Carney says major projects coming to combat trade war ‘crisis’

Carney Says Major Projects Coming to Combat Trade War ‘Crisis’: Canada’s Bold Response to U.S. Tariffs

Canadian Prime Minister Mark Carney has outlined a series of ambitious infrastructure initiatives aimed at shielding the economy from the escalating trade war with the United States. In a statement on September 10, 2025, Carney announced the first wave of major projects to be fast-tracked under a new federal law, describing the situation as a “crisis” triggered by U.S. President Donald Trump’s tariffs. This move comes amid fears that the tariffs could plunge Canada into recession, disrupting key sectors like auto manufacturing, steel, and agriculture. Carney’s plan focuses on expanding ports, rail lines, liquefied natural gas (LNG) facilities, and critical mineral mines to diversify trade partners and boost domestic production. As Canada navigates this “rupture” in global trade, these projects are positioned as nation-building efforts to create jobs, enhance energy security, and reduce reliance on the U.S. market. With announcements rolling out over the coming days, including a new housing agency, this strategy signals a shift toward protectionism and self-sufficiency. Let’s explore the details, the economic backdrop, and the potential impacts.

Carney, who assumed office in April 2025 after winning the Liberal Party leadership, has made countering Trump’s trade policies a cornerstone of his agenda. During his first month, he pushed through legislation allowing swift regulatory approvals for projects deemed in the national interest, aiming to permit them within two years. Speaking in Edmonton, Alberta, Carney emphasized, “We will create economic opportunities that help Canadians not just manage through this crisis—we will manage through the crisis.” This comes as U.S. tariffs on Canadian goods—ranging from 10-25% on steel, aluminum, and autos—threaten to cost billions and eliminate thousands of jobs. On social media, reactions range from support for Carney’s proactive stance to skepticism about funding and timelines, with users like @Oldman6062 warning of potential new taxes disguised as climate measures.

The Trade War ‘Crisis’: How U.S. Tariffs Are Hitting Canada

The ongoing trade tensions between Canada and the U.S. have intensified since Trump’s return to the White House in January 2025. Tariffs on key exports have created immediate economic pain, with projections estimating a 1-2% hit to Canada’s GDP if unresolved. Carney has labeled this a “fundamental and rapid transformation” of trading relationships, affecting sectors exposed to U.S. markets, which account for about 75% of Canadian exports. For instance, the auto industry, centered in Ontario, faces 25% duties on vehicles and parts, potentially leading to plant closures and 50,000 job losses. Steel and aluminum tariffs, reimposed at 10%, have already prompted retaliatory measures from Ottawa.

Broader impacts include rising costs for consumers and businesses. Tariffs on agricultural products like canola have squeezed farmers in the Prairies, while lumber duties affect B.C.’s forestry sector. Carney’s government estimates the total economic fallout could reach $100 billion annually if the trade war escalates. In response, Canada has expanded its Regional Tariff Response Initiative from $450 million to $1 billion, providing relief to small and medium-sized enterprises (SMEs) hit hardest. This funding supports retraining workers and retooling production lines to pivot toward markets in Europe, Asia, and Latin America.

Carney’s rhetoric frames the crisis as a “rupture” rather than a mere transition, urging a rethink of free trade assumptions. In a September 5 speech, he warned of a “profound” shift, announcing measures to restructure vulnerable industries like autos by pausing the zero-emissions vehicle mandate for 2026 and launching a 60-day review. Social media echoes this urgency, with posts like @timethief sharing the Bloomberg article and tagging #cdnpoli to highlight the political stakes.

Major Projects Unveiled: Fast-Tracking Infrastructure for Diversification

On September 11, Carney detailed the initial tranche of five “nation-building” projects, selected for their potential to “turbocharge” the economy and mitigate trade war damage. These initiatives leverage the new fast-track law to bypass lengthy environmental and regulatory hurdles, targeting completion within two years. The focus is on energy, transportation, and resources to open new export routes and stimulate domestic demand.

