Analysts estimate that Canada's federal deficit could exceed 70 billion CAD (50 billion USD) this year, up from 51.7 billion CAD last year. This represents a major challenge for Mark Carney, former governor of the central bank, who aims to make Canada's economy the strongest in the G7 group. Carney emphasized the need to take bold risks to stimulate the economy.
Canada, having a significant dependence on trade with the US, is vulnerable to tariff shocks. He has set a goal to double non-US exports in the next decade. Finance Minister Francois-Philippe Champagne has promoted the "made at home" message and emphasized the importance of investing in infrastructure and industries affected by tariffs. Federal ministries have also been asked to cut spending by up to 15% to support these initiatives.