Canada Emerges Stronger Amid US Trade Tensions

Canadian Prime Minister Mark Carney said Canada intends 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 signaled that Ottawa is prepared to wait for the right conditions rather than rush into a deal with Washington.

'When those opportunities return, Canada will be an even better partner, stronger, more resilient, more independent,' he said. The country aims to capitalize on its competitive advantages by offering businesses attractive tax incentives.

Carney unveiled a major expansion of business tax breaks that the government says will nearly halve Canada's effective tax rate on new investment to 6.4%, less than half the U.S. rate. This move is part of Canada's strategy to compete with the United States for global capital, as highlighted by Carney: 'The incentive for companies to invest in Canada is twice as high as it is in the United States.'

Carney also announced that Ottawa will seek private investment through long-term concessions to operate Canada's four largest airports. He noted that about 80% of trade with the U.S. remains tariff-free, suggesting a mutually beneficial arrangement can be achieved.