Canada’s 2025 federal budget, and those that follow in the coming years, may prove to be the most important since the beginning of the Second World War.
Canada’s longstanding, co-dependent economic relationship with the United States has abruptly and involuntarily ended following U.S. President Donald Trump’s imposition of tariffs and threats of annexation.
These actions have forced Canada to rethink its economic future and reduce its dependence on the U.S. Canada can no longer assume that 75 per cent of its merchandise exports will go to the U.S. in key sectors like energy and manufacturing, which together accounted for 19 per cent of Canada’s GDP in 2023.
