Business
Prime Minister Mark Carney Says Canada’s Economy Is Expected to Grow and Deficit to Fall
Prime Minister Mark Carney of Canada presented a budget update on Tuesday showing that his government’s deficit would be less than projected last fall and that the country’s economy would most likely grow over the coming year despite several key industries being buffeted by President Trump’s tariffs.
The spring economic update, a mini budget of sorts, came exactly one year after Mr. Carney returned the Liberal Party to power in his first political campaign and a few weeks after special elections and defections to the Liberals by members of other parties gave him a majority and the voting control of Parliament he had been denied in that election.
But if Mr. Carney intends to use his newfound political control to change direction, there was no indication. Instead, the update underscored his broad push to reduce Canada’s economic dependence on the United States by expanding trade with other countries and cutting government spending in some areas to expand military spending and large infrastructure projects like pipelines and nuclear power reactors.
“The world has been more uncertain than ever, but despite that, the Canadian economy has been resilient,” François-Philippe Champagne, the finance minister, told reporters on Tuesday. “We’re definitely entering a new world order.”
Mr. Carney, the former central banker of Canada and England, was an investment executive until he moved into politics last year. At that time, the Conservatives seemed certain to win the election to come. Justin Trudeau, the Liberal leader at the time, had become unpopular after more than nine years in office, and his government was seen as profligate by many voters.
But Mr. Carney’s background in finance reversed the party’s fortunes when voters appeared to be searching for stability in the midst of Mr. Trump’s trade war on Canada and his calls to turn the country into the 51st U.S. state.
Since then, Mr. Carney has, publicly at least, appeared to largely operate as his own finance minister. He again upstaged Mr. Champagne this week by announcing the only major change to be found in the update. On Monday, Mr. Carney said that Canada would set up a sovereign wealth fund like those found in Norway and several oil-rich nations in the Middle East. While the fund of 26 billion Canadian dollars, about $19 billion, is considerably smaller than those other countries’ pools of money, Canadians will be able to invest their own money in Canada’s new projects.
The update clarified that the 26 billion Canadian dollars will be pulled out of the government’s general revenues over the next three years.
The only other significant measure outlined in the update was a plan to spend 2 billion Canadian dollars, or $1.5 billion, to train 80,000 to 100,000 people in skilled construction jobs, and an additional 3.4 billion Canadian dollars, or about $2.5 billion, to fund apprenticeships.
That program follows similar efforts by the federal government and provinces going back several years to deal with Canada’s chronic shortage of construction workers.
Mr. Champagne said that previous efforts had been fragmented but that the new program would be more comprehensive.
“How many people know all these programs and all these agencies?” he said.
The document also forecast that, despite declines in the jobs-heavy automotive, steel, aluminum and forestry industries brought on by American tariffs, the economy would grow by 2 percent this year. Last year, it reached 1.7 percent after falling by 0.6 percent in the final three months.
The government said that it now expected the deficit for the current fiscal year, which began this month, to be 67 billion Canadian dollars, 11 billion dollars less than it had anticipated in the November budget.
While the recent spike in oil prices is being felt by Canadian motorists, air travelers and many industries, it is benefiting Canada’s oil industry and increasing tax revenues as well as employment in that sector. Overall, the government now expects its revenues to be 9 billion Canadian dollars higher than forecast in part because fewer people are likely to lose their jobs.
In the months since November’s budget, it remains unclear exactly what jobs and programs will be lost to budget cuts. And the government has introduced a variety of new spending measures like the investment fund and a temporary removal of a federal tax on gasoline and diesel fuel to partly offset the recent price hikes.
Mr. Champagne repeatedly said that the deficit remained low relative to other industrialized nations and that the government was “fiscally prudent” and careful where it cut.
“By spending less, we can invest more in the things that really matter to Canadians,” he said.
Business
The FBI serves a search warrant at the Garden Grove chemical plant
Federal Bureau of Investigation officers served a search warrant Wednesday at the Garden Grove chemical plant, where a compromised tank containing toxic chemicals threatened to leak or explode, resulting in the evacuation of nearby residents in May.
