On May 13, 2025, Canada's business community is poised to closely observe the newly sworn-in cabinet of Prime Minister Mark Carney. Corporate leaders and business associations are eager to ensure Carney is held accountable for his commitments to nation-building projects and a renewed strategy regarding energy and environmental issues.
One of the primary figures to watch is François-Philippe Champagne, who continues as Minister of Finance after taking over before the federal election. Champagne is tasked with implementing a campaign platform promising approximately $129 billion in new measures projected to increase the deficit over the next four years. This includes a one percentage-point tax cut for individuals in the lowest income bracket. Moreover, Carney has pledged to separate the budget into operating and capital streams, aiming to balance the operating budget by the fiscal year 2028-2029 while running a $48 billion deficit on the capital side for that year. Additional promises include reducing the growth of government spending from nine percent to two percent while introducing new programs in response to ongoing trade tensions with the United States.
Another crucial aspect of Carney's administration involves the trade portfolio, which will be overseen by a trio of ministers: Chrystia Freeland, Dominic LeBlanc, and Maninder Sidhu. In light of the increasing importance of trade relations, these ministers will work on navigating Canada's path with the U.S. and addressing domestic trade barriers. Dominic LeBlanc, as the minister responsible for Canada-U.S. trade and intergovernmental affairs, will lead this effort. Freeland, known for her experience as the former Deputy Prime Minister, will serve as the new Minister of Transport and Internal Trade. Meanwhile, Sidhu will handle international trade matters.
The challenges they face were underscored by a recent meeting between Prime Minister Carney and U.S. President Donald Trump in the Oval Office. President Trump expressed that there was little Carney could do to sway him into dropping tariffs immediately imposed on Canadian goods. The discussion also touched on the need to renegotiate the Canada-United States-Mexico Agreement (CUSMA), with Carney acknowledging that changes may be necessary. Amid these tariff issues, Carney has indicated that dismantling internal trade barriers among provinces could potentially expand the Canadian economy by $250 billion, a goal he aims to achieve by Canada Day.
Another key minister to watch is Gregor Robertson, a former mayor of Vancouver, who has taken on the role of Minister of Housing and Infrastructure. This position places him at the forefront of the federal government's response to Canada’s current housing crisis. During the election campaign, the Liberal Party pledged to double the rate of residential construction over the next decade, aiming to build 500,000 homes annually. A significant highlight of their housing plan includes the introduction of a new entity termed Build Canada Homes, which is set to provide $25 billion in debt financing and an additional $1 billion in equity financing to companies specializing in prefabricated housing. This initiative aims to reduce construction times by up to 50 percent.
As the federal government steps into these pivotal roles, stakeholders from various sectors will undoubtedly be watching closely to see how these ministers implement their strategic plans against the backdrop of economic challenges and the pressing need for infrastructure development in Canada.
