Ottawa's new budget aims for record investments and global diversification—change is coming for Canadian trade
Canada is preparing to double its non-US exports over the next decade, a move Prime Minister Mark Carney says is essential as the country faces a new era of global competition and diminished economic reliance on the United States, according to multiple reports.
Carney announced that the upcoming federal budget, to be unveiled November 4, will focus on “unprecedented” private sector investment and a decisive shift away from overdependence on the US market, as reported by The Canadian Press.
According to AP News, he said that the decades-long process of deepening economic ties with the US is “over” because recent American tariffs have battered Canada’s key industries, including steel, aluminum, autos, and lumber.
The prime minister stated that Ottawa has the “fiscal capacity to act decisively” and is setting an “ambitious” target to generate US$300bn in new trade by expanding exports to other global markets.
Carney emphasized that this transformation will require “challenges” and “sacrifices,” warning that “we won’t transform our economy easily or in a few months—it will take some sacrifices and some time,” as reported by CBC News.
The budget will introduce a climate competitiveness strategy, a new immigration plan, and an international talent-attraction initiative, aiming to position Canada as a top destination for global capital and skilled workers.
Carney also promised a “building spree” in housing and industrial projects, noting it will be a “great time to be in the trades,” as per The Canadian Press.
However, Carney’s government, which holds a minority in Parliament, must secure support from opposition parties to pass the budget.
Reuters reported that Conservative Leader Pierre Poilievre has called for an “affordable budget” with broad tax cuts and a strict deficit cap, while Bloc Québécois and NDP leaders have outlined their own priorities, including increased health transfers and substantial investment in jobs and housing.
Economists forecast the federal deficit could reach between US$70bn and US$100bn for 2025/26, a significant increase from previous years, according to Reuters.
Carney has pledged to cut wasteful spending and drive efficiency, stating, “When we have to make difficult choices, we will be thoughtful, transparent, and fair.”
As Carney prepares for economic summits in Asia ahead of the budget’s release, the stakes remain high.
The budget vote is a confidence matter, and failure to pass it could trigger another federal election, as reported by CBC News.
