Trump's trade war, annexation threats upends Canada's election
The Liberal Party leader's and the Canada's new Prime Minister, Mark Carney, looked headed for a crushing defeat in Monday's (April 28, 2025) election until the American President started attacking Canada's economy and even threatening its sovereignty, including suggesting it should become the 51st state.
Mr. Trump's dumping on Canada has infuriated its people and stoked a surge in Canadian nationalism that has helped the Liberals flip the election narrative.
'Trump has immersed himself into our lives and has defined the ballot question,' former Quebec Premier Jean Charest said.
'What Trump has done is shed light on who we are,' he said.
Even separatists in French-speaking Quebec 'are very much aligned with other Canadians in defending the country and responding very firmly to the fact that we're not going to be the 51st state,' Mr. Charest said.
The Opposition Conservative Party's leader, Pierre Poilievre, hoped to make the election a referendum on former Prime Minister Justin Trudeau, whose popularity declined toward the end of his decade in power as food and housing prices rose and immigration surged.
But Mr. Trump attacked, Mr. Trudeau resigned and Mr. Carney, a two-time central banker, became the Liberal Party's leader and the Country's Prime Minister.
'We were looking at a scenario where the Conservatives were going to rake in a huge majority,' said Mr. Charest, a Conservative. 'Here we are months later in another world.' Mr. Trump's trade war and attacks have led Canadians to cancel trips to the U.S. and refuse to buy American goods. And it might have contributed to record early voting, with 7.3 million Canadians casting ballots before election day.
Mr. Carney said the 80-year period when the U.S. embraced the mantle of global economic leadership and forged alliances rooted in trust and respect is over.
'The key question in this election is who is the best to respond to that. Who will stand up to President Trump?' he said.
Mr. Poilievre, a career politician and firebrand populist, has campaigned with Trump-like bravado, even taking a page from the 'America First' President by adopting the slogan 'Canada First'. But his similarities in style to Mr. Trump might cost him.
In a mid-January poll by Nanos, Liberals trailed the Conservative Party by 47% to 20%. In the latest Nanos poll that ended April 22, the Liberals led by 5% points. The January poll had a margin of error 3.1 points while the latest poll had a 2.7-point margin.
Until a few months ago, Mr. Poilievre was seen as a shoo-in to become the next Prime Minister and shepherd the Conservatives back into power for the first time in a decade.
Ian Brodie, a former chief of staff to Conservative Prime Minister Stephen Harper, said it's frustrating that this year's Conservative campaign plan had to change so drastically.
'At least 40% of the electorate is just petrified about the continued existence of the country,' Mr. Brodie said. "... In a sense, it is a once in a lifetime lineup of forces that works against everything Pierre been doing since he got himself into politics.'
Mr. Brodie said a Conservative win will be tough and that the party's situation might not improve anytime soon, noting support for a small progressive party, the New Democrats, has been shrinking for years, making it a two-party struggle.
'If you are into two-party competition for the foreseeable future, then you have to be much closer to the centre of the political spectrum than the Conservatives have been,' Mr. Brodie said, noting that the Party might need a new leader.
Whoever the next Prime Minister is will face challenges. Both Mr. Carney and Mr. Poilievre said that if elected, they would accelerate renegotiations of the countries' free trade deal in an effort to end the uncertainty hurting both of their economies.
Mr. Carney, in particular, has notable experience navigating economic crises, having done so when he ran Canada's central bank and when he later became the first non-UK citizen to run the Bank of England since its founding in 1694.
'The problems are really inconceivable, worse than any Canadian Prime Minister has had to face, I think ever,' said Robert Bothwell, a University of Toronto professor of Canadian history and international relations.
'Not only is Carney the luckiest guy alive and came in at absolutely the right moment, but once he actually starts having to administer the country, the Trump problem, the American problem, is just inconceivable,' he said. 'It's like being handed a sack full of rabid beavers.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
36 minutes ago
- Time of India
After a lag, US consumers begin to feel tariff pinch
. Many businesses chose to absorb the additional tax during the early days of President Donald Trump's trade war. But evidence is emerging that they are running out of options to keep prices stable in the face of deteriorating profit margins, suggesting that the tariffs could have a more pronounced effect on prices in the months ahead. US govt data, including from the commerce department this past week, shows that prices rose in June on items heavily exposed to tariffs, such as home furnishings, toys and appliances. And in recent days - before Trump announced tariffs for much of the world Thursday night - Adidas, Procter & Gamble, Stanley Black & Decker and other large corporations told investors that they either had increased prices or planned to do so soon to offset the tariff costs. Companies like Walmart and toymakers Hasbro and Mattel had already warned that tariffs would lead to higher prices. "We have no interest in running a lower-margin business, particularly due to tariffs," Richard Westenberger, the chief financial officer of Carter's, a children's apparel maker, said on a call with analysts July 25. Sarah House, an economist at Wells Fargo, said the next three to six months would be "crunchtime," as more tariff rates solidified. Trump and his advisers have maintained that foreign countries will eat the tariffs. But so far, while there are some signs that the exporters are swallowing the additional cost, most of it is being passed on to American importers, according to department of labour data on import prices.


