Franklin FTSE Canada ETF

FLCA

Market cap $761M

There are signs of economic weakness in Canada, Prime Minister Carney said, arguing this reflects policy decisions made since he came to power that have been aimed at rewiring the economy to deal with U.S. tariffs.

Canada's economy unexpectedly shrank for a second consecutive quarter with a dip in activity to start the year as exports faltered but imports rose and weakness in business and government investment balanced increased household spending.

Canadian Prime Minister Mark Carney has called a looming poll on whether Alberta should become independent "a dangerous bluff." Carney, who was head of the Bank of England when the U.K. voted to leave the EU, likened Alberta's separatist movement to Brexit.

Statistics Canada's industrial product price index increased 2% in April from the month before, representing its fourth consecutive rise.

The U.S. decision to suspend planned ​biannual defense talks with Canada follows deepening concern that Ottawa is failing to take steps to become a "credible" security partner, ‌including by hiking military spending and completing a review of an F-35 fighter jet acquisition, a Pentagon official said on Thursday.

Strong earnings and energy exposure have helped Canadian equities outperform despite mounting geopolitical and inflation pressures. The Strait is still closed, and so we thought maybe the worst of the oil price surge was behind us a month ago when we got the ceasefire.

The acceleration was due largely to another month of steeper prices for gasoline, though core measures of inflation remain contained.

Canada is allowing 49,000 Chinese-made electric vehicles to be imported for retail sales annually at a tariff rate of 6.1%. That's opening the market for auto dealers in the country to sell Chinese EVs.

Manufacturing shipments increased 3% from the month before to a seasonally adjusted C$73.57 billion, the highest level since the start of 2025.

Bank of Canada officials agreed on the need to change course quickly on rate policy depending on developments in the Middle East and trade tensions with the U.S.