Canada's plan to decrease economic dependence on the U.S.

Sunday 20 April 2025 - 12:15

By: Zahouani Ilham

Canada's plan to decrease economic dependence on the U.S.

Canadian Prime Minister Mark Carney has pledged to lower income taxes and increase infrastructure spending to reduce the country's economic reliance on the United States. In an electoral platform revealed on Saturday, the Liberal Party of Canada (LPC) promised to allocate 35 billion Canadian dollars this year to targeted investments in defense, housing, and support for workers and businesses affected by tariffs imposed by U.S. President Donald Trump.

Titled "A Strong Canada," the program, aimed at attracting voters for the upcoming April 28 election, plans investments of nearly 130 billion dollars over the next four years.

The Liberals also committed to reducing the deficit to approximately 59 billion dollars in 2026-2027, followed by further cuts to 54.7 billion in 2027-2028, and 48 billion in 2028-2029. The current deficit is estimated at 62 billion dollars.

To implement this program, the LPC plans to eliminate interprovincial barriers and cut domestic trade costs by up to 15%.