The federal government will table its next budget on Nov. 5, the first budget since trade talks with the United States stalled earlier this year.

Finance Minister François-Philippe Champagne announced the date during Question Period on Tuesday.

It will be the second budget under Prime Minister Mark Carney, and the second consecutive budget that will be delivered in the fall after the Liberals moved to a fall budgetary cycle last year.

The federal government’s spring economic update , which was tabled in April, projected a $65.3 billion deficit for the 2026-2027 fiscal year.

The update also projected a lower-than-expected deficit — $66.9 billion in the 2025-2026 fiscal year compared with the $78.3 billion that was originally projected — for the 2025-2026 fiscal year.

At the time, Champagne said the lower deficit was due to a resilient economy that has been stronger than expected. Canada’s real gross domestic product grew by 1.7 per cent last year and the country avoided a recession, even as U.S. tariffs put downward pressure on the economy.

Elevated global commodity prices, especially oil, also led to a boost in revenues and contributed to the windfall.

However, November’s budget will come amidst new economic challenges.

It will be the first budget since trade talks with the U.S. broke down on Aug. 22, which led U.S. President Donald Trump to impose new 50 per cent levies on $27.6-billion worth of Canadian goods. The Liberal government responded with its own dollar-for-dollar countermeasures on Sept. 8.

Many economists believe economic growth will slow as businesses deal with heightened uncertainty. A new report from the Office of the Parliamentary Budget Officer said Canada’s real gross domestic product growth will slow to 0.9 per cent by the end of the year and 1.5 per cent in 2027.

It will also be the first budget since the Canada-U.S.-Mexico Agreement wasn’t renewed on July 1, which kicked off up to 10 years of annual reviews.

Higher energy prices caused by geopolitical tensions have also lifted Canada’s inflation rate past the central bank’s two per cent target in recent months. Inflation has been running hot since May, and it edged up again to 3.1 per cent in September after remaining flat at three per cent in August and July.

Core inflation, however, has remained relatively stable. CPI-median dipped to 1.9 per cent in September from two per cent in August, while CPI-trim fell to 1.8 per cent in September from 1.9 per cent.

Bank of Canada governor Tiff Macklem previously said that, while there is limited evidence to suggest higher energy prices have led to generalized inflation, the risks are higher the longer energy prices remain elevated. Monetary policy may need to be adjusted to keep inflation close to the two per cent target.

The Bank of Canada’s overnight rate is currently at 2.25 per cent, and an interest rate announcement is scheduled for Oct. 28.

• Email: ptran@postmedia.com