Canada's Carney unveils C$142.1 billion budget to cut U.S. reliance
The gist
Canada's government proposed C$142.1 billion in multiyear spending and tax breaks in its second budget.
The plan bets on investment and non-U.S. exports as Trump's trade war slows growth.
How it unfolded
- Sep 2025Carney unveiled the first series of "nation-building" projects Ottawa will review for fast-track approvals, including doubled LNG production at a British Columbia plant, a Montreal port expansion and a small modular nuclear reactor in Ontario.
- Aug 2026Canada walked away from trade negotiations over U.S. demands that Carney said threatened Canadian sovereignty and cultural protections.
- Oct 29, 2026Carney made an announcement on Canada's AI digital sovereignty at Mila, the Quebec Artificial Intelligence Institute, in Montreal.
Key terms
- midterm elections
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
- LNG
- Natural gas cooled to liquid form for easier and safer storage or transport, taking up far less volume.
- dirigiste
- Relating to an economic system where the state actively directs and guides the economy rather than leaving it to free markets.
Source: Wikipedia