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The Canadian Finance Ministry on Thursday unveiled Budget 2026, introducing a suite of measures, including significant tax cuts, to kickstart an "investment supercycle" aimed at strengthening economic sovereignty and global competitiveness. Themed "Masters of our destiny," the budget outlines plans to mobilize 400 billion Canadian dollars (about 285 billion U.S. dollars) in capital investments over six years to attract global capital and boost productivity. A centerpiece of the plan is a "productivity mega deduction," alongside other major tax reforms, that will cut the marginal effective tax rate on new business investment from 13 percent to 6.4 percent, the lowest among major world economies. The measure will allow businesses of all sizes to fully deduct the cost of most new investments. To strengthen Canada's position as a global energy powerhouse, the federal government plans to invest 50 billion Canadian dollars to double the country's electricity grid capacity by 2050, while increasing investment in nuclear energy and critical minerals. In defense, targeted investments under a defense industrial strategy and a defense drone program are expected to raise military spending to 4 percent of GDP within this decade and to 5 percent by 2035. The budget also allocates more than 50 billion Canadian dollars over 10 years to advance reconciliation with Indigenous peoples and ensure stable, long-term funding for core Indigenous programs. On the fiscal front, the federal government projects a deficit of 62.3 billion Canadian dollars for the 2026-2027 fiscal year, with annual deficits expected to remain above 50 billion Canadian dollars in each of the following four years. However, the budget pledges to balance day-to-day operating spending with revenues by 2027-2028, a year ahead of schedule, while keeping the debt-to-GDP ratio on a declining path. In addition, the budget includes 22 billion Canadian dollars in new affordability measures and sets out a 10-year plan to end homelessness. (1 Canadian dollar = 0.71 U.S. dollars)

Canadian Prime Minister Mark Carney said Monday that trade discussions with US President Donald Trump’s administration had intensified slightly, but any progress reflected Washington’s movement closer to Canada’s position. The remarks came eight days before the US midterm elections, as White House economic adviser Kevin Hassett suggested that the two countries were nearing a trade deal. “To the extent any progress has been made, it's because the U.S. is coming closer to our position,” Carney said. The office of Canadian Trade Minister Dominic LeBlanc said Canada remained engaged in “constructive dialogue” with Washington. Carney described a “slight, slight intensification” in the discussions but stressed that Canada’s negotiating position had not changed. He also acknowledged that he could not be certain Trump would honour a new trade agreement. Asked whether the US president would “sign in pen,” following Carney’s earlier warning that Washington’s signature was sometimes “written in pencil,” he replied, “I don't know that.” Canada rejected Washington’s terms in August after the two countries appeared close to reaching an agreement. Carney said the proposed terms crossed Canada’s “red lines.” Trump subsequently imposed 50% tariffs on roughly $20 billion worth of Canadian goods, prompting retaliatory measures and further trade restrictions. On Friday, Trump said he would remove some 50% tariffs on Canadian goods while imposing new tariffs on dozens of other products. Two days later, addressing a campaign rally in Michigan, he said Canada was “willing to give us anything at this moment” and predicted that a deal would be reached “pretty soon.” Trump also told a Detroit television station that an agreement could be reached before the midterm elections, although negotiations might take months to conclude. The tariffs have emerged as an issue in closely watched Senate races ahead of the elections. In a campaign advertisement in Michigan, Republican candidate Mike Rogers said Canada was “not our enemy” and called for an end to the trade dispute, saying, “we need to end this tariff war now.” In Maine, Republican Senator Susan Collins urged the Trump administration to ease tariffs on Canadian goods used by farmers and other businesses. Washington announced exemptions on Friday. Trump has repeatedly criticised the US trade deficit with Canada, although energy trade more than accounts for the gap. The United States imports millions of barrels of Canadian oil every day, typically at a discount, while maintaining a trade surplus with Canada when energy is excluded. Trump has also sought to persuade automakers to shift production from Canada to the United States, threatening an industry that has been deeply integrated across the two countries for decades. Trump’s trade war and repeated threats to make Canada the 51st US state have prompted Carney to pursue alternative export markets. The Canadian prime minister has set a goal of doubling the country’s exports to markets outside the United States over the next decade. Carney is scheduled to host European Union leaders in Montreal on Thursday and Friday to pursue closer economic and security ties. European Commission President Ursula von der Leyen has proposed making Canada the EU’s first associate member, although the status has yet to be defined.

