How do Canadian political parties plan to address US tariffs?

With the federal election in Canada fast approaching, the three political parties in the country have detailed how they plan to support workers amid the issue of the US tariffs.

Prime Minister Mark Carney announced the Liberal Party’s plan to invest in trade-enabling infrastructure to diversify Canadian trade away from the United States and create new jobs.

“The President of the United States is trying to fundamentally restructure his economy by imposing harmful and unjust tariffs. Canada’s response is to fight, protect, and build,” says Carney, leader of the Liberal Party of Canada.

“In this time of crisis, my new Liberal government will fight their tariffs, protect our workers and industries, and above all, we will use this opportunity to build a new Canadian economy. Together, we will build Canada strong.”

The Liberal Party plans to inject $5 billion into a new Trade Diversification Corridor Fund.

This fund will build the infrastructure necessary to help diversify Canada’s trade partners, create good jobs, and drive economic growth, according to the party. It will accelerate nation-building projects at ports, railways, inland terminals, airports, and highways, said the party.

The Liberals also plan to “authorize Canadian ports to cooperate instead of compete, in order to maximize efficiencies by leveraging comparative advantages”, and to strengthen the security of ports to stop the flow of drugs such as fentanyl and its precursors, as well as illegal guns and stolen autos.

Carney has also announced a middle-class tax cut meant to save two-income families up to $825 a year, by reducing the marginal tax rate on the lowest tax bracket by one percentage point. More than 22 million Canadians will benefit directly from this tax cut.

Carney previously announced his plan to create a $2-billion Strategic Response Fund that will boost the auto sector’s competitiveness and protect manufacturing jobs.

“The road ahead in this trade war will be long and difficult, but I have every confidence in our people,” said Carney. “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.”

Conservative Party of Canada

Meanwhile, Conservative Leader Pierre Poilievre announced his plan for a, which will exempt any person or business selling an asset from paying capital gains tax if they reinvest the proceeds in Canada.

“The current capital gains tax locks-up investment in old assets, because selling them would force a big bill,” said Poilievre. “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.”

The gains would still be taxed if investors later cash out or move the money outside of Canada. The tax cut would apply to capital gains reinvested between July 1, 2025, and Dec. 31, 2026.

Poilievre will also support a plan to double Newfoundland and Labrador’s oil and gas production and approve the LNG Newfoundland and Labrador project.

“I also will grant rapid permits for LNG Newfoundland and Labrador which will pipe gas from the Jeanne d’Arc oil field to a floating liquefaction facility which will then be shipped off to Europe to break European dependency on Putin and turn dollars for dictators into paycheques for our people,” he said.

Doubling oil and gas production in Newfoundland and Labrador would potentially generate another billion dollars in revenue for Newfoundland’s economy, and create thousands of new jobs, say the Conservatives.

Canada’s New Democratic Party

Meanwhile, New Democratic Party Leader Jagmeet Singh announced the party’s plans to protection Canadian auto jobs:

He pledged that every dollar collected from Canada’s counter tariffs must go directly to support workers and communities hit hardest.

Amid a tariffs war, the NDP would also boost EI so workers can cover their bills and extend coverage to ensure families are protected for the long haul.                                             

The NDP would also mandate that federal departments and agencies—including Canada Post and the RCMP—purchase Canadian-made vehicles.

“To support good jobs here at home, U.S. companies that want to sell vehicles in Canada would be required to use Canadian-made parts or assemble some of the vehicle in Canada.”

Singh also committed to exempting Canadian-made cars and trucks from the GST to support domestic manufacturing and encourage Canadians to buy Canadian.

“Canadian auto workers have always delivered for this country,” said Singh. “Now it’s time their government delivers for them. We’re not going to let Trump and his billionaire-backers decide the future of Canadian jobs. We’ll fight back—and we’ll fight to win.”

“This is how we fight the climate crisis and protect Canadians from the effect of Trump’s trade war at the same time,” Singh said. “Lower bills. Good jobs. Cleaner air and water. That’s what Canadians deserve—and that’s what we’ll deliver.”

Half of employers expect to reduce their workforce headcount within the year in the face of the US tariffs, according to a previous KPMG report. 

Canadian Labour Congress calls for action

Despite the promises, no party has committed to work with banks and financial institutions "to ensure laid off workers and out of work self-employed don’t default on their mortgages, credit cards and car loans by requiring banks, mortgage companies, and loan providers to ease payment terms and rule out foreclosures," said Bea Bruske, president of the Canadian Labour Congress, in a report from The Canadian Press (CP).

While the Liberals have taken "some steps" on worker protection, their EI plan "still leaves too many workers behind," said Bruske.

She also said that the Liberals' move to reverse a "modest" capital gains tax increase was a step backward, adding that what Canada needs is "a fair tax system and to invest in public services."

"Their auto sector promises are welcome, but workers need immediate action," Bruske said, according to the CP report posted in Yahoo! News.

Canadian small businesses are facing unprecedented pessimism as tensions escalate in the U.S.–Canada trade dispute, according to the Canadian Federation of Independent Business (CFIB).

The Canadian federal election is set for April 28, 2025.