— CARNEY COURTS EVERYDAY INVESTORS: Carney teased out a major plank of today’s statement on Monday, announcing the Canada Strong Fund, which he billed as a Sovereign Wealth Fund that would launch with a $25B investment from the feds. The plan was fleshed out today, including a route for retail investors to partake and a planned return for taxpayers.

Michael Ingoldsby, Senior Consultant: Early responses to the Canada Strong Fund have focused on how its mandate will fit alongside the proliferating suite of agencies and institutions intended to unlock investments across Canada. Those questions are fair and the announced review of existing institutions should help address that concern. In the meantime, like the Victory bonds during WWII, the Fund will provide an opportunity for Canadians to support their country during what is an unsettling time. That is a genuine positive for the country. Expect Canadians to surprise the cynics with how much they step up and contribute.

— LESS DEFICIT, MORE SPENDING: The Spring Economic Update posts a slightly better-than-projected deficit for 2025-2026. It is now $11.5B lower than expected. Future deficits, however, remain on par with previous budgets due to newly announced spending.

Robin MacLachlan, President: An ambitious agenda to expedite major project development requires an equally ambitious plan to build the skilled workforce to do the work. A signature piece of today’s update is the major investment in the skilled trades. The apprenticeship training grant and completion bonus provide incentives to workers who must put down tools and put a pause on pay-cheques to upgrade their skills in the classroom. Combined with a boost to the Labour Mobility Tax Credit the Carney government is betting big on the skilled trades.

— LIBERALS LEVEL SET CUSMA: In an interview with CBC that aired earlier this week, Carney said tariffs on key industries like steel and automotive violated the existing free trade agreement. He also made it clear that he won’t be ‘chasing a small deal’ to get U.S. tariff relief. 

Bryce McRae, Senior Consultant: With an unpredictable negotiating partner in Washington and U.S. congressional midterm elections on the horizon, Prime Minister Carney is no longer projecting short-term optimism on a sweeping CUSMA reset. He is placing the blame squarely on U.S. tariffs, while doubling down on industry support and diversification in the spring update. This level set buys time but the government must watch public support closely in case it slips if no CUSMA deal or sectoral tariff relief materializes.

— AFFORDABILITY ON OFFER? The government announced it would reduce fuel prices at the pump in an announcement ahead of today’s release, but the update didn’t go much further on ‘new’ affordability measures. 

Christine Burke, Vice President & Digital Lead: Affordability remains the issue on Canadians’ minds. By teasing “good news” before the update, the Prime Minister raised expectations for meaningful relief. With recent national polling showing Canadians believe the government has fallen short on affordability, today was a chance to deliver. Instead, the update offered little that will tangibly lower the cost of living for households already feeling squeezed.

— OPPOSITION REACTION: Opposition reaction is perhaps less consequential for this government now that it has a majority. It does show, however, how the Conservatives intend to adapt their strategy to play a longer game. It also previews at how NDP Leader Avi Lewis plans to carve out his space on the left.

Josie Sabatino, Vice President: Conservative Leader Pierre Poilievre set the stage for today’s Spring Economic Update on Sunday, when he called for an end to the federal government’s “credit card budgeting.” Expect the Official Opposition to continue to pressure the Carney government to commit to a plan to balance the budget in the medium term. They will likely focus on spending reductions on specific initiatives, including the gun buy-back program, foreign aid, and corporate subsidies.

Bryce McRae, Senior Consultant: With a majority government now in place, the Conservatives no longer need to worry about inadvertently triggering an election. This will result in a shift in the opposition’s dynamics and strategy. A fiscal hawk by nature, Poilievre now has room to be sharper and more sustained in pressing the deficit case. This update, which Conservatives see as a deficit document dressed in nation-building language, gives Poilievre plenty to work with. 

Claire Smith, Senior Consultant: Avi Lewis may not have a seat in the House, but that didn’t stop him from weighing in on the Spring Economic Update. Lewis centred his criticism around the cost-of-living crisis, the failure to expand pharmacare, and the government’s refusal to raise taxes on Canada’s wealthiest individuals and corporations. In sum, New Democrats accused Carney of subsidizing the private sector with public funds, rather than supporting the public interest.

— AI RISKS AND REWARDS: The government did not provide clarity on the timeline for release of the expected AI strategy, but said it would be structured around six general pillars that Minister of AI Evan Solomon unveiled in a recent speech. 

Claire Smith, Senior Consultant: Last spring, PM Carney’s government inaugurated its mandate by heralding AI’s transformative potential for Canadians’ careers. A year later, the Spring Economic Update reflects a more balanced tone. It’s no coincidence that the very first pillar focuses entirely on protecting Canadians and safeguarding our democracy.