Canadian Prime Minister Mark Carney said Wednesday that US President Donald Trump’s tariffs have increased costs for American families and disrupted a decades-old trade relationship as he announced a multibillion-dollar plan to protect Canada’s manufacturing heartland from the trade war. Carney also said he had spoken with Trump for “quite some time” about trade and other issues, as the US Embassy in Canada accused Canadian politicians of attempting to influence American politics ahead of next month’s midterm elections. Both Carney and Ontario Premier Doug Ford rejected allegations of improper interference. Trump has openly expressed his desire to shift automobile production from Canada to the United States, threatening an industry that has been deeply integrated across the border for decades. “US tariffs have upended a trade bargain that’s existed for decades,” Carney said. “They’ve raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty.” Carney said an integrated North American automotive industry would benefit both countries, but acknowledged that Washington might no longer consider it a priority. “Their approach has changed,” he said. “So must ours.” Carney said his conversation with Trump covered Iran, the Middle East and several trade issues. The two leaders had discussed Ukraine a few days earlier. Although Carney gave no indication of a breakthrough, he said Canada remained ready to negotiate. Trade negotiations collapsed in August after the two countries appeared close to reaching an agreement. Trump subsequently imposed 50% tariffs on about $20 billion worth of Canadian goods, prompting retaliatory measures from Canada. Ford says Canada-US relations will not return to previous state Ford said Canada’s relationship with the United States had undergone a permanent change. “It’s clear that Canada’s relationship with the United States has changed permanently,” Ford said. “No matter what happens in the midterms, no matter who sits in the White House, we’re not going back to the way things were.” Trump’s trade war and repeated threats to make Canada the 51st US state have fuelled a surge in Canadian nationalism. Carney has prioritised reducing Canada’s dependence on the United States, setting a target of doubling exports to other markets over the next decade. Billions allocated to protect Canadian industries Carney and Ford announced an 8.7 billion Canadian dollar ($6.2 billion) plan to support steelmakers, automakers and critical mineral development in Ontario, the country’s manufacturing heartland. The package includes CA$5.2 billion ($3.7 billion) over five years for steelmakers and CA$2.5 billion ($1.8 billion) for automakers, including CA$1.5 billion ($1.1 billion) in federal funding. The announcement came as US-owned steelmaker Cleveland-Cliffs announced layoffs at its plant in Hamilton, Ontario, highlighting the impact of Trump’s tariffs on Canadian manufacturing. US Embassy accuses Canadian politicians of interference Also on Wednesday, the US Embassy issued a fact sheet accusing Canadian politicians of seeking to interfere in American elections. The statement singled out Industry Minister Mélanie Joly for discussing retaliatory tariffs targeting Republican states and Ford for broadcasting a US advertisement featuring former President Ronald Reagan criticising tariffs. Trump abruptly cancelled trade talks with Canada after the advertisement aired during the World Series in October 2025. The embassy also cited 11 Canadians charged with illegally voting in US elections between 2012 and 2026, without linking the cases to the Canadian government. The Trump administration has launched a government-wide effort to investigate and prosecute noncitizen voting, which election experts and administrators describe as a relatively minor issue. The US Department of Justice says it has arrested more than 200 people since the beginning of 2026 for illegally voting as noncitizens in past elections. The number is extremely small compared with the country’s tens of millions of regular voters. “The items featured in the US embassy’s ‘fact sheet’ are not genuine examples of foreign interference and the implicit assumption that Canada could significantly alter the outcome of the midterms is absurd,” said Daniel Béland, a political science professor at McGill University in Montreal. “Accusing Canada of foreign interference ahead of the midterms could pave the way to ‘Blame Canada’ rhetoric after the electoral results are in.” Carney said Canada was responding to US tariffs, while Ford denied having any interest in interfering in American elections. Carney said Canadian automotive exports to the United States had declined by more than 10%, while US exports to Canada had fallen by more than 20%. “Tariffs make both our industries weaker and reduce choice for our families,” Carney said.

