July 26 top news: Northwest wildfires, U.S. tariffs, Iran war and Thunder Bay updates

THUNDER BAY — Northwestern Ontario’s wildfire emergency remains the most important regional story Sunday as 130 fires continue burning, evacuation measures remain in place and crews from Ontario and Alberta work on several major fire complexes.

Nationally, Canada is preparing for another escalation in its trade dispute with the United States. Internationally, the Iran war has expanded toward the Red Sea and Caspian Sea despite a pause in direct American strikes, increasing risks to energy supplies and global shipping.

What NetNewsLedger Readers Need to Know Today

For Thunder Bay and Northwestern Ontario, the immediate priorities remain wildfire conditions, displaced residents, transportation access and the ability of remote communities to return home safely.

The largest economic risks come from threatened U.S. tariffs and instability along major international energy routes. Those developments could affect forestry, mining, trucking, aviation, construction costs and household fuel prices across the region.

This briefing reflects information available Sunday, July 26. Wildfire classifications, evacuation instructions and international military developments may change during the day.

Regional: 130 Wildfires Remain Active in Northwestern Ontario

Six new wildland fires were confirmed across the Northwest Fire Region by Saturday evening.

As of 6:17 p.m. CDT on July 25, Aviation, Forest Fire and Emergency Services was reporting 130 active fires. Twenty-seven were not under control, five were being held, seven were under control and 91 were being observed.

Three of Saturday’s new fires had already been extinguished. The remaining fires included a small uncontrolled fire near Wabinosha Bay, east of Highway 527, a fire being held south of Lake Nipigon and a controlled fire near Lower Manitou Lake.

The regional total has declined from earlier in July, but the number of uncontrolled fires remains significant. Fire counts can also change quickly as new fires are discovered, mapped or declared out.

A Restricted Fire Zone remains in effect across the Northwest Fire Region and part of the Northeast Fire Region. Open-air burning, including campfires, is prohibited unless a specific legal exception applies.

Thunder Bay 36 Remains the Region’s Largest Fire

Thunder Bay 36 was more accurately mapped at approximately 313,930 hectares following aerial perimeter flights and verification work on the ground.

Additional firefighters from Alberta joined the operation Saturday. Ground crews continue locating and extinguishing hotspots along the fire perimeter, supported by helicopter water drops and heavy equipment constructing fireguards.

The revised size does not necessarily represent new growth. Improved mapping frequently changes the recorded area of a large wildfire.

Values-protection work continues around buildings, infrastructure and other identified sites.

Aircraft restrictions remain in effect around the fire. Unauthorized planes and drones must stay away because their presence can force waterbombers and helicopters to suspend operations.

Cat Lake Power Restored as Return Planning Continues

Hydro One has replaced poles damaged along the Cat Lake First Nation power line, restoring electricity to the community.

Sioux Lookout 72, the fire near Cat Lake, remained not under control at approximately 23,597 hectares. FireRanger crews and helicopters continued suppression work, with officials reporting progress under more favourable conditions.

Cat Lake First Nation Chief Russell Wesley has said community leadership hopes residents can return when fire risks, infrastructure and transportation conditions allow. The community’s 542 evacuees have been staying in Toronto.

Restoring electricity is an important step, but it does not automatically mean the community is ready for residents to return. Leadership and emergency officials must also assess smoke, water systems, health services, airport operations and the condition of homes and other infrastructure.

Thunder Bay Continues Supporting Regional Evacuees

Thunder Bay remains an important reception, transportation and service centre during the wildfire emergency.

The City has reported that residents from Armstrong, Whitesand First Nation and Namaygoosisagagun First Nation, also known as Collins, have been seeking shelter in Thunder Bay. Other communities remain under evacuation alerts as fire conditions continue across the region.

Longer evacuations can place pressure on hotels, food programs, health services, the airport and community organizations. Residents displaced from remote First Nations may also require access to medications, cultural supports, interpreters and assistance reconnecting with family members.

The recovery period could continue well after the immediate fire threat passes, particularly for communities that have lost homes, infrastructure or transportation connections.

Local: Correctional Centre Escapee Located by Police

Thunder Bay Police Service says an individual who escaped from the Thunder Bay Correctional Centre has been located and arrested.

Police began searching after receiving a report from the correctional centre on July 24. Officers found the individual at about 1:30 a.m. on July 25 with assistance from the Ontario Provincial Police.

Police did not release further information about the escape, the location of the arrest or whether additional charges are expected.

Local Crime Statistics Remain a Major Public-Safety Issue

Statistics Canada’s latest report shows Thunder Bay’s police-reported crime rate rose 18 per cent in 2025—the largest increase among the census metropolitan areas included in the national table.

The Thunder Bay census metropolitan area recorded a Crime Severity Index of 114.1 and a conventional crime rate of 8,373 incidents per 100,000 people. Thunder Bay had the highest Crime Severity Index among Ontario metropolitan areas and the fourth-highest nationally.

The crime rate measures the number of police-reported incidents, while the Crime Severity Index also assigns greater weight to more serious offences.

Thunder Bay’s crime rate increased 18 per cent, but its severity index rose by three per cent. That pattern suggests—but does not establish—that higher-volume, lower-severity offences may have contributed significantly to the increase.

More detailed local data are required to determine which offences drove the change and how those incidents were distributed across neighbourhoods.

Often in the city and region, social media posts on crime and incidents that people witnessed are put online faster than official police news releases. In some cases, more often than not, those social media reports have some of the facts, but not all of the facts.

