Canada PM launches infrastructure push to counter Trump trade threats
Canadian Prime Minister Mark Carney has unveiled an ambitious plan to stimulate the country’s economy in response to trade tensions with the United States under President Donald Trump.
On the night he won the election in April, Carney famously told supporters, “Build, baby, build!” His government’s push is now taking shape with the launch of the Major Projects Office, tasked with overseeing the construction of ports, highways, mines, and potentially a new oil pipeline.
The office, which is expected to announce its priorities in the coming days, follows legislation passed with cross-party support allowing the government to fast-track “nation-building projects.” Carney described the initiative as urgent, saying, “We are moving at a speed not seen in generations.”
US tariffs on Canadian autos, steel, and aluminum have hit key sectors and contributed to job losses. Unemployment reached 7.1% in August, the highest outside the pandemic since 2016. RBC senior economist Claire Fan said the figures underscore the toll of the trade war on Canadian labour markets.
Since entering politics, Carney has emphasised reducing Canada’s dependence on US trade by boosting domestic commerce and pursuing new markets in Europe and Asia. Last month in Germany, he announced plans to unlock $500 billion in infrastructure investment across energy, ports, and other sectors.
Canada is the world’s fourth-largest oil exporter with the third-largest crude reserves. Most production is concentrated in Alberta, which relies heavily on US markets due to limited infrastructure. Unlike former prime minister Justin Trudeau, Carney supports exporting liquefied natural gas (LNG) to Europe, a move Energy Minister Tim Hodgson says has strong demand among German buyers.
Carney has described Canada as a potential energy superpower, but critics have raised environmental concerns. Greenpeace warns the plans back “climate-wrecking infrastructure,” while Indigenous leaders stress the need for proper consultation. Cindy Woodhouse, national chief of the Assembly of First Nations, urged caution: “Let’s take the time and do things properly.”
The government appears determined to press ahead with its construction and energy initiatives, balancing economic ambitions against environmental and community concerns.