Voters in Canada's oil-rich province of Alberta have rejected a proposal to begin a process toward independence, results showed early Tuesday, delivering a victory for Prime Minister Mark Carney and supporters of Canadian unity amid U.S. President Donald Trump's trade war and annexation threats. The vote was not a direct referendum on independence but would have set oil-rich Alberta on a path toward a future vote on separation from Canada. With more than 1 million votes counted, about 76% supported remaining in Canada, compared with 23% who backed beginning a process that could lead to separation. "We are a solid country that's united from coast to coast to coast," Thomas Lukaszuk, a former Alberta deputy premier who led the Forever Canadian campaign against separation, told supporters. Results were delayed after late openings forced more than 100 polling stations to extend voting hours Monday. More than 1.35 million Albertans, or 43% of eligible voters, cast advance or special ballots. Albertans were deciding whether to remain in Canada or begin a legal process that could have lead to a second vote on separation. Alberta, home to the world's fourth-largest proven oil reserves, is cowboy country and a conservative stronghold whose political culture has long had more in common with the American West than much of Canada. Resentment toward Ottawa runs deep, but has not traditionally translated into widespread support for independence. Dustin Degenhardt, a Wainwright voter, said Albertans have long been mistreated by Ottawa. "Alberta has essentially been treated as, you know, a colony," he said after voting Monday. "They want to take and take and take from us and not return anything." Taylor MacIsaac, another Wainwright voter, backed separation. "I think it'll be good for Alberta to separate personally, as a very conservative individual that grew up in rural Alberta," she said. Dave Malka, 59, of Edmonton, criticized spending money on a "referendum on a referendum" rather than health care. With Trump threatening Canada, Malka said, "It seems to be happening at the absolute worst time when we should be united; instead we're fighting among ourselves." Jake Graham, 35, of Calgary, attended a Carney rally wearing maple leaf pants and a Canada hockey jacket. He hopes the vote ends the debate. "I hope this squashes this for a long time to come and that it's clear and decisive, that these grumblings disappear for a while and we can be a united Canada," he said. Despite the proposal's apparent failure, separatist leaders have said they turned a fringe cause into a movement that will not disappear. Carney earlier urged Albertans to deliver a decisive vote for unity. "Vote like Canada's future depends on it because it does," he told a rally Friday in Edmonton, where he grew up. Alberta Premier Danielle Smith called the referendum amid pressure from separatists within her governing United Conservative Party, even though she opposes independence. She cited a poll showing just 22% support for separation, a figure she said was still too high. Separatist parties traditionally attracted only 1% or 2% of the vote, former Premier Jason Kenney said. Anger over COVID-19 restrictions helped mobilize activists who later embraced the separatist movement, he said. Trump's trade war and threats to make Canada the 51st U.S. state have helped Carney rally support in Alberta, where Liberal prime ministers have historically been unpopular. Separatist advocate Jeff Rath said he would be thrilled if 30% of Albertans voted to begin the separation process. He wants Smith ousted as leader of her governing United Conservative Party and said the party could splinter, potentially creating a new pro-independence party.

