Canada's new budget aims to cut dependence on the US

Canada, which has borne the brunt of US President Donald Trump's protectionist trade policies, has introduced a new budget aimed at reducing its dependence on the United States. The budget, presented by Prime Minister Mark Carney's government on Thursday, has been framed as a plan for Canada to shape its own future.

Prime Minister Carney said the relationship between the two countries had changed permanently and that a return to tariff-free trade as it existed before the Trump administration was unlikely.

According to Finance Minister François-Philippe Champagne, the budget's main goals are to boost domestic trade and diversify international partnerships. It prioritizes energy production, critical mineral extraction and infrastructure development.

The budget also includes plans to support workers in the automobile and steel industries, which have been hit hard by US tariffs.

US Democratic Congressman Jamie Raskin said his party would work to remove tariffs on Canada and improve relations. However, Canada's Trade Minister Dominic LeBlanc made clear that tariff negotiations would take place with the White House, not with the US Congress.

Both Carney and Trump have expressed hope for a trade agreement, although earlier talks had stalled. The government expects the budget deficit to come in below the roughly CAD 78 billion projected last year.

The ruling Liberal Party, which previously needed opposition support to pass budgets, now holds a majority in parliament.