Canadian Prime Minister Mark Carney said he would run wider budget deficits to finance spending and jolt an economy that has come under threat from US tariffs.
To offset the spending boost, Carney said around 5% of federal public sector jobs would be axed. The moves mark a radical departure for an economy that grew “too comfortable and too reliant on tariff-free trade with the US,” The Wall Street Journal reported.
Canada — which is part of a North American free-trade zone — sends more than 70% of its exports and receives around 50% of its imports from the US, which last week suspended ongoing trade talks and threatened additional tariffs over a Canadian ad criticizing US President Donald Trump’s protectionist policies.
