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The C.D. Howe Institute predicts Ottawa’s recently announced spending plans — which include a much bigger defence budget — will drive its deficits markedly higher in the coming years. In a new analysis released Thursday, the think tank said it expects Canada’s deficit to top $92 billion this fiscal year, given Prime Minister Mark Carney’s plan to meet NATO’s defence spending target of two per cent of GDP.C.D. Howe expects deficit growth to slow after this year but predicts deficits will still average around $78 billion annually over four years — more than double the level forecast by the parliamentary budget officer before the spring federal election.But the report also considers this an “optimistic” scenario that takes into account “speculative savings” in the form of new revenues and cos...

Prime Minister Mark Carney is meeting with the heads of the Canadian auto industry as concerns mount over the ongoing impact of tariffs imposed by the U.S. The industry has been facing a 25 per cent tariff from the U.S. on the sector itself, as well as a 50 per cent duty on steel and aluminum, materials used in the manufacturing of vehicles.However, there are exceptions for components produced in the U.S.Carney will be meeting with representatives from the Canadian Vehicle Manufacturing Association, Ford Canada, Stellantis Canada and GM Canada during the talks on Wednesday. 5:31 Steel and aluminum measures announced to counter U.S. tariffs Bri...