Tariffs

Trump’s Tariffs Shake Up Canadian Election: Liberals Gain Ground as Conservatives Struggle

Just months ago, the Canadian Conservative Party seemed destined for a humiliating victory in the coming general election. Yet, the political environment has entirely changed in the aftermath of multiple direct U.S. President Donald Trump threats against Canada, such as hefty tariffs and a now-notorious comment about making Canada the “51st state.” These tensions have surprisingly reinvigorated Prime Minister Justin Trudeau’s dwindling Liberal Party and narrowed the Conservatives’ previously comfortable margin. Although Trudeau had made an earlier announcement this year of resignation from the Liberals’ leadership, his party experienced a 10-point rise in popularity since January as a new leader was approaching.

The Liberal leadership contest will determine who faces Poilievre during the latest election, which could happen any week now. With a temperamental inclination towards aggressive economic policies—namely Trump imposing a 25% tariff on Canadian imports—this particular trader has seen an escalation in fears of an impending economy, accompanied by pundits boldly grinding of job losses and the looming spectre of recession on the horizon. Consequently, in a clear show of strength, Trudeau describes the imposition of tariffs as baseless without justification while letting Trump look to destabilize the Canadian economy to profit politically.

Now, with national security and economic survival truly in the public consciousness, the upcoming elections are less about matters like inflation, dwelling houses, and health care—the very issues that had previously been in Poilievre’s favour—and rather that Canadians are just rallying around this leader who can stand up to Donald Trump. Above all, the Liberal’s Karl Carney is the front-runner for the Liberal leadership campaign and the once-the central banker, as well as marketing himself as the best-positioned car airbags or at least react automatically to handle Trump’s trying-to-trade threats.

Surveys indicate that a greater number of Canadians consider him better equipped than Poilievre to manage economic crises. The quick flip of Sensationalism to the second movement of their campaign messages is the first-ever changing reminder for them of the sensibilities of the people out there: The once-hidden contempt has vanished from the slogan “Canada is Broken.” The New Blades of Canada have also drawn sharp barbs against Carney for his guiding hand in the relocation of the headquarters of one giant Canadian investment firm to New York.

Carney denies having had anything to do with the move in its entirety, but the critics demand full transparency regarding his role and connection. As election day approaches, influence of Trump on Canadian politics is still glaring. Whether people will decide to stick with Liberals with new leadership or opt for a Conservative government, one thing is for sure: the U.S. president is now a pivotal figure in the constellation of Canadian politics.

Edited By Saumya Sharan

Also Read: https://theglobalic.com/2025/03/09/world-economy-falls-amidst-tariff-war/