Canada will invest in border as deficit balloons, dollar weakens

WATERTOWN, New York (WWNY) – Canada will spend $1.3 billion on securing its border with the United States. It’s an investment to stave off tariff threats from U.S. President-elect Donald Trump.

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The money was announced as Ottawa released its Fall Economic Statement Monday. It aims to implement stricter bail and sentencing laws and take assault-style weapons off the street.

Trump has said 25% tariffs are coming against Canada if the country doesn’t improve border security and stop the huge flow of drugs and illegal immigrants into the United States.

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Ontario Premier Doug Ford said Monday the looming tariffs are the greatest threat to the Canadian economy right now and that hundreds of thousands of jobs could be affected if they are enacted.

The $1.3 billion in spending and tariff threats come as Canada’s debt balloons.

Monday’s economic statement shows the country’s deficit sits at $62 billion.

Leading up to its release, former Finance Minister Chrystia Freeland repeatedly said the deficit would come in at $40 billion. Freeland quit Prime Minister Justin Trudeau’s cabinet Monday just before this economic data was released. Freeland said that she and Trudeau don’t see eye to eye and that he wanted to replace her as finance minister.

The surprise resignation put Ottawa into what politicians called chaos Monday. Others are calling for Trudeau to resign, or call for a federal election.

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Michael Barrett, a conservative member of Parliament representing the Thousand Islands area, is just one member calling for an election.

“The finance minister posted a $62 billion deficit that Canadians are going to be paying for for generations. These liberals have lost control and this flailing Prime Minister doesn’t have the confidence of his cabinet or Canadians. When is he going to call for a carbon tax election?” said Barrett.

Following Freeland’s resignation and the economic data showing Canada’s increasing debt is a dip in the value of the loonie.

For the first time since the onset of the COVID-19 pandemic, the Canadian dollar dipped below $0.70 U.S.

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