Seventy-six percent of Canada's population has received two vaccine doses. No one really knows what Omicron is about to unleash on Canada. But early data suggests a far more transmissible variant than the deadly Delta. Tam doesn't control the provinces, but she sent out a loud signal: don't fill arenas. — Reaction time: Prime Minister JUSTIN TRUDEAU will get on the horn today with Ontario Premier DOUG FORD. Any guesses about what's on their agenda? The phone call comes as both men are under fire for reacting way too sluggishly to Omicron. — The knocks against them: Trudeau's government slapped a travel ban on 10 African countries shortly after Omicron was first detected in Botswana and South Africa. An army of critics say the ban never made sense, because the variant had likely at that point already snuck past borders everywhere. The feds kept it in place. Ford's government has been slammed for not ramping up booster campaigns, widely seen as the best protection against whatever Omicron has in store. So far only about 9 percent of eligible Ontarians have a booster. He also chose not to reduce capacity limits in large venues. On Monday, 19,463 people watched the Toronto Raptors soundly defeat the Sacramento Kings at Scotiabank Arena. — The federal pivot: Tam signaled a shift in thinking Wednesday on the travel ban. "I think this is a policy that needs to be revisited," she told reporters. Earlier, a phalanx of Cabinet ministers at a press conference noted the seriousness of the situation with one of the least-intrusive measures at their disposal: an advisory to avoid non-essential international travel. Omicron is already spreading like wildfire. The travel advisory wasn't much more than an indication that Canadians should sensitize themselves to more uncertainty. "I understand this sucks," Trudeau told his own news conference, echoing his own words more than a year ago. "This is not what anyone wanted for our Christmas holidays. Not much in the last year has been what anyone wanted." Health Minister JEAN-YVES DUCLOS insisted that Ottawa would deliver enough booster shots for every eligible Canadian. The current inventory numbers 16 million, but he promised millions were on the way "in the coming weeks." The ministers also crowed about the millions of rapid tests they'd delivered to the provinces. — This is less subtle: At his own press conference, Ford announced the kind of restriction that sports fans hoped was ancient history. He reduced the capacity of large venues to 50 percent — still far too high for epidemiologists who worry about superspreader events, but a clear signal to Ontarians about what lies ahead. Ford also hurried up his province's booster campaign. Everyone over the age of 18 is eligible for a third dose starting Monday. His government is also launching a massive distribution campaign for rapid tests, to be distributed at hundreds of provincially run liquor stores and dozens of pop-up sites (notably: none in Ottawa, yet). — Same ol' federal patchwork: British Columbia, home of the Vancouver Canucks, hasn't yet committed to reduced capacity in arenas. The province's case counts are still low compared to Ontario and Quebec. But how long can that last? Everything's normal until it isn't. And Canadian governments have a bad habit of reacting weeks late to Covid-era threats. — Related reading from The Star: Omicron is making the holidays complicated. 50 COVID experts weigh in with their advice. ROUGH TRADE — There's no supply chain shortage for U.S.-Canada trade irritants. The Biden administration fired a flare Wednesday over a piece in Finance Minister CHRYSTIA FREELAND’s fiscal update reaffirming Canada's pursuit of a digital service tax (DST) in case a new international tax treaty fails to come into force. POLITICO’s Doug Palmer has more for Pro s on how the news didn’t go over well in the U.S. trade rep’s office. — Fighting words: “Canada’s proposed DST would create the possibility of significant retroactive tax liabilities with immediate consequences for U.S. companies,” said U.S. Trade Representative spokesperson ADAM HODGE in a statement. “If Canada adopts a DST, USTR would examine all options, including under our trade agreements and domestic statutes." ICYMI: Americans aren’t into foreign legislation that discriminates against U.S. companies. — New year imports: The DST irritant is the latest addition to a pile of high-profile U.S.-Canada trade files likely to keep Trudeau cabinet ministers Freeland, MARY NG and MARIE-CLAUDE BIBEAU busy through the holidays. The dispute over the Build Back Better legislation’s protectionist EV tax credit is right at the top of the list. Canada seems to be the last priority of at least one Senate Democrat. CBC reporter (and POLITICO alum) ALEX PANETTA asked Ohio Sen. SHERROD BROWN about the EV tax credit issue. His blunt response: “ I don’t care what Canada thinks.” The EV tax credit bilateral blinking contest could escalate when Freeland and Ng publish their promised list of American goods that Canada is ready to slap with retaliatory tariffs. It’s been almost a week since the pair promised those details in the “coming days.” Ng said they’re still “working on it” as of Wednesday. With a Christmas deadline fading for BBB, it’s looking more likely that the legislation will be bounced to the new year. Which gives Team Canada a little more runway. House Speaker NANCY PELOSI, however, says she’s “still hopeful” BBB will pass before year’s end. — Spuds buds : Don’t forget about P.E.I. potatoes. Trade restrictions propelled Premier DENNIS KING to lead a delegation with his Agriculture Minister BLOYCE THOMPSON, advisor and ex-Liberal MP WAYNE EASTER, and P.E.I. Potato Board’s GREG DONALD to D.C. this week. The goal: Get the province’s spuds back in the U.S. market after concerns over a fungus temporarily suspended trade last month. Bibeau, the federal ag minister, said she’s not expecting a quick resolution. “It would be ambitious to think it could be solved by the end of the year," she told reporters. DAYS WITH NO DOCS: 51 — The government is edging closer to the two-month mark since Cabinet was sworn in, and still the Prime Minister's Office has made no mention of new mandate letters for ministers. Playbook is counting. Bet on this week (we think). | 
