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Canada to Launch $36 Billion Infrastructure Fund in Upcoming Budget

Canada's Prime Minister Mark Carney speaks during a press conference, on the sidelines of the 47th ASEAN Summit in Kuala Lumpur, Malaysia, October 27, 2025.   Canada’s federal government is preparing to unveil a sweeping $36 billion infrastructure fund as part of its upcoming budget. The initiative will target housing, transportation, and healthcare projects , aiming to stimulate economic growth while addressing pressing national needs. The fund represents one of the most significant infrastructure commitments in recent years. By channeling billions into local projects, Ottawa hopes to ease housing shortages, modernize public transit, and expand healthcare facilities . These investments are also expected to create jobs and provide long-term economic benefits, particularly in rapidly growing urban centers. In addition to infrastructure spending, the budget is anticipated to include measures to phase out older military fleets in order to reduce maintenance costs, while simultane...
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Trump's America First Trade Policy Targets Canada's Digital Services Tax

In a move that could further strain trade relations between the U.S. and Canada, President Donald Trump has signed an executive order targeting Canada's digital services tax (DST). The DST, enacted by the Liberal government last June, imposes a three percent tax on revenues over $20 million generated in Canada by foreign-based digital giants with incomes of at least $1.1 billion.

Trump's executive order directs the U.S. Treasury and Commerce departments, along with the United States Trade Representative, to investigate whether foreign countries are subjecting American citizens or corporations to discriminatory or extraterritorial taxes. This move is part of Trump's America First Trade Policy, which aims to ensure that America's trading relationships benefit American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.

Business groups on both sides of the border have opposed the DST, and the Biden administration had previously requested dispute settlement consultations with Canada under the Canada-United States-Mexico Agreement (CUSMA). However, the consultation period ended in November without further action. Trump's executive order could reignite the dispute, with potential tariffs or other unilateral actions against Canada.

The DST is one of the principal frictions in the trading relationship between the U.S. and Canada, and experts believe that Trump's administration is likely to take action until the tax is withdrawn or an agreement is reached. The Canadian Chamber of Commerce has urged the Canadian government to scrap the tax in response to Trump's executive order.

As the investigation proceeds, the future of Canada's digital services tax remains uncertain, and the potential for increased tariffs or other trade measures looms large.

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