PM Mark Carney Unveils Plan to Strengthen Canadian Economy Amid U.S. Trade War

March 21, 2025 Alwin Marshall-Squire 0 Comments 2 min read

Ottawa – Prime Minister Mark Carney met with Canada’s provincial and territorial premiers today, outlining his government’s strategy to build a more integrated and resilient national economy in response to the ongoing trade war with the United States.

At the top of the agenda was the government’s commitment to supporting Canadian workers and businesses affected by U.S. tariffs. The Prime Minister detailed immediate relief measures, including temporarily waiving the one-week waiting period for Employment Insurance (EI), suspending separation rules for six months, and adjusting regional unemployment rate calculations to ease EI access.

For businesses, the government will defer corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025, injecting up to $40 billion in liquidity into the economy. Additionally, new financing facilities and increased funding for regional development agencies will help businesses navigate the economic downturn.

National Trade and Economic Corridor

A key focus of Carney’s plan is the development of a national trade and economic corridor designed to drive investment, create jobs, and build long-term economic growth. The plan includes:

First Mile Fund – A new initiative providing capital for infrastructure projects that connect energy extraction sites to transportation networks, expediting construction and fostering an integrated economy.
Streamlined Project Approvals – A “one-window” process for large-scale national-interest infrastructure projects, ensuring predictable and efficient reviews while maintaining high standards for safety, environmental protection, and Indigenous consultation.
Cedar LNG Facility – A $200 million federal contribution to the Haisla Nation and Pembina Pipeline Corporation’s Indigenous-led liquefied natural gas project, expected to generate $275 million in economic activity and create hundreds of skilled jobs.
Hudson Bay Railway & Port of Churchill Investment – A $175 million investment to expand trade routes through Manitoba, bolstering northern economic development and reconciliation efforts while improving access to global markets.

Breaking Down Interprovincial Trade Barriers

Carney also announced a July 1, 2025, deadline for new legislation aimed at eliminating federal barriers to interprovincial trade and labour mobility. The government plans to remove federal exemptions under the Canada Free Trade Agreement, harmonizing regulations to reduce costs for businesses and consumers while strengthening national supply chains.

“By working together, we can expand and build one more interconnected and resilient Canadian economy,” Carney said.

The Prime Minister and premiers agreed that by reducing barriers and unlocking economic projects, Canada can mitigate the impact of U.S. tariffs while creating high-paying jobs and maximizing its economic potential on the global stage.

GTA Today will continue to follow developments on this plan and its implications for Ontario businesses and workers.