Canada’s 2025 elections marked a Liberal comeback under Mark Carney, defeating Conservatives and responding firmly to U.S. trade tensions under Donald Trump.

The tariff war with the U.S. is ravaging several economic sectors — autos, metals, appliances and consumer goods — so a major revenue drop is all but certain. Increasing spending amid that reality seems bound to result in a record-setting deficit.

It’s long been a point of contention, but that hasn’t stopped President Donald Trump from frequently—and publicly—expressing his desire to annex Canada and have it become the 51st U.S. state. The idea has been firmly shut down by former Canadian Prime Minister Justin Trudeau and his successor,

The C.D. Howe Institute, a Toronto-based think tank, said last week that based on Carney’s spending commitments and the Bank of Canada’s economic outlook, Canada could post average annual budget deficits of 86 billion Canadian dollars, or the equivalent of $63 billion, over a four-year time period.

Fall 2024 was a turbulent time for North American politics, and new polling shows how Canadians felt about the federal government at the time. David Akin explains how U.S. President Donald Trump's election win led to a divided and nervous electorate in Canada during the twilight of former prime minister Justin Trudeau's tenure.

As much as U.S. President Donald Trump loves to exercise power by executive order, rather than leaving lawmaking up to the U.S. Congress, it is becoming increasingly obvious that Canada’s very own Prime Minister Mark Carney loves governing by the Canadian equivalent – the order-in-council.

In the Donald Trump era, Canadians say it's no longer enough to just be proud of their heritage. It's time to stand up and proclaim it.

Canada's democracy is in crisis but Canadians don't seem to care. What looks like complacency, however, may actually be the result of decades of institutional drift and managed inertia.