Politics · Canada · 31 mins ago
Canada budget aims to reduce reliance on US trade
Mark Carney’s government unveiled Canada’s 2026 budget in Ottawa, aiming to make the economy less dependent on the United States.
The plan proposes C$142.1 billion in new spending and tax breaks, including support for investment, energy, infrastructure and culture.
The government forecasts a C$62.3 billion deficit for 2026-27, C$3 billion less than its April estimate.
The budget comes as US tariffs and trade tensions threaten growth; it forecasts economic growth of 1% in 2026 and 1.7% in 2027.
Carney’s government wants to double exports beyond the US by 2035 and build closer trade ties with Europe and Asia.
It is also advancing a proposed C$25 billion fund for Canadian companies and major projects.
The government expects the trade conflict to slow growth late this year and early next year, while work toward a possible trade agreement continues.
Canada’s 2026 budget proposes C$142.1 billion in new spending and tax breaks, with a focus on reducing the country’s reliance on US trade.
Prime Minister Mark Carney’s government says the plan aims to attract investment, strengthen domestic commerce and diversify trade relationships.
The budget projects a C$62.3 billion deficit for the 2026-27 fiscal year, C$3 billion below the April forecast.
It includes plans for energy and infrastructure investment, a national sovereign wealth fund and support for Canadian industries.
The government expects US trade pressure to slow economic growth late this year and early next year.
- Who
- Prime Minister Mark Carney’s government, with Finance Minister François-Philippe Champagne presenting the budget.
- What
- Canada’s 2026 budget proposes C$142.1 billion in new spending and tax breaks. It aims to reduce reliance on US trade and strengthen the economy.
- When
- It was tabled on Thursday, November 5, 2026.
- Where
- Ottawa, Canada.
- Why
- The government says it wants to make Canada more resilient to external shocks and diversify its trade relationships amid US trade pressure.
This story does not have two clearly opposing sides.
Canada walked away from trade negotiations over US demands that Carney said threatened Canadian sovereignty and cultural protections.
Democrats swept the US midterm elections, weakening President Donald Trump’s political position.
Champagne said the budget would make Canada more resilient, stronger and more independent.
Carney’s government tabled the 2026 budget in Ottawa.
- New spending and tax breaks
- C$142.1 billion
- Projected 2026-27 deficit
- C$62.3 billion
- Deficit reduction from April forecast
- C$3 billion
- Sovereign wealth fund
- C$25 billion
- Target to double exports outside the US
- By 2035
7 sources
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What people are saying
At its core, our plan is about changing Canada’s growth model
No matter what happens south of the border, no matter what happens in the world, we will be more resilient, we will be stronger, we will be more independent
going to put an end to these tariffs
The United States is upending global trade
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Next step: November 5th