Voters in Canada's oil-rich Alberta province will decide Monday whether to launch a process that could eventually lead to independence, testing national unity as US President Donald Trump's trade war and threats to make Canada the 51st state have strengthened Canadian patriotism. Monday's vote is not a direct referendum on independence. Instead, Albertans will decide whether to remain a province or begin the legal process toward a future referendum on separation. Alberta holds most of Canada's proven oil reserves, the fourth-largest in the world. More than 1.35 million Albertans, representing 43% of eligible voters, cast advance or special ballots ahead of Monday's vote, far exceeding the 810,000 who voted early in the 2023 provincial election. Even if voters reject the proposal, separatist leaders say the movement, which has grown from a fringe cause into a significant force in provincial politics, will continue. Canadian Prime Minister Mark Carney urged Albertans not to take the outcome for granted, calling for a decisive result as he concluded two days of campaigning in his home province. "Vote like Canada's future depends on it because it does," Carney told a pro-Canada rally in Edmonton on Friday, where he grew up. The vote also comes as Alberta mourns four service members killed in a fire at Canadian Forces Base Wainwright over the weekend. Another 39 people were injured, including 19 critically, during military training. Carney described the incident as one of the worst peacetime tragedies involving Canada's military on domestic soil and ordered flags lowered to half-staff nationwide. Alberta Premier Danielle Smith, who called the referendum despite opposing independence, recently cited a poll showing that only 22% of Albertans supported separation, a figure she said was still too high. Carney draws cheers with calls to diversify trade Carney received his loudest cheers at rallies in Calgary and Edmonton when he spoke about reducing Canada's trade dependence on the United States. The enthusiastic response highlighted how Trump's trade war and threats of annexation have fuelled Canadian nationalism, even in traditionally conservative Alberta. Carney has emerged as an unusually popular figure in the province, where Liberal prime ministers have long faced resentment over federal energy policies. He has adopted a more energy-friendly approach, backing a proposed oil pipeline to the Pacific Coast and joining Smith in opposing Alberta's separation from Canada. Carney warned that the referendum was taking place at the "worst possible time" and urged Albertans not to use their votes simply to send a message to the federal government in Ottawa. Smith, who frequently clashed with former Prime Minister Justin Trudeau, praised Carney for improving relations with Alberta. "I think what we can agree on is that we have had some real change in the last 18 months," she said Friday. Smith opposes separation despite pressure from party activists Smith called the referendum despite opposing independence, reflecting pressure from separatist activists within her governing United Conservative Party who helped bring her to power. Some of the activists also helped remove former Premier Jason Kenney in 2022. Kenney said separatism had traditionally remained a fringe movement, with independence parties typically securing only 1% or 2% of the vote. He said the COVID-19 pandemic mobilised activists angered by public health restrictions and government authority. Separatist leader Jeff Rath said federal COVID-19 vaccine mandates pushed him towards supporting independence. Tanya Clemens, co-chair of the Let Alberta Decide group, said pandemic restrictions encouraged political organising. The group's other co-chair, Keith Wilson, was a lead lawyer for the 2022 trucker convoy that paralysed downtown Ottawa for weeks in protest against vaccine mandates and other COVID-19 restrictions. Energy policies at centre of Alberta's grievances Wilson said Alberta's grievances extend beyond pandemic-era restrictions. With much of Canada's population concentrated in Ontario and Quebec, he argued that Liberal governments can win federal elections without significant support from Alberta, leaving the province vulnerable to policies opposed by its energy industry. He cited Carney's proposed Pacific Link pipeline as an example of the problem, arguing that federal restrictions have discouraged private investment and could leave taxpayers financing the project. Wilson said he opposed Alberta becoming part of the United States. "I have no interest in substituting a master, that rules over my children's future, who's in Ottawa, with a new one who's in Washington," he said. Other separatist leaders have sought contact with the Trump administration. Rath and fellow independence advocates have met US State Department officials in Washington three times to discuss Alberta's future. Chief Sheldon Sunshine of Sturgeon Lake Cree Nation said Alberta could not leave Canada without the consent of First Nations, citing treaties that predate the province's creation. He said his nation would remain part of Canada even if Albertans voted for independence. Sunshine condemned separatist leaders' meetings with US officials. "It's absolutely treasonous to the people of Canada, people of Alberta," he said. Separatists see gains regardless of vote outcome Wilson said the referendum campaign had sparked unprecedented discussion about Alberta's place within Canada. "I think we've already hit success when you look at the voter turnout," he said. "People are engaged and people are talking about this topic at a level that's unprecedented historically." Rath said he would be thrilled if 30% of Albertans voted to begin the separation process, even if the proposal failed to secure a majority. He wants Smith removed as United Conservative Party leader and said the party could split, potentially paving the way for a new pro-independence political party. Separation debate may continue beyond Monday's vote Some Albertans hope Monday's vote will end the debate rather than trigger a prolonged independence struggle similar to Quebec's. Dave Malka, a 59-year-old Edmonton government employee who attended a pro-Canada rally on Sunday, criticised spending money on what he called a "referendum on a referendum" when the funds could instead be used for healthcare. With Trump threatening Canada, Malka said the vote was coming at the wrong time. "It seems to be happening at the absolute worst time when we should be united, instead we're fighting amongst ourselves," he said. Malka expects voters to reject the proposal decisively but fears separatists will continue their campaign. "This is only the start of separation Armageddon, if you will. This is their starting point," he said. Jake Graham, 35, of Calgary, attended Carney's rallies wearing maple leaf-patterned pants and a Canada hockey jacket. He said he hoped a decisive outcome would settle the issue. "I hope this squashes this for a long time to come and that it's clear and decisive, that these grumblings disappear for a while and we can be a united Canada," he said.

