Retail figures point to fading momentum in consumption as Bank of Canada policymakers are expected to keep cutting borrowing costs early next year, albeit at a slower pace than the second half of this year. The central bank has reduced borrowing costs by 175 basis points since June, with a second straight half-percentage point cut last week.

An advance estimate indicates sales were flat in November after rising for the fourth straight month in October.

Canada's retail sales in October were marginally lower than expected as a jump in new car sales offset consumers' reduced purchases at supermarkets, grocery stores and wine shops, data showed on Friday.

The U.S. increasingly relies on Canadian crude oil to meet domestic demand and that relationship faces potential strain amid tariff threats.

The funding is designed to bolster security infrastructure, including the installation of advanced technology, and the hiring of additional personnel.

Canada has agreed to spend $1.3 billion to tighten security along its border with the United States. The announcement this week came after President-elect Donald Trump threatened 25 percent tariffs on Canadian goods coming into the U.