Carney Vows Stronger Canada After Trade War

Canadian Prime Minister Mark Carney says Canada will emerge from its trade war with the US as a stronger, more resilient economy. Speaking at his Canada Investment Summit in Toronto, Carney stated 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 told hundreds of global investors. 'But we engage as true partners that respect each other's traditions and sovereignty.'

Carney also unveiled a major expansion of business tax breaks, which the government claims will nearly halve Canada's effective tax rate on new investment to 6.4%, less than half the US rate.

The 'productivity mega deduction' will allow businesses to immediately write off more than 65% of eligible capital investment, up from roughly 15%. This is seen as a significant incentive for companies to invest in Canada, with Carney stating that 'the incentive for companies to invest in Canada is twice as high as it is in the United States.'

Carney also announced plans to seek private investment through long-term concessions to operate Canada's four largest airports, while retaining public ownership of the land and assets.