Carney presents new budget: Canada pushes for economic independence from the USA

Trump's tariff policy is weighing heavily on Canada's economy. The government therefore wants to reduce its dependence on the USA and invest billions in its own projects. Despite the Democrats' election victory in the midterms, Prime Minister Carney is sticking to his course.

The Canadian government has presented a budget aimed at achieving "economic independence" from the United States. "Canada and the United States will not return to our old relationship," said the new budget, titled "Masters of our Destiny." Canada's Finance Minister Francois-Philippe Champagne said the current government inherited an economy that was "overly dependent on the United States."

Reflecting on the U.S. Democrat's victory in Tuesday's congressional election, Canada's Prime Minister Mark Carney told reporters that political developments in the U.S. were "important" and that bilateral relations were "evolving," but that his priority remained greater independence. "We're focused on this, we're focused on the same issues as we were at the beginning of the week," before the congressional elections, Carney said.

The budget includes plans for Canada's first sovereign wealth fund. The so-called “Canada Strong Fund” worth 25 billion Canadian dollars (almost 16 billion euros) is intended to invest in important national projects. Ottawa hopes government involvement in such projects will help attract private capital.

USA argues with Canada

Carney's second budget since taking office last year also describes a response to the consequences of US tariff policy. The budget notes that C$44 billion has already been announced for businesses and workers affected by the tariffs.

Canada is suffering like no other country from US President Donald Trump's aggressive trade policy. The country exports a large proportion of its goods to the USA. Trade talks between Ottawa and Washington failed in August. Canadian Prime Minister Carney accused the US government of trying to impose conditions that violated Canada's sovereignty.

The opposition Democrats, who won the majority in both the US House of Representatives and the Senate in Tuesday's midterm elections, are critical of Trump's trade war with their northern neighbor. “We have of course taken note of the election results in the United States,” said Canada’s Trade Minister Dominic LeBlanc. However, the government in Washington is responsible for trade negotiations, not the now majority Democratic US Congress.