Thunder Bay Forecast Calls for Clouds and Possible Thunderstorms

Thunder Bay is expected to be mostly cloudy Sunday, with a high near 23 C and the possibility of an afternoon thunderstorm.

Occasional rain is forecast for Monday, July 27, with a high near 24 C. Tuesday is expected to be mostly sunny with a high near 25 C.

Rain may assist wildfire suppression in some areas, but thunderstorms can also produce lightning and new fire starts. Wind direction remains important because it can influence smoke movement and fire behaviour.

Residents should continue checking weather, air-quality and highway information before travelling or planning extended outdoor activities.

National: Canada Considers Response to New U.S. Tariffs

Prime Minister Mark Carney says Canada is considering retaliatory measures if the United States proceeds with new 50 per cent tariffs on a range of Canadian goods.

The tariffs are scheduled to take effect Aug. 19 and would apply to almost US$20 billion in Canadian exports, including furniture, cement, clothing, dairy products and other consumer and construction-related goods.

Carney said Canada is intensifying negotiations but that all options remain available if an agreement cannot be reached. Provincial leaders disagree over whether Canada should impose matching tariffs or restrict exports of resources such as energy and critical minerals.

The dispute matters directly to Northwestern Ontario. Forestry producers, mining suppliers, trucking businesses and manufacturers rely on predictable access to American markets and equipment.

Even products not covered directly can be affected when tariffs change currency values, supply routes, business investment or the price of imported machinery and components.

Gordie Howe Bridge Opens Monday Amid Trade Tensions

The Gordie Howe International Bridge between Windsor and Detroit is scheduled to open to traffic Monday, July 27.

Canada marked the bridge’s opening Friday without American officials after cancelling a planned joint ceremony because of the escalating tariff dispute.

The $4.7-billion crossing was financed by Canada and is intended to provide another route for the approximately $274 million in daily trade moving between Windsor and Detroit. Disagreement continues over how future toll revenues will be divided and when Canada will recover its construction costs.

The bridge is far from Thunder Bay, but its opening matters to businesses across Ontario because Windsor-Detroit is the country’s busiest commercial trade corridor.

A more reliable crossing can improve the movement of manufactured goods, food, machinery and industrial components. Those benefits, however, may be limited if tariffs reduce cross-border trade volumes.

Canada Pursues New Markets Beyond the United States

Canada concluded negotiations toward a Comprehensive Economic Partnership Agreement with the United Arab Emirates and signed a free-trade agreement with Ecuador on July 24.

The agreements form part of Ottawa’s effort to expand trade outside the United States as Canada-U.S. relations become less predictable.

New markets could eventually create opportunities for Canadian agricultural products, forest products, minerals, technology and professional services.

For Northwestern Ontario, trade diversification could support forestry and critical-mineral development. However, reaching new overseas markets requires competitive rail, port and marine transportation, including efficient connections through the Port of Thunder Bay.

International: Iran War Expands Toward Red Sea and Caspian Sea

The Iran war broadened over the weekend even though the United States paused direct strikes after 13 consecutive nights of attacks.

Yemen’s Iran-aligned Houthi movement attacked Saudi oil infrastructure along the Red Sea coast. Iran also accused Ukraine of striking an Iranian commercial vessel in the Caspian Sea, reportedly killing one sailor.

The United States says its naval blockade of Iran remains in effect. Washington has not provided a detailed explanation for the pause in airstrikes, although American officials continue calling for Iran to negotiate.

The widening conflict threatens shipping through the Red Sea and the Strait of Hormuz, two important routes for global oil and commercial cargo.

Russia and Ukraine Exchange New Attacks

Russia launched a ballistic missile attack on Kyiv early Sunday while other regions of Ukraine were also struck. Ukrainian officials reported two people killed in attacks elsewhere in the country.

Ukraine has continued its own long-range operations against Russian military, port and energy targets as both sides expand the use of missiles and drones.

The war remains relevant to Northwestern Ontario because disruptions affecting Black Sea shipping and agricultural exports can influence international grain markets.

Changes in overseas demand for Canadian wheat and other crops can affect Prairie grain movements through the Port of Thunder Bay and the St. Lawrence Seaway.

Israeli Strike Kills Senior Hamas Security Official in Gaza

An Israeli airstrike killed a senior officer in the Hamas-run Palestinian internal security service and another officer as they travelled through central Gaza on Sunday.

The Israeli military confirmed striking a Hamas militant but did not provide additional details. Hamas authorities accused Israel of violating the U.S.-brokered ceasefire.

Although the ceasefire ended full-scale fighting, Israeli strikes have continued. Gaza health officials say more than 1,190 Palestinians have been killed since the truce took effect, while four Israeli soldiers have been killed by militants during the same period.

The figures provided by parties to the conflict cannot always be independently verified while fighting continues.

Nearly all of Gaza’s approximately two million residents remain concentrated in damaged buildings or temporary shelters along a narrow coastal area, leaving humanitarian needs extremely high.

What to Watch Through Sunday

Northwestern Ontario residents should monitor wildfire updates, evacuation instructions, Restricted Fire Zone rules and changes affecting highways or air travel.

Canadian businesses will be watching negotiations ahead of the planned Aug. 19 U.S. tariffs and the opening of the Gordie Howe International Bridge on Monday.

Internationally, the leading indicators will be whether American attacks on Iran resume, whether the Houthis continue targeting Saudi oil infrastructure and whether shipping through the Red Sea and Strait of Hormuz declines further.