Four service members were killed and dozens of others seriously injured in a fire at a military base in Canada's Alberta province, Prime Minister Mark Carney said on Sunday, describing the incident as one of the country's worst peacetime military tragedies on home soil. Firefighters rushed to the scene late Saturday as strong winds drove flames beyond Canadian Forces Base Wainwright into nearby rural areas. The Canadian military said there was no indication that the fire was linked to terrorism, though its cause remained under investigation. In a televised address, Carney said the families of the four deceased service members had been notified and the situation was still developing. The personnel were taking part in military training when the fire broke out on Saturday. Carney said flags on federal buildings across the country would be flown at half-mast in honour of those affected. The casualties included reservists and soldiers from Princess Patricia's Canadian Light Infantry, one of Canada's most renowned military regiments. They had travelled from bases across the country to participate in training at Wainwright. The exact number of injured personnel was not immediately known. Carney said the wounded were receiving treatment in Wainwright, Edmonton, Red Deer and Calgary. Cathy Keane, a mayoral candidate in Ontario, said her eldest son was among those critically injured and that she was travelling to Alberta to be with him and her family. Dr Warren Thirsk, an emergency department physician at Edmonton's Royal Alexandra Hospital, told CBC News that hospitals around the base had been overwhelmed by the number of patients requiring treatment. Acute Care Alberta said several hospitals across the province had activated a “Code Orange”, an emergency designation for incidents involving multiple seriously injured patients requiring coordinated care. Emergency medical resources were stretched so thin that very few ambulances remained available in the Edmonton area. The agency urged people to avoid the University of Alberta Hospital emergency department if possible. Wainwright Mayor Bruce Pugh said the town's small hospital was not equipped to handle a mass-casualty incident but praised local medical workers for their response. Helicopters and aircraft were transporting patients to other facilities for treatment. Defence Minister David McGuinty said the Royal Canadian Mounted Police were involved in the investigation and described the situation as “very, very active and delicate”. He was travelling to Edmonton on Sunday to receive a briefing on the latest developments. The RCMP said officers were called shortly after 4pm on Saturday following reports of a fire in a training area at the base. Firefighters faced challenging conditions as a windstorm battered large parts of Alberta, with gusts reaching 100 kilometres per hour. The strong winds toppled trees, sent signs flying and pushed rubbish bins along streets. By 11pm, the Municipal District of Wainwright said the fire was being contained and that property and critical infrastructure were protected. No evacuation order had been issued for local residents. Alberta Premier Danielle Smith described the fire as “significant and tragic”, while Saskatchewan Premier Scott Moe said his province was sending assistance to Alberta. Carney praised emergency crews who battled the blaze overnight, adding that STARS air ambulance helicopters had flown in from Edmonton and Saskatoon. Canadian Conservative opposition leader Pierre Poilievre said he had spoken with Carney and the defence minister to offer support to those affected. He also urged residents to follow emergency instructions and keep roads clear for first responders. The fire also disrupted advance voting ahead of Monday's referendum on whether Alberta should begin a process that could eventually lead to independence from Canada. Elections Alberta said the advance polling station at Wainwright Communiplex closed early on Saturday, with ballots and election materials transported securely. Polling stations in Lloydminster and Vermilion were identified as alternatives. CFB Wainwright is one of Canada's busiest military training facilities, hosting realistic battlefield exercises and training programmes for soldiers preparing for combat operations.