“We are cooperating with authorities at our Garden Grove facility and will continue to do so,” a spokesperson of GKN Aerospace, which operates the facility, said in an email statement.
Laura Eimiller, an FBI spokesperson, said FBI agents are serving a search warrant as part of an ongoing investigation into the Garden Grove aerospace business.
GKN Aerospace is a division of Melrose Industries, a U.K.-based aerospace company that manufactures aircraft parts.
In May, at the manufacturing facility, which stores thousands of gallons of toxic chemicals in pressurized tanks used to produce materials such as plexiglass for fighter jet and commercial aircraft windows, one tank threatened to leak or explode.
Over 50,000 residents were temporarily evacuated as officials investigated the potential for an explosion for days. They found that a crack in the compromised tank released the pressure buildup inside the storage unit, which ruled out the possibility of an explosion, and allowed residents to return to their homes.
The compromised tank threatened to blow up, affecting adjacent tanks also containing the toxic chemical methyl methacrylate which could have caused a large-scale public safety emergency. Still, plans to remove the remaining MMA chemical tanks from the facility have been postponed, and no new date has been announced yet.
Residents who were impacted by the evacuation have already filed multiple class action lawsuits against the company, alleging negligence at the manufacturing facility and seeking compensation for loss of use of homes and diminished property value. Now, federal officials will investigate possible violations and factors that could have contributed to the incident.
According to the FBI warrant, the officers will seize items in violation of measures to prevent the accidental release of hazardous substances into the air.
The warrant allows FBI officers the discretion to search digital devices or seize and transport them as part of the investigation.
Business
Rivian begins deliveries of cheaper electric vehicles
Electric-vehicle maker Rivian began delivery of a cheaper SUV on Tuesday as it aims to take customers from Tesla and others.
The long-anticipated R2, which will eventually be available for less than $45,000, could help boost the market share of the Irvine company better known for vehicles priced around $77,000.
The first R2s to roll off the company’s production line in Normal, Ill., are the performance version, starting at $57,990. Rivian said the R2 Premium will arrive in late 2026 for around $54,000, followed by an R2 Standard version in 2027 priced at $44,990.
“Rivian is really trying to prove its worth,” said Ivan Drury, director of insights at Edmunds. “They’ve gone past that initial stage and are hoping to move on to mass market products.”
The R2 Performance is still an expensive vehicle for many Americans, but it’s a step down from Rivian’s nearly $77,000 R1S. It’s typical for an automaker to launch the most expensive version of a new vehicle first, experts said.
Whether the R2 will be the success Rivian is hoping for won’t become clear until late 2027, once the standard versions are widely available. Chief Executive RJ Scaringe said the company is aiming to compete with not just other EV makers, but also traditional auto companies such as Jeep and Subaru.
“More mainstream people are going to be in on the R2, especially for the lower-priced models,” auto analyst Brian Moody said. “You’re always going to have early adopters, but there’s a lot more customers to go around in the $45,000 to $55,000 range.”
According to Cox Automotive, the average transaction price for a new EV in the U.S. is $55,000, compared with $49,000 for a gas-powered vehicle. Used EV sales have been surging lately because of their value, with an average transaction price of around $36,000.
Though there’s significant hype surrounding the launch of R2, investors have been unimpressed. Rivian shares fell 7% on Tuesday.
There has been a broad cooling of the EV market. Major automakers including Honda and Ford have cut back their EV options as excitement for the vehicles has fallen under the Trump administration. A $7,500 EV tax credit for new vehicles expired in September.
Drury added that an announcement of a new product would generally generate more buzz than the first deliveries of a vehicle that’s already been in the public eye.
“This is simply them delivering on a promise, and the market itself is not what it was when they had first conjured up the vehicle,” Drury said.
Rivian lost $3.6 billion last year and hasn’t been profitable since its founding in 2009. Scaringe said the company will reach profitability on a per-unit production basis with the R2 this year, but estimated that the company won’t turn an overall profit until closer to 2030.
Karl Brauer, an auto industry expert at ISeeCars.com, said the premium and standard versions of the R2 probably will sell in much higher volumes than the performance version.