Economic Times
42 minutes ago
- Economic Times
Taiwan to face economic risk as US mulls semiconductor tariffs under Trump proposal: Think tank
ANI Taiwan is bracing for a significant economic challenge as US President Donald Trump threatens to impose a tariff on semiconductors, according to the Chung-Hua Institution for Economic Research (CIER), reported by Focus industry is central to the island's exports and overall economy. Information and communication technology (ICT) products account for over 70% of Taipei's exports to the United States, according to the CIER. CIER President Lien Hsien-ming told CNA on Friday that Taiwan's dependence on semiconductors is notably higher than that of other countries. "He said compared with other countries, the semiconductor industry carries a heavier weighting for Taiwan in terms of industrial and economic development. In 2024, Taiwan recorded a trade surplus of $73.9 billion with the United States, up from $47.8 billion in 2023, largely driven by strong American demand for AI servers and semiconductors during the ongoing artificial intelligence boom. "I think Trump really cares about a trade deficit resulting from purchases of high tech gadgets such as semiconductors," Lien said, referring to a US investigation launched in April under Section 232 of the Trade Expansion Act of 1962, targeting ICT products--especially semiconductors--as part of a possible new tariff regime."As ICT products make up more than 70 percent of Taiwan's exports to the US, a tariff on semiconductors could have a bigger impact on Taiwan's economy than the 20 percent blanket tariff the White House announced Thursday," Lien newly announced blanket tariff rate was lowered from 32%, previously suggested by Trump on April response, President Lai Ching-te said the 20% tariff was provisional and that Taiwan would continue negotiations with the US to secure a lower rate. Taiwan's negotiating team will also address the semiconductor issue directly with their American counterparts. Lai's statements reflect a growing focus within the Taiwanese government on the potential threat posed by a targeted semiconductor tariff."Lai's remarks show the government is focused on a possible tariff on semiconductors as such a levy could threaten Taiwan's economy," Lien said, according to the Focus Vice President Chen Shin-horng echoed Lien's concerns, saying that based on current US negotiation tactics, targeted tariffs on specific industries like semiconductors are likely to be steeper than general blanket added that Trump appears to be leveraging Section 232 of the Trade Expansion Act as a strategic tool to push for major foreign investments in the the US may be aware that foreign chipmakers are unlikely to launch new production facilities in the short term, tariffs could still be phased in gradually.A tariff under the clause could be set at a lower level at the beginning and gradually increased over the next two to three years, Chen Semiconductor Manufacturing (TSMC), currently investing $65 billion in Arizona with an additional $100 billion pledged, has already warned the US government that proposed tariffs on Taiwanese semiconductors could significantly undermine demand and disrupt its investment strategy."New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona's significant investment plan in Phoenix," the chipmaker wrote in a letter to the US Department of Commerce in May, according to the Focus Taiwan. US Commerce Secretary Howard Lutnick said in late July that results of the ongoing investigation will be announced within two weeks, ahead of any final decision on semiconductor tariffs. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Jane St: How an options trader smelt a rat when others raised a toast TCS job cuts may not stop at 12,000; its bench policy threatens more Unlisted dreams, listed disappointments? NSDL's IPO leaves pre-IPO investors riled. Regulators promote exchanges; can they stifle one? Watch IEX Did Meesho's Valmo really deliver a knockout punch to e-commerce logistics? Sebi's settlement with market intermediaries: More mystery than transparency? Trump tantrum: Check the Indian pulse of your portfolio. 71 stocks from 5 sectors for whom Trump may not even be noise F&O Radar| Deploy Short Strangle in Nifty to gain from Theta decay Stock Radar: PI Industries stock showing signs of momentum; takes support above 50-DEMA – time to buy?


Time of India
an hour ago
- Time of India
India inaugurateseight new consular application centres across America
. India has opened eight new consular centres across the US, significantly expanding the delivery footprint for visa, passport and other services and streamlining them for the Indian diaspora in the country. India's Ambassador to the US Vinay Kwatra on Friday virtually inaugurated the new Indian Consular Application Centres (ICAC) in Boston, Columbus, Dallas, Detroit, Edison, Orlando, Raleigh and San Jose. An additional ICAC will open soon in Los Angeles. All consular services, including passport, visa, OCI, surrender certificate, life certificate, birth/marriage certificate, police clearance, attestations, and more, will be provided exclusively through VFS Global Centres. The expansion brings the total number of ICACs across the US to 17, making consular services more accessible to Indian and American citizens in the country. In addition to the new centres, the Embassy of India is enhancing operational accessibility -- all 17 ICACs will operate six days a week, including Saturdays, offering flexibility for applicants.