Carney unveils budget to strengthen Canada's economy as Trump's trade war slows growth

OTTAWA, Ontario (AP) — Canadian Prime Minister Mark Carney’s government unveiled a budget Thursday aimed at making Canada less dependent on the United States as President Donald Trump’s trade war reshapes the allies’ economic relationship.

The budget, titled “Masters of Our Destiny,” proposes $142.1 billion Canadian (US$101.6 billion) multiyear spending and tax breaks, including incentives to attract investment and billions for energy, infrastructure and culture.

The government projects spending of $603 billion Canadian (US$431 billion) and a $62.3 billion Canadian (US$44.5 billion) deficit for 2026-27, $3 billion Canadian (US$2.1 billion) less than forecast in April.

Canada’s combined federal, provincial and local government deficits amount to 2.5% of its economy, compared with 8.5% in the United States, according to International Monetary Fund figures cited in the budget.

“The United States is upending global trade,” the budget declares.

It comes two days after Democrats gained control of the U.S. Congress in midterm elections, weakening Trump’s political position as the countries pursue a possible trade agreement.

The government expects Trump’s trade war to slow economic growth late this year and early next year, with the budget forecasting growth of just 1% in 2026 and 1.7% in 2027.

A previously announced tax incentive would allow businesses to immediately deduct qualifying investments, reducing Canada’s effective tax rate on new investment to 6.4%, less than half the comparable U.S. rate. The measure is estimated to cost $36 billion Canadian (US$25.7 billion) over five years.

Carney, a former governor of the Bank of Canada and the Bank of England, aims to double exports outside the United States by 2035 while forging closer ties with Europe and Asia.

The budget advances plans for Canada’s first national sovereign wealth fund, a $25 billion Canadian (US$17.9 billion) initiative to invest in Canadian companies and major projects.

It outlines $7.7 billion Canadian (US$5.5 billion) to strengthen Canada’s defense industry, with a goal of awarding 70% of military contracts to Canadian firms. Canada says it is on track to meet NATO’s target of spending 5% of GDP on defense and security by 2035, though the budget does not fully account for the cost.

Canada walked away from trade negotiations in August over U.S. demands that Carney said threatened Canadian sovereignty and cultural protections.

Canada Minister of Finance and National Revenue Francois-Philippe Champagne looks toward Prime Minister Mark Carney as he is applauded after delivering the federal budget speech in the House of Commons on Parliament Hill in Ottawa on Thursday, Nov. 5, 2026. (Justin Tang/The Canadian Press via AP)

Canada Minister of Finance and National Revenue Francois-Philippe Champagne and Prime Minister Mark Carney arrive in the House of Commons on Parliament Hill to table the federal budget in Ottawa, on Thursday, Nov. 5, 2026. (Justin Tang/The Canadian Press via AP)

EDMONTON, Alberta (AP) — Cutter Gauthier became the first Anaheim player with nine goals in a four-game span, scoring and adding an assist in the Ducks' 5-4 victory over the Edmonton Oilers on Thursday night.

Gauthier — coming off consecitive hat tricks — has seven power-play goals in the four-game span. Dating to 1933-34, the only other NHL players to accomplish the feat are Dave Andreychuk (8, Nov. 7-14, 1992) and Teemu Selanne (7, Oct. 25-31, 2008).

Pavel Mintyukov and Beckett Sennecke each had two goals and an assist for the Ducks, and Laurent Brossoit made 23 saves. They have won three in a row to improve to 8-7-1.

Connor McDavid, Evan Bouchard, Kasperi Kapanen and Leon Draisaitl scored for Edmonton. The Oilers (11-3-3) have lost two in a row.

Fourth-string goalie Matt Tomkins made 16 saves with Tristan Jarry out due to illness and both Devon Levi and Frederik Andersen injured. The Oilers became the first team in the NHL to dress a full-time emergency backup goalie, with Brett Epp sitting on the bench.

McDavid had three assists to extend his season-opening points and assists streaks to 17 games and give him an NHL-best 44 points. He's tied for the fourth-longest points streak to start a season in league history.

Ducks: At Calgary on Friday night.

Oilers: Host Vancouver on Saturday night.

See AP’s full NHL coverage here

Edmonton Oilers' Connor McDavid (97) scores against Anaheim Ducks goaltender Laurent Brossoit (31) during the second period of an NHL hockey game in Edmonton, Alberta, Thursday, Nov. 5, 2026. (Codie McLachlan/The Canadian Press via AP)

Anaheim Ducks' Tristan Luneau (67), Mikael Granlund, center, and Pavel Mintyukov, right, celebrate after a goal against the Edmonton Oilers during the second period of an NHL hockey game in Edmonton, Alberta, Thursday, Nov. 5, 2026. (Codie McLachlan/The Canadian Press via AP)

Vancouver Canucks' Marco Rossi (23) and Zeev Buium (8) check Anaheim Ducks' Cutter Gauthier (61) during the second period of an NHL hockey game, in Vancouver, British Columbia, Tuesday, Nov. 3, 2026. (Darryl Dyck/The Canadian Press via AP)

Anaheim Ducks' Cutter Gauthier (61), Beckett Sennecke (45) Jackson LaCombe (2) and Mikael Granlund (64) celebrate Gauthier's goal during the first period of an NHL hockey game against the Vancouver Canucks, in Vancouver, on Tuesday, Nov. 3, 2026. (Darryl Dyck/The Canadian Press via AP)

Anaheim Ducks' Cutter Gauthier celebrates his second goal against the Vancouver Canucks during the second period of an NHL hockey game, in Vancouver, on Tuesday, Nov. 3, 2026. (Darryl Dyck/The Canadian Press via AP)