Liberal leadership contender Mark Carney wants Canada to look beyond the United States to bolster its roster of trade partners amid ongoing tariff threats from President Donald Trump.
He also teased tax cuts for middle-class Canadians and accelerated plans to meet NATO defence spending targets if his campaign to become Liberal leader and the next prime minister is successful.
Carney, speaking in Windsor, Ont., in front of the Gordie Howe International Bridge on Wednesday, said Canada should remain “closely integrated” with the U.S. in sectors such as automotive, energy and security where the North American neighbours have strong ties.
But he said, “now that U.S. priorities are shifting, we need to change our priorities in ways that work best for Canada.”
“We know we shouldn’t put all our eggs in one basket,” he said. “We can and must change our major trading partners.”
Carney said Canada ought to diversify its trading relationships with countries that “share our values,” and named the United Kingdom, the European Union and “leaders in Asia.”
He cited emerging industries such as clean energy, critical minerals and artificial intelligence as sectors where Canada can install itself as a trusted partner for overseas economies.
He said Canada should expand existing supply chain infrastructure, such as ports, railways and trucking corridors, to help reach more global markets.
The calls come amid looming threats of a trade war with the U.S., Canada’s largest trading partner.
Prime Minister Justin Trudeau said on Monday that Canada had secured a 30-day pause on Trump’s pending tariffs, which had been set to take effect on Tuesday.
Canada has reiterated pledges for $1.3 billion in spending to secure the border and promised to install a “fentanyl czar” to stem the flow of drugs into the U.S.
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Former Liberal cabinet ministers Chrystia Freeland and Karina Gould, two of Carney’s opponents in the Liberal leadership race, have called for a “Buy Canadian” response to offset the impact of looming tariffs.
Liberal MP Ruby Dhalla, another candidate for the Liberal leadership, has called for diversified trading relationships with China, India, Brazil, Saudi Arabia and others to “reduce reliance on a single market.”
Carney on Wednesday also emphasized the need to increase trade ties within Canada, calls echoed by Conservative Leader Pierre Poilievre and other Canadian officials.
Federal Trade Minister Mary Ng said this week that Canada’s freshly inked trade agreement with Ecuador is proof that Ottawa’s trade diversification strategy is already paying dividends.
Carney teases tax cut, restoring EV incentives
Carney on Wednesday also promised a “new approach to federal budgeting” that would “save precious taxpayer dollars” while also incentivizing business investment in Canada.
He teased that, in the coming weeks, he would unveil a “middle-class tax cut” and a plan to boost young Canadians’ incomes. The former central banker did not provide details on how he would fund tax cuts, but suggested that his government would not cut existing Liberal programs for dental and child care, nor would he accelerate public spending.
“It’s about where we go from here looking forward and more of an emphasis on policies that catalyze business investment,” he said.
Gould has pledged to trim the federal GST to four per cent for a year if she becomes Liberal leader.
Carney also pledged to meet NATO spending targets of two per cent of GDP by 2030, two years ahead of the Trudeau government’s schedule. Canada’s longtime failure to meet the two per cent target has been a criticism of Trump’s in past negotiations.
Last week, Carney unveiled a plan to end the consumer price on carbon and replace it with a plan that will see industrial polluters pay for incentives to reward Canadians for taking eco-friendly actions.
Freeland and Dhalla have indicated they would scrap the consumer carbon price, while Gould has pledged to freeze the program; former Liberal MP and businessman Frank Baylis has said he would “fix” the carbon price program if he becomes leader.
Carney was asked Wednesday whether he would reinstate incentives for electric vehicle purchases under his environmental plan — federal funding for EV rebates stalled last month after the program’s proceeds were fully committed, months ahead of schedule — and Carney suggested that those funds could fuel a similar program.
“Certainly my government would be looking at that going forward,” he said.
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