Carney and Poilievre Promise Tax Cuts as Federal Election Campaign Kicks Off

Canada’s federal election campaign is officially underway, with Liberal Leader Mark Carney and Conservative Leader Pierre Poilievre both making bold tax-cut promises aimed at easing the financial strain on middle-class Canadians. With U.S. President Donald Trump’s escalating trade war casting a shadow over the economy, the two leaders are positioning their parties as the best choice to protect jobs and boost household incomes.

Liberal Leader Mark Carney wasted no time unveiling his “middle-class tax cut” after meeting with Governor General Mary Simon to formally trigger the election. Speaking outside Rideau Hall in Ottawa, Carney promised to reduce the lowest income tax bracket by one percentage point, a move he says will benefit over 22 million Canadians.

“The best way we can deal with this crisis is to build our strength here at home and help people who will be hit hardest by these tariffs,” Carney told reporters.

According to the Liberal Party, the tax cut would save a dual-income family up to $825 annually, though Carney did not specify how much the measure would cost the federal government.

Alongside his tax pledge, Carney vowed to take a firm stance against Trump’s trade policies, positioning himself as a steady hand capable of shielding Canada’s economy from external pressures.

In a direct challenge to Carney’s proposal, Conservative Leader Pierre Poilievre announced a deeper tax cut during a campaign stop at the Kruger plant in Brampton, Ontario. Poilievre promised to slash the lowest income tax bracket from 15% to 12.75%, which he claims will save a dual-income family up to $1,800 annually—more than double the Liberal savings.

“This is a tax cut for the waitress, for the welder, for the barber,” Poilievre declared. “It will put more money into the pockets of everyday Canadians.”

To offset the revenue loss, Poilievre pledged to trim federal government bureaucracy, reduce spending on consultants, and scale back foreign aid. He also proposed a “dollar-for-dollar” law, which would require ministers to find $1 in savings for every new dollar spent, aiming to reduce government waste and boost efficiency.

The Conservatives estimate their tax plan would cost $14 billion annually once fully implemented by the 2027-2028 fiscal year.

Both Carney and Poilievre framed their economic plans as necessary defenses against the mounting impact of Trump’s protectionist trade policies. Less than two weeks ago, the U.S. president imposed 25% tariffs on Canadian steel and aluminum, prompting Canada to retaliate with $29.8 billion in tariffs on American goods. Additional tariffs are expected on April 2.

Poilievre accused Carney of failing to safeguard Canadian industry, promising to repeal the carbon tax entirely if elected—a move that goes further than Carney, who only scaled back the consumer carbon tax.

“Mr. Carney’s carbon tax and Donald Trump’s tariffs will destroy Canadian industry, pushing jobs south — but I won’t let that happen,” Poilievre said during a speech in Gatineau, Quebec.

NDP Leader Jagmeet Singh launched his campaign in Ottawa by promising to fight for working Canadians. Singh condemned Trump’s “illegal trade war” and criticized both the Liberals and Conservatives, claiming that “only New Democrats can be trusted to look out for you.”

“We’re not here to patch up a broken system for the next storm,” Singh said. “We’re here to build it—stronger, safer, and fair for everyone.”

With tax cuts dominating the early days of the campaign, Canadians will have to weigh the Liberals’ modest relief plan against the Conservatives’ more substantial overhaul. As Trump’s tariffs continue to disrupt the economy, the leaders’ strategies for defending Canadian jobs and boosting affordability will be closely scrutinized in the weeks ahead.