Carney Says Canada Will Emerge Stronger From U.S. Trade Dispute

Canadian Prime Minister Mark Carney said Canada intends to emerge from its trade dispute with the United States as a more resilient and independent economy, telling investors that Ottawa would focus on strengthening the country's long-term economic position rather than rushing into a new agreement with Washington.

Canadian Prime Minister Mark Carney spoke at the Canada Investment Summit in Toronto as Ottawa seeks to strengthen investment and reduce dependence on the US market. [Photo: Mark Carney Facebook]

Speaking at the Canada Investment Summit in Toronto, Carney said Canada would remain a close neighbor of the United States but argued that the relationship should be based on mutual respect for each country's traditions and sovereignty.

“We will always be neighbors,” Carney said.

“When those opportunities return, Canada will be an even better partner — stronger, more resilient, more independent.”

Carney also announced an expansion of Canada's investment tax incentives through a new Productivity Mega Deduction.

The government said the measure would expand immediate expensing to more than 65% of eligible capital assets, up from roughly 15%.

Eligible investments include machinery and manufacturing equipment, software, patents, research and development, fiber-optic infrastructure, pipelines, aircraft and vehicles.

The Canadian government said the measure would reduce the marginal effective tax rate on new business investment to 6.4%, from about 13%, compared with 16.9% in the United States under current US tax rules.

The government says the changes are intended to encourage domestic and foreign investment at a time when Canada's trading relationship with the United States has been strained by tariffs and uncertainty.

Carney has also emphasized expanding Canada's economic relationships with other countries, including through closer cooperation with Europe and efforts to attract investment in energy, critical minerals, defense and technology.