Canada blueprints $121B budget to help offset US protectionism

TRENTON, Canada

The Canadian government unveiled a CAN$141 billion (US$121 billion) budget Tuesday that Prime Minister Mark Carney said is designed to counter the impact of US-imposed tariffs and strengthen the domestic economy.

The budget, however, faces an uncertain path in Parliament. The ruling Liberal Party holds a minority and will need at least three votes from other parties to pass the measure.

The plan seeks to support Canadians who have lost or may lose their jobs because of the economic fallout from American tariffs and to discourage manufacturers and businesses from relocating to the United States to avoid them.

Carney described the budget as containing several “bold” initiatives, if approved by lawmakers.

Under the proposal, the CAN$141 billion in spending would be partly offset by about CAN$51 billion in cuts and savings. The government plans to trim 40,000 public-sector jobs while channeling funds toward large-scale building projects to expand housing and create employment opportunities.

Defense spending would rise to CAN$81 billion over five years, while the government seeks to fast-track CAN$500 billion in private investment in mining, nuclear power, and liquefied natural gas. The budget also calls for a CAN$2.7 billion reduction in foreign aid over four years and introduces a program requiring refugees to contribute to their health-care costs.

“The rules-based international order and the trading system that powered Canada’s prosperity for decades are being reshaped – threatening our sovereignty, our prosperity, and our values,” Finance Minister Philippe Champagne said.

The Liberals said the budget is the remedy.