Canada’s 2025 budget invests in supply chain resilience, AI and trade infrastructure

The federal government’s 2025 budget includes major investments aimed at strengthening Canada’s supply chain, from trade corridors and port infrastructure to workforce development and digital innovation.

The budget allocates $5 billion over seven years for the Trade Diversification Corridors Fund to improve the flow of goods across Canada’s ports, railways and highways, and $14.8 million for a new pre-clearance regime to modernize security screening for transportation workers. Fulvio Fracassi, president and CEO of the Halifax Port Authority, said the measures will “improve operational capacity and efficiency, providing Canadian manufacturers and exporters with greater access to international markets.”

Budget 2025 also extends the Student Work Placement Program, supporting youth placements in trucking and logistics.

“This signals a clear understanding of the connection between Canada’s competitiveness, employers building their talent pipeline and youth getting meaningful work-integrated learning opportunities,” said Angela Splinter, CEO of Trucking HR Canada.

The budget includes more than $110 billion in productivity-enhancing investments over five years, including reforms to the Scientific Research and Experimental Development tax incentive program, and $925.6 million to expand Canada’s public AI infrastructure. The Ontario Chamber of Commerce welcomed the measures as a boost to investment, R&D and innovation but noted a lack of funding for SME adoption supports and AI upskilling.

The government also introduced $5 billion for the Strategic Response Fund to help businesses navigate trade pressures and diversify operations. The OCC said targeted supports are essential to preserve industrial capacity and shield Canadian companies from U.S. tariffs and global trade uncertainties.