This week, Canada’s political landscape shifted significantly as newly sworn-in Prime Minister Mark Carney and his lean federal Cabinet set the tone for navigating escalating U.S. trade tensions and steering the country toward economic resilience.
Mark Carney’s 23-member Cabinet, down from 36 under Trudeau, was immediately tasked with focusing on economic growth, national security, and trade. Anita Anand, now Minister of Innovation, Science, and Industry, will play a central role in securing the economy amid escalating U.S. trade pressures, while Kamal Khera, a nurse by profession, takes over as Minister of Health with a mandate to prioritize patient care. Anand replaced François-Philippe Champagne, who is now the Minister of Finance.
Chrystia Freeland, the former Deputy Prime Minister and Minister of Finance, now serves as Transport and Internal Trade Minister, while Dominic LeBlanc, former Minister of Finance and Minister of Intergovernmental Affairs, sits as International Trade and Intergovernmental Affairs Minister and President of the King’s Privy Council.
Industry and community leaders welcomed Carney’s leadership but wasted no time outlining expectations. BIOTECanada welcomed PM Carney and the new federal cabinet, reaffirming the company’s commitment to robust regulatory frameworks and investment policies affecting the life sciences industry. The company also highlighted recent investments in Canada’s life sciences sector amounting to $25 billion, as well as the role of biotechnological innovation in economic growth and international competitiveness.
Similarly, the Council of Canadian Innovators congratulated PM Carney, Minister of Innovation, Science and Industry Anita Anand, and Finance Minister François-Philippe Champagne. Addressing the U.S.-Canada trade war, the council underscored the importance of sovereignty, productivity, and economic resilience.
Ontario’s Big City Mayors expressed optimism about engaging with the new federal ministers on key issues, such as tariffs, housing, infrastructure, mental health, and addiction support. The organization looks forward to a strong relationship with Nate Erskine-Smith, Minister of Housing, Infrastructure and Communities.
For its part, the Toronto Region Board of Trade urged the Carney administration to implement a “comprehensive economic response” amid the trade war, promote the protection of Canadian industries, reduce reliance on the U.S. market, and pursue competitive regulatory frameworks and tax policies.
Indigenous leaders, including Assembly of First Nations National Chief Cindy Woodhouse Nepinak and Manitoba Keewatinowi Okimakanak, urged the new government to prioritize longstanding issues like clean drinking water, healthcare access, and housing, criticizing the prior government’s neglect of Indigenous communities.
At the provincial level, Ontario Premier Doug Ford was sworn in for his third term and introduced a reshuffled 37-member Cabinet focused squarely on making Ontario’s economy more competitive and resilient against U.S. trade pressures. Ford retained key ministers including Sylvia Jones as Deputy Premier and Minister of Health and Peter Bethlenfalvy in Finance, Prabmeet Sarkaria in Transporation, Kinga Surma in Infrastructure, and Vic Fedeli in Economic Development. Zee Hamid, as Associate Minister of Auto Theft and Bail Reform, is the lone new cabinet member.
Former Housing Minister Steve Clark, who stepped down following the Greenbelt land controversy, continues to serve as government house leader, though the role is not part of the cabinet. Clark was replaced by Paul Calandra, before his recent appointment as Minister of Education.
The new Cabinet pledged to double down on its promises during the election and to make the provincial economy more competitive. The plan includes cutting red tape and accelerating approvals on businesses, among others. In response to Ford’s new cabinet, the Ontario Chamber of Commerce urged the government to safeguard the province’s economy amid geopolitical tensions and trade disruptions. The organization also advocates for removing trade barriers, supporting trade-exposed sectors, and making strategic investments to enhance competitiveness.
The Council of Canadian Innovators then emphasized the need for Ontario to shift towards value-added strategies and prioritize the development of high-value products in sectors like healthcare and cybersecurity.
In healthcare policy, the federal government and Yukon government signed a $9.5 million pharmacare agreement, designed to provide universal access to a range of contraceptive and diabetes medications for Yukon residents at little to no cost. The agreement includes an investment of up to $9.5 million over four years, with the expectation that residents will begin receiving coverage no later than January 2026.
Yukon Minister of Health and Social Services Tracy-Anne McPhee stated that the program aims to support the reproductive freedom of over 12,000 Yukoners and improve access to essential diabetes medications for over 3,000 residents. Yukon joins Manitoba, British Columbia, and Prince Edward Island in signing pharmacare agreements under the Pharmacare Act.
With all of these happening, Canada’s healthcare system faces both innovation-driven costs and persistent access challenges. The 2025 Alberta Blue Cross Drug Pipeline Report revealed a 19% surge in pharmaceutical innovation, with over 12,000 new drugs in development, including treatments for menopause, diabetes, obesity, ADHD, and Alzheimer’s. Yet, Alberta Blue Cross warned of rising drug costs, recommending measures like special authorization and step therapy to support plan sustainability.
In addition, Statistics Canada reported on the findings of a study published in Health Reports highlighting inequalities in access to primary healthcare in Canada, focusing on avoidable hospitalizations, a key indicator of healthcare access. The study revealed that males, particularly from the Black population, had higher rates of avoidable hospitalizations compared to females and other racial groups. From 2016 to 2022, Black males exhibited the highest risk, especially during the COVID-19 pandemic.
This week’s developments signal a country balancing immediate economic pressures with the need for long-term structural reforms.
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