Key projects include:

• LNG Expansion in Kitimat, B.C.: The LNG Canada facility will double in size, boosting exports to Europe and Asia. This $40 billion project, already under construction, aims to capitalize on global demand for cleaner energy alternatives to Russian gas. Carney highlighted it as a way to “secure Canada’s future” amid U.S. LNG competition.
• Port of Montreal Upgrades: A $2.5 billion expansion to handle increased container traffic, reducing bottlenecks and facilitating trade with Europe. This will create 5,000 jobs and enhance rail connectivity to inland hubs.
• Critical Mineral Mines in Northern Ontario and Quebec: Investments in lithium and nickel extraction to supply the global EV battery market, diversifying from U.S. demand. These projects, valued at $10 billion, include Indigenous partnerships and aim to position Canada as a key player in the green transition.
• Nuclear Reactor in Ontario: A small modular reactor (SMR) at the Darlington site, part of a $13 billion federal-provincial plan to provide clean energy and export technology. This addresses domestic power needs while opening doors to international sales.
• Rail Line Expansions: Upgrades to trans-Canada rail networks, including connections from Alberta oil sands to Pacific ports, to ease exports to Asia. Estimated at $15 billion, this counters U.S. border delays from tariffs.

Notably absent are new oil pipelines, a nod to environmental concerns and past political divisions under former PM Justin Trudeau. Carney stressed that public funds will “catalyze many multiples” of private investment, with the government committing $20 billion initially. On X, @baystreetoracle shared an image of the announcement, sparking discussions on economic resilience.

Additionally, Carney launched Build Canada Homes, a government agency set for next week, to spur a “new housing industry” using Canadian materials and labor. This addresses the housing crisis while creating 100,000 jobs.

The ‘Buy Canadian’ Strategy: Protectionism Meets Industrial Renewal

Complementing the projects is Carney’s “Buy Canadian” policy, unveiled on September 5, which mandates federal procurement from domestic suppliers. This includes requiring Canadian lumber for government contracts and extending preferences to steel and autos. Provinces and municipalities are encouraged to adopt similar rules, with Ottawa providing a roadmap. Carney argued that outdated free trade rules no longer apply, stating, “Canada’s public procurement is following rules of a free trade order that no longer exists.”

This protectionist shift includes $1 billion for tariff-hit businesses, worker retraining, and a pause on EV mandates to protect the auto sector. Carney also pledged to eliminate interprovincial trade barriers, streamlining domestic commerce. Environmentalists criticized the LNG focus as tying Canada to a “polluting past,” while Conservatives like Pierre Poilievre slammed it as moving in the “wrong direction.” X user @BiagioAlfano11 questioned the timeline, asking if Carney can “get it done sooner” amid market volatility.

This table summarizes the initial projects, drawing from government announcements and media reports.

Economic and Political Implications: Jobs, Growth, and Risks

These initiatives could generate tens of thousands of jobs and add 1-2% to GDP growth by 2027, per government estimates. By focusing on “strategic sectors,” Carney aims to build “climate competitiveness,” revising policies to protect vulnerable industries. The temporary foreign worker program will be refocused on high-need areas, countering Poilievre’s calls to scrap it entirely.

Risks include environmental backlash, with groups like Environmental Defence decrying LNG as a “dangerous mistake” in a climate crisis. Funding could strain budgets, potentially leading to austerity or new taxes, as speculated on X. Politically, it bolsters Carney’s image as a steady hand against Trump, but opposition from Conservatives and Indigenous groups over consultations could arise.

Globally, this aligns with efforts like the Assembly of First Nations’ involvement in mineral projects, promoting inclusive growth. As @fx11115 shared the Yahoo article, it underscores international interest in Canada’s pivot.

Reactions and Next Steps: From Praise to Criticism

Carney’s plan has drawn mixed responses. Supporters, including business leaders, praise the fast-tracking as essential for competitiveness. French officials have expressed interest in Canadian LNG, per recent meetings. Critics, like Poilievre, argue it favors big government over free markets, pledging to “legalize” pipelines if elected.

Next, Carney will launch Build Canada Homes and expand the Major Projects Office in Calgary. A 60-day EV policy review and provincial buy-in efforts are underway. On X, @VotapLtd linked to the Bloomberg piece, tracking sentiment on the policy.

Conclusion: A Strategic Gamble in Uncertain Times

Mark Carney’s declaration that major projects are coming to combat the trade war ‘crisis’ represents a pivotal moment for Canada’s economy. By fast-tracking LNG expansions, port upgrades, and resource developments, the government seeks to turn adversity into opportunity, fostering diversification and job growth amid U.S. tariffs. While the ‘Buy Canadian’ push and housing initiatives add layers of protectionism, success hinges on execution, environmental balance, and international partnerships. As Carney navigates this “rupture,” these efforts could redefine Canada’s global standing—or face backlash if costs escalate. With announcements continuing this week, Canadians will watch closely as the plan unfolds.