#chrystia-freeland

The federal government's latest Fall Economic Statement (FES) charts a course through Canada's affordability and housing crises with billions in new spending aimed at accelerating home construction and providing cost-of-living relief. The plan introduces significant tax credits for clean technology and manufacturing to stimulate business investment, framing it as a strategy for future growth. However, the update also projects continued deficits and a rising national debt, sparking criticism from opposition parties and business groups who question the fiscal prudence and inflationary impact of the new measures, setting the stage for a critical economic debate.

Canada is proceeding with its Digital Services Tax (DST), a 3% levy on revenue earned in Canada by large digital corporations, despite escalating threats of retaliatory tariffs from the United States. The U.S. government argues the tax unfairly targets American tech giants and is preparing potential countermeasures. The Canadian government defends the tax as a matter of fairness, ensuring that companies profiting from Canadian users contribute their fair share. This standoff places significant strain on Canada-U.S. trade relations and could have wide-ranging economic consequences for key Canadian export sectors if tariffs are imposed.