Canada Aims for Stronger Economy Amid Trade War

Canadian Prime Minister Mark Carney said that Canada will wait for the right conditions to emerge from its trade war with the United States as a more resilient and independent economy. Speaking at the Canada Investment Summit in Toronto, Carney emphasized that Ottawa is prepared to wait for the best possible deal rather than rush into an agreement.

Carney also unveiled a major expansion of business tax breaks, which will allow businesses to immediately write off over 65% of eligible capital investment, up from roughly 15%. This move aims to make Canada more competitive with the United States in attracting global capital. The effective tax rate on new investment is expected to drop to 6.4%, less than half the U.S. rate.

Carney's comments come as trade talks between Canada and the United States collapsed last month, leading to Washington imposing 50% tariffs on about $20 billion in Canadian goods. The Prime Minister suggested that Canada cannot build its strategy around a return to the old relationship with the United States.

In a fireside chat after his speech, Carney noted that there is still a mutually beneficial arrangement that can be had between the two countries. He emphasized that when it is the right time to strike a deal, Canada will be ready to do so.