Canadian PM Carney Promises Austerity, Discusses Trade with Trump

Prime Minister Mark Carney announced that Canada will present an austerity budget in the fall, aiming to rein in government spending that has grown faster than the economy over the past decade. The budget plan includes spending cuts of 15 percent across most departments, with exceptions for areas like health care, education transfers, Old Age Security, national defense, and the RCMP. Carney emphasized the need for discipline to create space for strategic investments while promising to protect key sectors. Concurrently, Carney held a constructive conversation with U.S. President Donald Trump regarding ongoing trade tensions, particularly tariffs on steel, aluminum, autos, and lumber. Although Canada lifted most of its counter-tariffs on U.S. goods under CUSMA as a goodwill gesture, Carney indicated that immediate removal of U.S. tariffs is unlikely and warned against expecting quick breakthroughs in negotiations. The Canadian government continues to engage with U.S. officials, including Michael Sabia's visit to Washington D.C., as part of ongoing efforts to resolve tariff disputes.