Finance Minister says 2026 budget will focus on Canadian growth, not U.S. trade war

Finance Minister François‑Philippe Champagne told a pre‑budget event in Toronto on Monday that the federal budget slated for Thursday will prioritize building Canada’s economy and expanding trade ties rather than reacting to the United States‑Canada trade dispute.

Focus of the budget

Champagne said the budget will include "affordability measures" aimed at easing pressures from global events such as the war in Iran and the U.S. trade conflict. He added that the government will work to make Canada more sovereign, invest in growth and support Canadians in need.

"We have seen in trade, we have seen how the world has been changing, and for me this has been a moment for us as Canadians to … talk about building, investing in growth, (making) sure we’re more sovereign, supporting Canadians at a time of need, diversifying our trade," Finance Minister François‑Philippe Champagne said.

Trade negotiations backdrop

President Donald Trump said over the weekend that the two sides share a "concept" of an agreement and that a deal is close, suggesting negotiations that broke down in late August may resume.

What comes next

The Liberal government will deliver its second budget, often called the "sophomore" budget, on Thursday. The document is expected to outline the promised affordability measures and detail steps to diversify trade relationships and increase defence spending, though specific figures have not been released.

Finance Minister François‑Philippe Champagne says the upcoming budget will centre on domestic economic resilience and trade diversification amid U.S. tensions.