Canada Takes Control: A New Era in Economic Independence

Canada has taken significant steps to assert its economic independence from the United States. The government's decision to abandon attempts to appease Trump on tariffs and trade was a turning point, marking the beginning of a new era in Canada's relations with the US.

The pace of events has been rapid since then, with several key policy announcements aimed at boosting investment and economic growth. The 'Productivity Mega Deduction' allows immediate expensing of most assets, cutting the marginal effective tax rate (METR) on investment in half to 6.4%. This is a significant boost to investment, which will apply not just to megaprojects but to thousands of decisions across the economy.

The government has also opened Canada's four major airports to private investment and funded a sovereign 'broadband backbone' that ensures internet traffic in Canada need not be routed through the US. These moves aim to unlock capital for investment in public assets, with the potential to increase efficiency and improve service delivery.