Canada Seeks Resilience Amid Trade War with US

Canadian Prime Minister Mark Carney said that Canada will emerge from its trade war with the United States as a more resilient and independent economy. Speaking at his 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.

'And to our American friends, let me say this. We will always be neighbors,' Carney said. 'But we need to engage as true partners that respect each other's traditions and sovereignty.'

Carney unveiled a major expansion of business tax breaks, which the government says will nearly halve Canada's effective tax rate on new investment to 6.4%, less than half the U.S. rate. The 'productivity mega deduction' will allow businesses to immediately write off more than 65% of eligible capital investment.

Carney also announced that Ottawa will seek private investment through long-term concessions to operate Canada's four largest airports, which could raise tens of billions of dollars for transportation and other infrastructure projects. He noted that about 80% of trade with the U.S. remains tariff-free.