Canada will be ‘stronger, more resilient, more independent’ after US trade war: Carney

Canadian Prime Minister Mark Carney declared on Tuesday that Canada aims to emerge from its trade war with the United States as a more resilient, independent, and stronger economy. Speaking at the Canada Investment Summit in Toronto, Carney emphasized the importance of respecting each country's sovereignty and tradition in future cooperation with Washington.

He downplayed concerns about a transactional and zero-sum approach to international economic relations, stating that Canada will be a better partner when opportunities for closer cooperation return.

Carney explained that Canada intends to attract private investment through long-term concessions to operate its four largest airports while retaining public ownership of the land and assets. This move could raise tens of billions of dollars to reinvest in transportation and other infrastructure. The government also announced new tax incentives for businesses, lowering the marginal effective tax rate on new business investment to 6.4%, the lowest among major economies.

Despite trade tensions, Carney stated that around 80% of Canada-US trade remains tariff-free, and a mutually beneficial agreement could still be reached. He reiterated Canada's commitment to speeding up reviews of major projects and highlighted the importance of alternative economic partnerships, particularly with the European Union. Canada seeks a partnership with the EU that could include visa-free travel for Canadians, and bilateral trade with the EU stands at approximately $147 billion.