Prime Minister Mark Carney’s government unveiled a blueprint Tuesday to counter rising U.S. protectionism and bolster a sluggish economy through tax incentives to spur corporate investment, targeted federal spending and cuts to the public service.

Mr. Carney’s first budget, presented to the House of Commons by Finance Minister François-Philippe Champagne, lays out new spending of more than $140-billion over five years, but after factoring in $56-billion in savings from cuts to the public service and program spending, net new spending is $89.7-billion over five years. Mr. Champagne said the budget could spur $1-trillion of investment.

Tuesday’s federal budget will announce a $50-billion fund for local infrastructure, including housing, transportation and a specific stream for health infrastructure such as hospitals and emergency services, a senior government official told The Globe and Mail.

The source said the budget will also lay out a plan to retire aging military fleets as a way to save money on maintenance costs while the Canadian Forces wait for a wide range of new equipment that will be purchased through billions in increased defence spending.

Premier Doug Ford is calling on U.S. Ambassador Pete Hoekstra to apologize to Ontario’s representative in Washington after Mr. Hoekstra reportedly subjected the official to an expletive-filled tirade over the province’s anti-tariff TV ad.

Mr. Ford, speaking to reporters Wednesday, said Mr. Hoekstra owes David Paterson, a former General Motors executive, an apology.

U.S. President Donald Trump has ended trade talks with Canada over an Ontario government anti-tariff advertising campaign running in the United States, prompting Premier Doug Ford to pull the ad at the request of Prime Minister Mark Carney.

The abrupt break in negotiations follows mounting White House frustration with Ottawa, which so far hasn’t agreed to the sort of punitive trade deal that other U.S. trading partners have accepted.