Meanwhile, more promises from party leaders as Canada’s election campaign continues
With an election campaign underway, Mark Carney was never going to describe a phone call with Donald Trump in anything other than a positive note.
But while the prime minister said they had a “very constructive conversation about the relationship between our two countries” – and the president called it “extremely productive” – the tariffs that will weaken trade, at least in the near term – will still come into effect this Wednesday, April 2.
They may be short-lived as the two leaders both said they will talk after the election. If Carney is successful later this month he and Trump will “begin comprehensive negotiations about a new economic and security relationship immediately” according to a statement. Trump said he and Carney agree “on many things.”
To address “immediate concerns” there will be continued dialogue between Canada’s trade minister Dominic LeBlanc and his US counterpart Howard Lutnick, but for now the tariffs, including retaliatory measures from the Canadian side, are coming this week.
Election promises
While a trade war rages across borders, the domestic battle of an election campaign enters its second week.
Conservative leader Pierre Poilievre announced the Canada First Reinvestment Tax Cut, which would, if he becomes prime minster, give a significant tax break to companies that sell an asset and reinvest the proceeds in Canada. There would be no capital gains tax to pay on these transactions, while companies that invest in active Canadian businesses would be able to defer capital gains tax until investors cash out or move the money out of Canada.
“The current capital gains tax locks-up investment in old assets, because selling them would force a big bill,” said Poilievre in a statement. “So, they do not sell and reinvest in homebuilding, small businesses, technology, manufacturing and more. Allowing reinvestments without tax will unlock billions to immediately begin building, hiring, investing and growing.”
In a statement in his capacity as Liberal leader, Mark Carney said that if he is re-elected there would be a $5 billion Trade Diversification Corridor Fund to help Canada diversify its trade options.
“The road ahead in this trade war will be long and difficult, but I have every confidence in our people,” he said. “We are stronger when we are together. We will build a more productive, more competitive, more resilient economy. We are ready to build the fastest growing economy in the G7. We are Canada strong.”
The NDP leader, Jagmeet Singh, announced Sunday that a government run by his party would help first-time homebuyers by using the CMHC to offer low-interest, publicly backed mortgages to address the housing affordability issues that bar so many Canadians from owing their own home.
“Right now, the system is designed to mostly help the very people who made the crisis worse,” Singh added. “We’re going to change that. People are working hard and doing everything right and still can’t afford a home—that’s not fair and we’re going to make it right.”
The federal election is on April 28, 2025.
