Carney Unveils Infrastructure Boost as Trump Targets Canada's Economy
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Canadian Prime Minister Mark Carney announced that his government would push legislation to speed up "nation-building" infrastructure projects across the country, following a surge in tariffs by U.S. President Donald Trump targeting Canadian goods.
Carney outlined the strategy after what he called a "very productive" meeting with provincial and territorial leaders that focused on accelerating approval for key projects, according to the BBC.
Newsweek contacted the Canadian government for more information on the policy via email.
Why It Matters
The U.S. remains Canada's top trading partner, absorbing 75 percent of its exports, but the Trump administration's newly imposed steel, aluminum and auto tariffs have threatened decades of economic integration.
Canada's new infrastructure projects are designed to diversify its trade away from the U.S. and make the country more independent economically in response to what Carney described as an "unjustified and unlawful" U.S. trade policy.
President Donald Trump speaks to reporters alongside Canadian Prime Minister Mark Carney in the Oval Office of the White House on May 6, 2025, in Washington.
President Donald Trump speaks to reporters alongside Canadian Prime Minister Mark Carney in the Oval Office of the White House on May 6, 2025, in Washington.
Getty Images
What To Know
Carney's proposal, discussed at a summit with the country's premiers on Monday, would streamline the approval process for major national projects already under consideration.
The projects, which range from pipelines and nuclear reactors to infrastructure like railways and airports, are designed to make Canada, in Carney's words, "the strongest economy in the G7."
Carney said the new project framework would draw proposals from provincial governments and private-sector actors.
At the summit, Canada's premiers were united on the policy despite political differences, with Ontario Premier Doug Ford calling it "the best meeting we've had in 10 years" and Alberta Premier Danielle Smith, previously critical of the liberal government, expressing encouragement about the new approach.
The push for internal development comes after Trump's second administration has taken an aggressive trade stance toward Canada. Trump has ramped up tariffs while also claiming it should become the 51st U.S state, a suggestion that Carney and other Canadian politicians have rejected.
"We're in the process of redefining our relationship with the United States...the coming weeks and months will be critical," Carney said on Monday.
What People Are Saying
Candace Laing, president of the Canadian Chamber of Commerce, told Newsweek: "Ultimately, the end of this trade war with the U.S. will not come through the courts. It will come when we have negotiated a durable, new agreement on trade that is trusted and respected by all involved.
"Currently, there remains sectoral tariffs as well as other trade barriers on the table. Businesses in Canada and globally are awaiting a real and complete reprieve from trade disruptions, looking for lasting security, stability and resilience. The impact of tariffs continues to work its way through every level of the economy, leaving businesses and workers to face the punishing realities of uncertainty."
What Happens Next
Proposals from provinces and private companies will be reviewed in the coming months, with a stated deadline of less than two years for project approval. Trade negotiations with the U.S. are ongoing, led by Member of Parliament Dominic LeBlanc, minister of Canada-U.S. trade, intergovernmental affairs and One Canadian Economy.
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