Prime Minister Mark Carney’s first federal budget comes at a time when Canada’s businesses are facing heightened economic and policy uncertainty. Given Canada’s long-established trade relationships with the United States, particularly within energy and manufacturing, the ongoing trade dispute continues to be a source of economic anxiety and uncertainty. This volatility has highlighted Canada's pre-existing structural economic challenges, notably chronically weak productivity and insufficient private investment. These issues, present even prior to the recent escalation of trade tensions often associated with "Trump 2.0," have been exacerbated, stressing the urgent need for decisive action, especially concerning global market diversification.

Billed as a “generational investment opportunity,” Prime Minister Carney is seen to be attempting to demonstrate a “steady hand” during tumultuous times. This approach is underpinned by a clear national strategy focused on three core imperatives echoing nation-wide: rapidly accelerating infrastructure development (building things faster), aggressively expanding into overseas markets, and dismantling internal trade barriers to improve domestic efficiency.

Despite the ambitious framing, the business community has specific concerns regarding fiscal stability and taxation. Given ongoing federal budget deficits, businesses are looking for assurances of a back-to-balance plan that keeps Canada’s favourable credit rating in order to keep borrowing costs manageable without future increases in taxation, although it is important to note that the budget does not provide a plan to return to balance. Finally, businesses are seeking policy and regulatory certainty, a long-term trade deal with the U.S., and new trade infrastructure that facilitates exports to overseas markets.