“It’s in theory an exciting moment, because they’re launching this new version, but it’s the expensive one,” Brauer said. “There’s no indication in my mind that there will be huge, high-volume sales.”
Business
Primm is a spooky shell of its former self. But the gambling oasis may have found a savior
A month away from its closure, onetime gambling oasis Primm, Nev., located along the state border with Southern California, has a new lease on life.
The Primm family, owners of the land that includes three casino resorts and other businesses along the 15 Freeway, announced Tuesday a partnership intended to save the struggling state-line strip and hundreds of jobs.
The deal allows Las Vegas-based Terrible’s, owned by the Herbst family and perhaps most famous for a string of gas stations and convenience stores, to operate the properties.
“What we saw with them is the same energy that we had in rebuilding Primm,” said Cory Clemetson, describing the new deal with Terrible’s in an interview with The Times. Clemetson is president of Primm South Real Estate Co. and a grandson of Primm founder Ernie Primm, who made a name for himself in Southern California in the 1930s and ’40s with his Gardena card rooms.
In the summer of 2025, signage blocks an entrance at Primm Mall, a once-popular site along with the trio of casinos at the California-Nevada state line.
(Bridget Bennett / For The Times)
“Primm has long been one of Nevada’s most recognizable destinations,” said Tim Herbst, president of Terrible’s, in a statement. “This partnership reflects our commitment to preserving that legacy while creating new opportunities for growth, investment, and tourism for decades to come.”
Terrible’s takes over for Affinity Gaming, owned by private equity company Z Capital Partners, in the full-circle world of southern Nevada gaming. In 2010, Herbst Gaming declared bankruptcy and saw Primm taken over by Z Capital Partners.
An email to representatives for Affinity Gaming was not immediately returned.
The process for the return of Terrible’s to Primm kick-started May 5, when Affinity confirmed the closure of Primm Valley Casino Resorts.
Affinity’s subsidiary, Primadonna Co. LLC, sent termination notices to more than 300 employees effective July 4.
The closure was devastating, Clemetson said.
“It felt like a gut punch,” he said. “I mean, you’ve got to be kidding me that they would announce something like that for the Fourth of July. Laying off in excess of 300 Nevadans who are mostly paycheck to paycheck with nowhere to go didn’t sit well with my family.”
Primm Valley was the last of three resorts built between 1977 and 1994 at the site that remained in full operation.
Buffalo Bill’s, the largest of the three resorts, closed 24-7 operations in July 2025, after Whiskey Pete’s, the original casino, shuttered in December 2024.
Affinity Gaming declined multiple requests from The Times to speak about Primm’s struggles.
In a letter presented at a Clark County Board of Commissioners meeting, Erin Barnett, Affinity’s vice president and general counsel, wrote in October 2024 that “traffic at the state line has proved to be heavily weighted towards weekend activity and is insufficient to support three full-time casino properties.”
Scott Butera, Affinity’s chief executive and president, offered a few comments about the closure at the May 21 Nevada Gaming Commission meeting.
“As a tenant with a difficult lease and an expensive property and increased competition every day in California … it just became a very difficult thing,” he said, “and we’ve been losing money for years there.”
Clemetson said that Affinity asked for help over the years, such as potential rent reductions, but that the Primm family was unaware of Affinity’s finances.
As for the future, Clemetson said Terrible’s was in the process of reacquiring a gaming license for Primm, which he hoped would happen in the next three weeks.
He also said it was the goal of the Herbst and Primm families to try to keep all workers who received a termination notice employed.
Clemetson said he was excited about Primm’s future under Terrible’s and chalked up its bankruptcy in 2010 to the Great Recession.
“They suffered a similar fate of many big brands like MGM and Caesar’s,” Clemetson said.
“They’re very well thought of in Nevada and they’re a very successful family who’s done well,” he added.
Speaking of Primm’s chances of regaining its former glory, Clemetson reached back into his own past as a young sports agent for players on the L.A. Galaxy soccer team.
“I can’t tell you how many people told me I was dumb to get involved representing soccer players because soccer would never make it here,” he said. “Now, Major League Soccer has a few franchises over a billion dollars.”
As for Tim Herbst and his family, “we believe Primm’s best days are still ahead.”
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