Country set to unveil PM Mark Carney’s spending plan as it battles trade war with US and protracted cost of living crisis

Canada’s ruling Liberal party has said a budget of “sacrifice” is required to confront both a trade war with the US and a protracted cost of living crisis that threatens to push the country into a recession. But with opposition parties signalling they won’t support the fiscal plans of the prime minister, Mark Carney, a failed parliamentary vote on the budget could plunge the country into another federal election in the coming weeks.

The country’s finance minister, François-Philippe Champagne, will on Tuesday unveil a spending plan his government has signalled will include both steep deficits and spending cuts. Few details have leaked ahead of the announcement, which will mark the first substantive look at how Carney plans to avoid a recession while locked in a trade war with the US, Canada’s biggest economic partner.