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Dear Friends,

I am pleased to share an important update regarding our government’s ongoing work to strengthen our economy, support local families, and protect Canadian workers and industries.

A Strong Economic Rebound

Today’s GDP numbers demonstrate positive momentum for Canada’s economy. Our real GDP rose by 3.3% at an annualized rate in the second quarter of 2026, while first-quarter growth was revised upward to 0.3%. This rebound was led by stronger exports, household spending, residential investment, and business capital investment- signs that Canada’s economy is growing even in the face of global uncertainty and trade volatility. Specifically, business capital investment rose by 2.3% in the second quarter, and exports rose by 3.6%.

Driven by real growth and a 10.1% increase in GDP inflation, nominal GDP rose by 13.8% in the second quarter, marking the largest increase in both GDP inflation and nominal GDP since the second quarter of 2022.

Our economic progress is earning global recognition:

• The IMF has confirmed that Canada is projected to have the second-fastest growth in the G7 this year.
• Canada now ranks as the most attractive country in the world for infrastructure investment.
• We have created jobs at eight times the per-capita rate of the United States.
• Wages have outpaced or matched inflation every month that this government has been in office, and non-U.S. exports are on track to double over the next decade.

As former editor-in-chief Matthew Winkler recently observed, Canada has outperformed its global peers since Mark Carney became Prime Minister, marking one of the greatest moments for overseas investment in our country in a century.
The National School Food Program: Supporting Quebec Families

As the new school year begins, our permanent National School Food Program is officially helping more children in Quebec access nutritious food at school while bringing down grocery costs for families. (The National School Food Program Act received Royal Assent on March 26, 2026, and is now law).

For the 2026-27 school year, we have doubled federal funding for provincial and territorial school food programs to $140 million annually. Through this program, we are helping provide meals to up to 400,000 more kids every year, with approximately 80% of provincial and territorial-operated schools (over 10,000 schools) offering these programs. On average, participating families with two children in school can save an estimated $800 a year on grocery bills.

This program is part of our broader, ongoing commitment to make life more affordable for Quebecers:

• The Canada Child Benefit is currently supporting 892,120 Quebec families, with eligible families receiving up to $8,157 annually for each child under 6 and up to $6,883 for each child aged 6 to 17.
• The Groceries and Essentials Benefit is providing direct relief to over 2.6 million people in Quebec, including more than 2.4 million who received the June top-up (averaging $260 in Quebec).
• In partnership with the provincial government, federal investments in early learning and child care have helped create 37,841 child care spaces in Quebec.
• Additionally, our government funded over 21,500 Canada Summer Jobs in Quebec in 2026, helping young people gain valuable work experience.

Standing Up for Our Industries: Expanding Tariff Relief

In a more uncertain world, Canada will keep investing in our greatest strengths: our workers, our businesses, and our capacity to compete. To date, our government has provided nearly $25 billion in tariff relief support to industries across Canada, and on August 25, 2026, we announced an additional $7.5 billion, bringing our total tariff relief package to nearly $32.5 billion.

This agile support package is structured to protect jobs, supply chains, and industries through several major channels:

1. The Regional Tariff Response Initiative (RTRI): We have added $1.5 billion to this initiative to ensure small and medium-sized enterprises (SMEs) can respond to new tariff pressures. This builds on $450 million announced in March 2025 and $500 million in May 2026.
2. The Strategic Response Fund (SRF): Building on the initial $5 billion launched in September 2025, we have invested an additional $2 billion to create the Canada Strong Diversification Fund for tariff-impacted businesses with shovel-ready projects.
3. Expanded Business Development Bank of Canada (BDC) Supports: To make relief more accessible, we have lowered the annual revenue requirement to $1 million for BDC’s direct tariff-related support programs (including the Pivot to Grow program and targeted programs for steel, aluminum, and forestry). This includes an additional $500 million liquidity stream through BDC’s Pivot to Grow program for tariff-impacted companies regardless of their sector. These programs build on prior investments, including $1.2 billion in softwood lumber supports in August 2025 and the $1 billion program launched in May 2026 for manufacturers using steel, aluminum, and copper.

Together, we will weather these challenges, united and resilient, and we will always be the masters of our own destiny.

Best,

Anthony