Canadian Prime Minister Mark Carney announced a goal for Canada to double its non-U.S. exports within the next decade, aiming to diversify trade amid rising tariffs and trade tensions with the U.S.

Canada, a major energy supplier to the U.S. with significant oil, natural gas, steel, aluminum, and uranium reserves, is seeking to reduce its reliance on the U.S. market.

A Canadian-U.S. free trade agreement review scheduled for 2026 will be a key event in the context of these economic shifts.

The upcoming federal budget, set for November 4, will focus on 'generational investments' in security, infrastructure, and social programs, but faces a confidence vote in the House of Commons.

Support for the budget depends on opposition parties, including Bloc Quebecois and NDP, and failure to pass it could trigger another federal election.

Prime Minister Carney's address will highlight the difficult choices needed to meet ambitious spending goals, including increased defense and infrastructure investments.

The budget will also feature a refreshed climate strategy balancing economic growth with emission reductions, responding to previous criticisms from the energy sector.

The expected deficit, driven by increased government spending on defense and infrastructure, is compounded by a decline in revenues due to the removal of tariffs and recent tax cuts.

Conservative leader Pierre Poilievre advocates for a budget not exceeding $42 billion, emphasizing affordability and tax cuts, though economists suggest it may be higher.

Canada faces a significant fiscal deficit, projected between C$70 billion and C$100 billion for 2025/26, the largest in decades outside recession periods.

The deficit-to-GDP ratio is expected to nearly double from previous projections, indicating substantial fiscal challenges ahead.

Carney will deliver a speech in Ottawa outlining Canada's strategy to strengthen its economy amid these fiscal and trade pressures, including efforts to diversify trade away from the U.S.