Trump's trade war heightens Canadian election affordability concerns

The Canadian federal election campaign is heavily influenced by affordability issues, which have been a central concern for years. Experts note that the ongoing trade war with the U.S., driven by President Donald Trump, is adding to voters' worries. High inflation and increased interest rates have put pressure on Canadian households, making it harder for them to negotiate higher wages. In response, political parties have offered different solutions. For example, the Liberal government proposed a temporary tax break on essential items, while the Conservatives suggested a more permanent tax cut. The NDP focused on corporate greed. Recent polling indicates a shift in public concern. In early March, a Leger poll found that 28% of Canadians now list Trump and the trade war as their top issue, surpassing inflation's 21%. This is the first time since August 2022 that something other than affordability has topped the list of concerns. Sébastien Dallaire from Leger explained that while affordability remains critical, the economic uncertainty from the U.S. trade war adds to Canadians' anxieties. Initially, Canadian inflation was under control, allowing for a reduction in interest rates. However, economists warn that ongoing tariffs may lead to rising unemployment and further price increases in exposed goods. Randall Bartlett from Desjardins Group pointed out that while the economy was gaining momentum, a prolonged trade war could result in a recession later this year. Canadians currently support counter-tariffs against U.S. imports, but this may change as they feel the financial impact of such measures. During the election campaign, party leaders will need to address two key issues: how to manage relations with Trump and what plans they have to alleviate the financial strain on Canadians amid the trade war. Dallaire emphasized the need for leaders to deliver a dual message, focusing on both strategies to influence Trump and measures to support Canadians directly.