A major fire at a Canadian military base in Alberta left people dead and injured on Saturday, with hospitals reportedly struggling to cope with a large influx of casualties. Firefighters battled the blaze late into the night as strong winds pushed flames beyond Canadian Forces Base Wainwright into nearby rural areas. The number of people killed or injured was not immediately known. Dr Warren Thirsk, an emergency department physician at Royal Alexandra Hospital in Edmonton, told CBC News that hospitals across the city were receiving patients as healthcare facilities near the base became overwhelmed. “It’s a disaster. It’s a one in every 15- to 25-year disaster,” Thirsk said, describing the scale of the emergency. Canadian Defence Minister David McGuinty confirmed the casualties but said authorities were still trying to establish what had happened. Speaking to reporters in Ottawa, he described the situation as “very, very active and delicate.” The Royal Canadian Mounted Police (RCMP) said officers were called shortly after 4pm on Saturday following reports of a fire in a training area at the base. Police were involved in the investigation, while members of the Canadian Armed Forces were also at the scene. McGuinty said he could not recall a similar incident in recent memory and that authorities would provide further details in the coming hours and days. Firefighters faced difficult conditions as a windstorm swept across large parts of Alberta, with gusts reaching 100 kilometres per hour. The winds toppled trees, blew signs over and sent garbage cans rolling through streets. By 11pm, the Municipal District of Wainwright said the fire was being contained and that property and critical infrastructure had been protected. No evacuation order had been issued for residents. The town of Wainwright, near the base, has a population of about 7,000. Saskatchewan Premier Scott Moe said his province was sending assistance to Alberta but did not specify what resources would be provided. “Our thoughts are with all the brave women and men affected,” Canadian Prime Minister Mark Carney said in a social media post. Alberta Premier Danielle Smith described the fire as “significant and tragic,” saying it had affected many military personnel. Conservative opposition leader Pierre Poilievre said he had spoken with Carney and the defence minister to offer support to those affected. He also urged people in the area to follow emergency instructions and keep roads clear for first responders. Canadian Forces Base Wainwright is one of the country's busiest military training facilities. It houses the Canadian Manoeuvre Training Centre, which conducts realistic battlefield exercises, and the 3rd Canadian Division Training Centre, which provides military training. The fire also disrupted advance voting ahead of Monday's referendum on whether Alberta should begin a process that could lead to independence from Canada. Elections Alberta said two polling stations, in Lloydminster and Vermilion, closed early on Saturday, with the ballots transported securely.

Three people were killed and 19 injured Thursday in a fiery, mid-day chain reaction crash on a busy street in Calgary that left two transit buses on fire, authorities said. Police Staff Sgt. Andy Woodward said the tragedy appears to have begun after a transit bus slammed into a car that then hit other vehicles. He said the bus then bounced from that crash, through the intersection and hit a transit bus parked at a bus stop, setting off a fire and sending the second bus across the road to collide with three more vehicles. He said the second bus was powered by natural gas, which is believed to have caused the fire. Video and photos circulating online showed the second bus with its roof completely on fire as thick smoke billowed skyward. The front end of the bus that set off the chain reaction crash appeared crumpled and smashed, its steering wheel hanging out below a tuft of flames. “I’ve been a police officer for 36 years and I think this is probably the biggest scene I’ve worked on in relation to the collision we’ve got here,” Woodward said. Nineteen people were injured in all, including 10 who were taken to hospital via ambulance, as well as the three deceased. A police officer was also injured and sent to hospital. “It was a very busy scene,” Loria said. Calgary Mayor Jeromy Farkas said on social media that there will be a full investigation. Alberta Premier Danielle Smith shared condolences online. “My sincere thoughts are with the families of those who died and with everyone injured,” she said.

