Canada’s federal budget will be tabled on Nov. 5 as trade war weighs on economy

Finance Minister François-Philippe Champagne announced during question period on Tuesday that the federal budget will be released on Nov. 5, two days after the U.S. midterm elections scheduled for Nov. 3. It will be Prime Minister Mark Carney’s second budget. Carney changed the federal budget schedule, moving it from spring to fall.

The date was announced after the Parliamentary Budget Officer lowered its economic growth outlook for 2026 and 2027. The PBO now projects GDP growth of 0.9 per cent this year and 1.5 per cent in 2027, down from 1.1 per cent and 1.6 per cent, respectively. It also projects a budgetary deficit of $63.3 billion for the 2026–27 fiscal year, with the deficit peaking at $70.2 billion the following year.

The projections come as U.S. tariffs and Canadian counter-tariffs remain in effect. The Republicans are two weeks from the midterm elections, scheduled for Nov. 3. The report says the trade war escalated after Carney had Canadian negotiators walk away in August from a trade deal that he said would have given the U.S. power to control who Canada could trade with.

U.S. President Donald Trump enacted tariffs of 50 per cent on Canadian goods in August, following through on a previous threat. Canada responded with new counter-tariffs. The report includes files from The Canadian Press.