EYE ON POLITICS: American issues overshadowing Canadian election
by Kerry Turner
The federal election, which will see Canadians at the polls on April 28, has kicked off with full force as candidates across the political spectrum hit the campaign trail to canvas voters at a critical juncture in Canadian democracy. Signs endorsing candidates have shown up on lawns and businesses within days of the election being called, with party leaders campaigning in key voter ridings across the country.
Liberal and Conservative party leaders have continued the election campaign tradition of pointing fingers at each other in a bid to sow uncertainty amongst voters. Prime Minister Mark Carney has come under fire for his previous professional engagements with Brookfield Asset Management, where he co-chaired two investment funds worth over $25 billion – funds that were responsible for the transition to a net-zero carbon economy. The funds were held in an account in Bermuda where holders would benefit from specific tax advantages. Carney countered that the “The important thing... is that the flow through of the funds go to Canadian entities who then pay the taxes appropriately”. Progressive Conservative Party (PCP) Leader, Pierre Poilievre slammed Carney over a lack of transparency and urged the Prime Minister to come clean to Canadians over his personal financial assets.
Poilievre faces his own criticism, with Carney and NDP Leader Jasmeet Singh continuing to question Poilievre over his lack of an appropriate security clearance – a mandatory component to the Prime Minister’s office, though not required for the Leader of the Opposition. Carney called the move “irresponsible”, particularly as rumours of election interference from India within Poilievre’s own party are recirculating. Obtaining the security clearance required would allow Poilievre access to classified intelligence related to foreign interference. However, Poilievre states this is the very reason he doesn't want it – he refused to commit to the “oath of secrecy” that would accompany being cleared.
The election promises made along the campaign trail will come to a head on April 16 and 17, when party leaders will participate in a debate in English and French, respectively. Among Canadians, key issues such as the housing crisis, the economy and inflation are expected to be major points of discussion. However, polls show one of the biggest concerns amongst voters remains the threat of American tariffs and the ongoing trade war with our neighbour to the south.
Stepping away from the campaign trail, Carney has continued his efforts to recommit Canada to its international trading partners outside of the US. He met with the President of Mexico to build up trade ties and fortify a plan for the continuation of US tariffs. The meeting emphasized “the importance of safeguarding North American competitiveness while respecting the sovereignty of each nation”. The countries vowed to continue working together, specifically in regard to protecting each country’s mutual interests in their respective automotive industries. The partnership between the two nations will be imperative moving forward as US relations with Canada continue to deteriorate.
Carney stated during a cabinet meeting in Ottawa at the end of March that Canada’s previous relationship with the US, which was “based on deepening integration of our economies and tight security and military cooperation, is over”. Carney spoke with President Donald Trump on the phone in regard to the ongoing trade war and has since remained tight-lipped about the details surrounding their conversation or any potential future meetings between the two nations. Carney did note that Trump “respected Canada’s sovereignty during the call”.
Despite a call described as productive, Carney has vowed to impose retaliatory tariffs with "maximum impact" on the US, should it be required. Meanwhile, Trump seemed to change his tune in regard to his feelings for Canada, declaring, "I've always loved Canada ...We had a very good conversation. The prime minister – they've got an election going on, so we're going to meet after the election."
April 2 marked Trump’s long awaited and self-dubbed “Liberation Day” for the US president who, up until the 11th hour, had been largely quiet on the details surrounding a new slew of tariffs – this time, meant for any country the US president deemed had treated the US unfairly, justified or not. The announcement came from the Rose Garden at the White House just after 4pm and left the world’s leaders and economic experts reeling with more questions than answers as multiple countries now faced unfair and unjust tariffs on their products imported into the US.
The US stock market also swiftly reacted to the uncertainty, seeing its worst day since 2020. Trump has long sought validation for his action in the reflection of the stock market. As it stands, Canada currently faces a blanket 25% tariff on all imported goods not covered by CUSMA (Canada United States Mexico Agreement on trade, negotiated in 2016 and due for review in 2026). Automotive duties of 25% were also announced and took effect April 3. Not to be forgotten are taxes on steel and aluminum, which went into effect at the end of March. Future tariffs are anticipated to be industry-specific and coming down the pipe, targeting industries such as lumber and pharmaceuticals, according to sources.
Following Trump’s announcement, Carney met with Canada’s premiers and responded with a matching 25% tariff on all CUSMA exempt automobiles, stating that “"Although (US) policy will hurt American families, until that pain becomes impossible to ignore, I do not believe they will change direction. So the road to that point may indeed be long and it will be hard on Canadians, just as it will be on other partners of the United States." Conservative leader Poilievre also told the media that, "No, I don't consider the Americans to be a reliable trade partner right now... their president has chosen to betray America's best friend and closest ally. I'm saddened to say that because I love the American people, but there's no denying that there is a president right now who consistently betrays the Canadian people and shows that he has been unreliable to deal with."
As the Canadian election campaigns roll on, there will no doubt that the consideration among voters will be who is in the best position to take on Donald Trump – including a trade war that has now gone global. Voters will also have to contend with the outstanding issues that continue to plague our country – particularly high inflation and a growing lack of affordability. While Carney continues to lead in the polls, there is no doubt that this is an election that puts Canadians at a crucial juncture – both at home and around the world.