Barry Ellsworth
04 September 2026•Update: 04 September 2026
Canada announced C$4.7 billion (US$3.4 billion) in manufacturing investment Thursday as it seeks to reduce its reliance on the US amid growing trade tensions between the two countries.
Prime Minister Mark Carney called the announcement a “historic investment” and said it marked another step toward strengthening domestic production.
Canada sends roughly C$400 billion in exports to the US annually, accounting for about 65%-75% of its total exports.
The C$4.7 billion will be used to build 313 railway cars as part of efforts to modernize Canada’s rail system. The announcement was made in Thunder Bay, Ontario, where the cars will be manufactured.
Carney said the project would rely on Canadian workers and materials, including steel.
“(Rail) cars that used to be built in the US will be built right here in Canada,” he said. “All Canadian … when Canada needs it the most.”
Trade talks between Canada and the US broke down last week after Carney ordered Canadian negotiators to return home from Washington. He said the US had sought concessions that would infringe on Canadian sovereignty, including requiring US approval before Canada signs future trade agreements with other countries.
Canada is also set to hold an investment summit Sept. 14-15 focused on energy, critical minerals, defense and advanced technology, the Globe and Mail daily reported. About 250 chief executives representing global companies with nearly $120 trillion in assets are expected to attend.
During a question-and-answer session, Carney was asked about remarks by US Commerce Secretary Howard Lutnick, who accused him of derailing the trade talks for political leverage. Carney said he deals directly with the US president, not unelected officials such as Lutnick, whom he said does not understand Canadian politics.
Carney was also asked about the US inviting Russian President Vladimir Putin to the upcoming G20 summit.
He said the host country could invite whomever it wished, but added that Canada’s message to Putin would be simple: “Get out of Ukraine.”
