Federal budget will see a reduction in expenses, assures Carney
Canada Announces Tariff Reductions and Focus on Economic Growth
In a significant move, Canada has announced that many of its tariffs on goods that comply with the Canada-United States-Mexico Agreement (CUSMA) will come down starting from September 1. This follows the announcement made by Prime Minister Mark Carney on August 1, regarding the removal of retaliatory tariffs on US goods compliant with CUSMA.
In other economic news, the federal government has announced the creation of a new government agency, Build Canada Homes, with the mandate to build more homes across the country. The Major Projects Office, established under the Building Canada Act, will also advance projects of national interest. The government has emphasised its focus on reducing its operational budget, which includes day-to-day costs, and promoting large-scale investment in the upcoming federal budget.
Prime Minister Carney has expressed concern over the government's spending, stating that it has been growing at an average rate of over 7% per year for over a decade, which he considers unsustainable. In an effort to address this, Carney has stated that the government will try to find efficiencies in federal spending to create room for large investments.
Meanwhile, the Liberal cabinet is expected to focus on the government's strategy for navigating the ongoing trade war initiated by U.S. President Donald Trump. Carney had a "long and constructive conversation" with Trump on Monday about various subjects, including geopolitical issues and the economy and commerce between Canada and the United States.
In addition, the cabinet will discuss boosting Canada's defense industries. The Liberal cabinet will also start preparations for the CUSMA review process, scheduled for 2026.
Conservative Leader Pierre Poilievre has called for cuts in consultants, bureaucracy, corporate welfare, foreign aid, handouts to fraudulent refugees, and other wasteful spending in the government. He has also expressed doubt that Carney would be able to bring the deficit down.
The government's plans do not include any information about ending the temporary foreign worker program or the arson incident in Richmond Hill that resulted in the death of an 11-year-old child. No information about the wages and salaries data, two fathers pleading for reconsideration of deportation, or the weak condo market was provided in the paragraph.
In summary, Canada's focus is on reducing tariffs, promoting economic growth through housing and large-scale investment, and finding efficiencies in federal spending. The government is also preparing for the CUSMA review process and discussions on boosting defense industries and navigating the trade war initiated by the U.S. President. The Conservative Leader has called for cuts in wasteful spending, while expressing doubt about the deficit reduction plans.
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