Canadian Prime Minister Mark Carney said Tuesday that Canada intends to emerge from its trade war with the United States as a more resilient and independent economy, while stressing that future cooperation with Washington must be based on respect for both countries’ sovereignty.“And to our American friends, let me say this. We will always be neighbours,” Carney told hundreds of global investors gathered in Toronto for the Canada Investment Summit.“But we are at our best when we are true partners that respect each other’s traditions and sovereignty,” he said, adding that when opportunities for closer cooperation return, “Canada will be an even better partner, stronger, more resilient, more independent.”Carney did not name US President Donald Trump in the speech but criticised what he described as an increasingly transactional and zero-sum approach to international economic relations.“Our reputation — as a reliable, predictable partner — has rarely been more valuable in a world where transactions are replacing relationships, and zero-sum is favoured over win-win,” he said.
Canada seeks to attract private investment
Carney also announced plans to seek private investment through long-term concessions to operate Canada’s four largest airports, Toronto, Montreal, Calgary and Vancouver, while retaining public ownership of the underlying land and assets.He said the move could raise tens of billions of dollars that could be reinvested in transportation and other infrastructure.“We will retain ownership of the underlying land and assets, but we will unlock their true value, by bringing in new capital and expertise into their operations and growth,” Carney said.Two asset managers cited by Reuters said that they would be interested in investing in the airports. Canadian labour groups, however, have opposed privatisation, arguing that it could increase costs for travellers.Carney is hosting global investors in Toronto as Ottawa seeks investment in more than 160 projects that it considers important to steering the economy through the trade war with the US.
New tax incentives for investment
Carney also announced that Canadian businesses would be able to immediately write off the cost of most new capital investments for tax purposes.The measure would cover about two-thirds of all assets, including machinery, manufacturing equipment, software, patents, research and development, pipelines, fibre networks and rail networks, Reuters reported.“The effect is straightforward. When you invest in Canada, you can deduct substantially more of that investment immediately,” Carney said.According to the Canadian government, the measure will reduce the country’s marginal effective tax rate on new business investment from about 13% to 6.4%, which it said would be the lowest among major economies and less than half the rate in the US.Carney has pledged to attract C$1 trillion in investment over the next five years by reducing red tape and developing projects in mining, energy, technology and infrastructure.He also reiterated his commitment to speeding up reviews of major projects.“Canada will remain a country of high standards. But high standards do not require slow decisions,” he said.
Ottawa keeps door open to Washington
Despite the trade tensions, Carney said around 80% of Canada-US trade remains tariff-free and suggested that a mutually beneficial agreement was still possible.“There is a mutually beneficial arrangement that can be had,” he said during a fireside chat after his speech. “When it is the right time to strike that deal, we’ll be ready to do that.”Trade talks between the two countries collapsed last month before Washington imposed 50% tariffs on about $20 billion worth of Canadian goods. Ottawa retaliated, while the US subsequently announced additional restrictions on Canadian products, according to news agency AP.Carney has argued that economic integration and national sovereignty are increasingly in tension and that countries seeking to preserve their independence need to strengthen ties with like-minded partners.
Europe becomes a bigger part of Canada’s strategy
Carney was scheduled to travel to Europe later Tuesday, where he would address the European Parliament as Canada seeks deeper economic and strategic ties with the European Union.Canada is seeking a partnership with the EU that could include an arrangement allowing Canadians to live and work in Europe without visas, according to an AP report citing a senior Canadian official familiar with the discussions.Ottawa is not seeking EU membership or a model identical to the arrangements Norway or Switzerland have with the bloc. Instead, Canada wants a partnership tailored to its priorities, with investment at its core, the official said.About 70% of Canadian exports go to the US, making Europe central to Ottawa’s efforts to reduce its dependence on the American market.Canada and the EU already cooperate in areas including trade, defence, energy, technology and critical minerals. Bilateral trade stood at about $147 billion in 2025, making the EU Canada’s second-largest trading partner.Carney has ruled out EU membership and said Canada wants “a unique alliance” with the bloc.His European trip comes as Ottawa seeks to strengthen alternative economic partnerships while continuing to leave the door open for a future agreement with Washington