Canada First: Carney Preps for Trump Showdown and Domestic Reboot
Prime Minister Mark Carney outlined his government’s top priorities during his first news conference since winning a minority mandate in the April 28 federal election.
Speaking in Ottawa, Carney emphasized the need to strengthen Canada’s economic and national resilience, restore housing affordability, and ensure security, while preparing for early talks with U.S. President Donald Trump.
Carney will meet Trump on May 6, calling it an “early but important” meeting, and promised to stand firm on Canadian interests. He acknowledged ongoing tensions over trade but said his government would not be rushed into a bad deal. He pledged to dismantle internal trade barriers by July 1 to boost productivity and economic unity across provinces.
“The best way to counter external pressure is to make our own economy stronger,” Carney said, pointing to nation-building projects and productivity reforms as cornerstones of his domestic strategy.
The Prime Minister also confirmed plans to swear in a new, gender-balanced cabinet the week of May 12. Parliament will reconvene on May 26, with the Speech from the Throne delivered by King Charles III on May 27. He committed to calling a byelection quickly to allow Conservative Leader Pierre Poilievre — who lost his own riding — a path back to Parliament, while ruling out any formal governing deal with the weakened NDP.
“We will work with all parties in good faith,” Carney said, “but the mandate Canadians gave us was to govern with clarity and conviction.”
To address the cost of living, Carney reiterated his commitment to cutting the lowest federal tax bracket by one percentage point by Canada Day. His government will also eliminate the GST on new homes under $1 million for first-time buyers and expand dental care to cover eight million Canadians.
Tackling Canada’s housing crisis remains a central focus. Carney pledged to create a new public-private entity — Build Canada Homes — which will support modular housing development and offer up to $25 billion in financing for developers. He described it as part of “the biggest economic transformation since World War II.”
On national security, Carney promised to hire 1,000 additional Canada Border Services officers and 1,000 RCMP officers. He also plans to introduce tougher bail laws for serious offences like human trafficking and car theft. His defence platform includes a $31 billion increase in military spending and a goal to meet NATO’s 2% of GDP target by 2030.
Finally, Carney confirmed he will cap the number of temporary immigrants — including international students and foreign workers — at 5% of Canada’s population by 2028. This marks a significant reduction from the current 7.3% and aims to ease pressure on housing and public services. He stressed that immigration must align with Canada’s capacity to support newcomers effectively.