US-Canada relations are likely to face further strain after the United States early Tuesday implemented a ban on nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products and motorcycles. The ban represents only a small portion of the nearly $880 billion in annual two-way trade between the neighboring countries. However, it marks another escalation in President Donald Trump's second-term trade war with a longtime US ally and trading partner. The latest measure took effect at 12:01 a.m. Eastern time Tuesday and follows Trump's decision to impose 50% tariffs on about $20 billion worth of Canadian imports over allegations that Canada discriminates against US dairy, auto and alcoholic beverage producers. Canada responded with tariffs ranging from 15% to 50% on US imports. To punish Canada for retaliating against the US tariffs, Trump ordered the ban on a list of Canadian products. Trade attorney Patrick Childress, a partner at Holland & Knight and former US trade official, said the move would not help ease trade tensions between the two countries. Jacob Jensen, director of trade policy at the center-right American Action Forum think tank, estimates that the ban covers about $967 million worth of Canadian imports based on 2025 figures. About 87% of the affected goods are alcoholic beverages, which were targeted after some Canadian provinces responded to Trump's measures by removing US alcohol from store shelves. The ban also covers some dairy products, including whey, as well as motorcycles. The two countries have long disagreed over Canada's protection of its dairy industry through high tariffs once imports exceed established quotas. Bombardier Recreational Products (BRP), based in Quebec, confirmed that its three-wheel Can-Am Spyder and Canyon motorcycles would be excluded from the US market. However, the company said the impact may not be felt until next year as most production and shipments for the current season have already been completed. Jensen said the latest measure marked another escalation in the trade war and could prompt further retaliation from Canada. He said affected Canadian exporters and US importers would likely push trade officials on both sides to find a resolution. The standoff also threatens efforts to renew the US-Mexico-Canada Agreement (USMCA), the North American trade pact negotiated during Trump's first term that allows most goods to move across the region's borders duty free. Since returning to the White House last year, Trump has announced a series of tariffs, creating uncertainty over the future of regional trade. He has particularly targeted Canada and has repeatedly suggested that the country could become the 51st US state. Canadian Prime Minister Mark Carney, who came to power last year promising to stand up to Trump, has retaliated against US tariffs while seeking to reduce Canada's dependence on the US market. The United States accounted for more than 70% of Canadian exports last year. “There is now a price to be paid for access to the United States market,” Carney said earlier this month, as he pledged to double Canada's non-US trade over the next decade. Carney has also backed the possibility of Canada becoming the European Union's first associate member and said trade negotiations with India were making “good progress,” with the two countries aiming to conclude talks by the G20 summit in mid-December. Canada also struck a deal with China earlier this year allowing a limited number of Chinese electric vehicles into the Canadian market at a reduced tariff in exchange for China lowering tariffs on Canadian canola. Gabriel Brunet, a spokesman for Canada's Trade Minister Dominic LeBlanc, said the government’s priority remained protecting Canadian workers, farmers, families and businesses from what it called unjustified US measures. Trump, meanwhile, expressed confidence that Canada would eventually agree to a deal. “I think a deal will be made but it's gonna be fair,” he told reporters Monday. Trade attorney Childress said the standoff could continue for months rather than weeks, noting that the bans and tariffs imposed so far may not cause enough economic disruption to force either side back to the negotiating table.

Four people were killed when a helicopter crashed southeast of Montreal in Canada's Quebec province on Saturday, provincial police said. The helicopter reportedly experienced difficulties before crashing around 2:30pm in Sainte-Brigide-d’Iberville, about 50 kilometres southeast of Montreal, said Audrey-Anne Bilodeau, a spokesperson for the Sûreté du Québec. Firefighters brought the blaze under control within an hour, but all four people aboard the helicopter were pronounced dead at the scene, she said. Police have not yet identified the victims or determined the cause of the crash. Bilodeau said the helicopter appeared to be a private aircraft. The Transportation Safety Board of Canada has sent investigators to the crash site to determine the circumstances surrounding the accident.