Carney Declares Canada Will Wait for Favorable Conditions in US Trade War

Canadian Prime Minister Mark Carney delivered a stern message to his American counterparts during the Canada Investment Summit in Toronto, emphasizing that Canada will not rush into a trade deal with the United States and will instead wait for the right conditions. He stated that when those opportunities return, Canada will be an even stronger, more resilient, and independent economy.

Carney unveiled a major expansion of business tax breaks, which 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' allows businesses to immediately write off over 65% of eligible capital investment, up from roughly 15%. This move is intended to make Canada globally tax competitive and a more attractive destination for investment.

Carney also announced plans to seek private investment through long-term concessions to operate four of Canada's largest airports. He stated that this plan could raise tens of billions of dollars to reinvest in transportation and other infrastructure.

In his speech, Carney criticized the increasingly transactional approach to international economic relationships, saying that countries seeking to preserve their independence need to work more closely with like-minded partners. He noted that about 80% of trade between Canada and the U.S. remains tariff-free and expressed confidence that a mutually beneficial arrangement can be reached.

Carney's comments come after trade talks between Canada and the United States collapsed last month, prompting Washington to impose 50% tariffs on Canadian goods. The Canadian government has since retaliated with its own tariffs.