TORONTO — The federal Liberal cabinet met this week to address significant budget decisions, public service adjustments, and the impact of U.S. tariffs on Canadian industries. Prime Minister Mark Carney's cabinet convened on Thursday for the second day of a two-day retreat in North York, a Toronto neighborhood. While media were allowed at the venue, ministers and their staff were kept away from reporters. The only sounds breaking the silence were leaks from the hotel ceiling during heavy rain on Thursday morning.

During the retreat, cabinet members received insights from various experts, including pollsters discussing the national sentiment, investment fund leaders on public-private partnerships, and energy executives, including Scotiabank Chief Economist Jean-François Perreault, who provided an economic outlook. Former Australian Prime Minister Kevin Rudd, now the ambassador to the U.S., also spoke about strategies for engaging with the Trump administration.

Finance Minister François-Philippe Champagne acknowledged the tough budget choices ahead. He stated, "Will there be tough choices to make? Definitely. Is the nation ready? I would say, yes." Champagne emphasized that the government plans to spend less to invest more, a message that resonated with the public during the campaign. However, he did not specify where cuts might occur, only indicating that the growth of government spending in recent years was unsustainable. He mentioned that there would be "adjustments" in public service as part of a plan to implement 15 percent cuts across all departments and agencies over three years. This term often refers to layoffs, as defined by the government’s workforce adjustment policy.

On the trade front, Minister Dominic LeBlanc, responsible for Canada-U.S. trade relations, declined to set a new deadline for concluding negotiations with the Trump administration. After missing previous self-imposed deadlines, LeBlanc stated, "We are working hard to make progress because we understand the importance for workers in all regions of Canada." He noted that Canada’s ambassador to the U.S., Kirsten Hillman, was in Washington D.C. this week to negotiate smaller, sector-specific agreements concerning tariffs on steel, aluminum, softwood lumber, and automobiles.

Industry Minister Mélanie Joly announced that assistance for sectors affected by U.S. tariffs would be forthcoming. She indicated that an announcement would be made in the coming days, particularly for the aluminum industry. Joly mentioned that the government is assessing potential major projects to support local steel, aluminum, and lumber industries, aiming to provide stability in the years ahead. She also highlighted the differences in needs between large corporations and smaller businesses, indicating a tailored approach to support.