Canada Aims for Resilience in Trade War with US

Canadian Prime Minister Mark Carney stated that Canada will emerge from its trade war with the United States as a more resilient and independent economy. He emphasized that Ottawa is prepared to wait for the right conditions rather than rush into a deal with Washington.

Carney also unveiled a major expansion of business tax breaks, which will nearly halve Canada's effective tax rate on new investment to 6.4%. This move aims to make Canada more competitive in attracting global capital.

The expanded 'productivity mega deduction' allows businesses to immediately write off over 65% of eligible capital investment, up from around 15%. Carney noted that the incentive for companies to invest in Canada is now twice as high as it is in the United States.

In a veiled jab at U.S. President Donald Trump's trade policies, Carney emphasized the importance of reliable and predictable international relationships over transactional and zero-sum approaches.