Leaders pitch savings bonds, GST-free Canadian cars to bolster tariff-struck economy

Prime Minister Mark Carney arrives on Parliament Hill in Ottawa, following the tariff announcement from U.S. President Donald Trump, on Wednesday, April 2, 2025. THE CANADIAN PRESS/Justin Tang

The New Democrats and Conservatives both pitched ideas on the federal election trail Thursday to make Canada and its workers more resilient in the face of tariffs imposed by U.S. President Donald Trump.

NDP Leader Jagmeet Singh proposed tax-free savings bonds, while Pierre Poilievre said a Conservative government would remove the federal sales tax from Canadian-made vehicles.

Liberal Leader Mark Carney, in his role as prime minister, met virtually Thursday with Canada’s premiers to discuss the U.S. tariffs as Canadian automakers started to feel the effects.

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Speaking after the meeting, Carney announced Canada will match Trump’s 25 per cent auto tariffs with a levy on vehicles imported from the United States.

He said every dollar raised through the counter-tariffs would go directly to Canadian autoworkers and affected companies. That is on top of the $2 billion fund he promised on the campaign trail last week to help the auto sector maintain competitiveness, protect manufacturing jobs, train workers and make a stronger Canadian auto supply chain.

With less than a month to go before Canadians head to the polls, and Canada’s response to Trump topping the issues concerning voters, party leaders are putting forward policies to help the country weather the U.S. tariff storm and emerge stronger.

The Canada Victory Bonds proposed by the NDP would be available in 5-year and 10-year terms and pay a compounding interest rate of 3.5 per cent, the party said in a media statement.

Singh told a campaign event in Ottawa that Canadians are looking for ways to support their country and “do their part.”

He compared the bonds to ones sold during wartime to help fund Canada’s military efforts.

“This is an opportunity for Canadians to invest in our country,” Singh said at the National Arts Centre in downtown Ottawa with the National War Memorial behind him.

Interest earned on the bonds would be tax-free if they are held to maturity, meaning a $100 bond would grow to $118.77 in five years and $141.06 in 10 years.

“We’re going to need to raise money to be able to build the roads, the bridges, the infrastructure we need,” Singh said. “Instead of relying solely on banks and paying debt and interest to those banks, let’s pay interest to Canadians instead.”

Campaigning in Kingston, Ont., Poilievre promised to remove the federal sales tax from Canadian-made vehicles in response to Trump’s tariffs.

Waiving the GST on a qualifying $50,000 automobile would save the buyer $2,500, he said.

The New Democrats were quick to point out Thursday that they proposed removing the GST from Canadian-made vehicles last week as part of a plan to protect auto industry jobs.

Poilievre also pledged that if the Conservatives form government after the April 28 election, he will set up a $3-billion fund to loan money to businesses hit by American tariffs to keep workers employed throughout the cross-border trade dispute.

Carney said Canada’s newly announced counter-tariffs will hit all vehicles from the U.S. that do not comply with the Canada-U.S.-Mexico Agreement and any non-Canadian content in compliant vehicles, but they will not apply to vehicle content from Mexico.

During a televised event with the five federal leaders, aired Thursday evening on Radio-Canada, Carney said he couldn’t rule out the possibility of a recession in Canada.

“We can never give guarantees when it comes to the economy,” he said in French.

Carney repeated his assurance that Canada’s supply management system will be off the table during trade negotiations, but he said it’s not necessary to pass legislation to protect the system.

On Wednesday, Trump confirmed he is going ahead with 25 per cent tariffs on automobile imports, which will add to existing 25 per cent tariffs on all steel and aluminum imports into the U.S., including from Canada.

He also declared a 10 per cent baseline tariff on imports from most countries and a lengthy list of higher tariffs dozens of countries will face. A White House fact sheet said goods imported under the CUSMA trade pact will not face tariffs, although imports that fall outside of it will be hit with 25 per cent levies.

Both Canada and Mexico remain under the threat of economywide duties that Trump has linked to the flow of fentanyl into the U.S.

Carney said Thursday that Trump’s tariffs on Canada are unjustified, unwarranted and misguided -- and he warned that Trump’s overall campaign of trade hostility against countries around the world will “rupture” the global economy.

The Green Party said Thursday it’s time for Canada to become more than a resource economy by adding value at each stage of production and investing in domestic manufacturing.

In a media statement, the party also urged the federal government and the Canada Pension Plan Investment Board to take an active role in building the country’s future.

“Canada’s wealth must be put to work for Canada, not the best rate of return in global markets,” said Elizabeth May, Green Party co-leader.

— With files from Craig Lord, Darryl Greer, Kyle Duggan and Catherine Morrison in Ottawa and Sarah Ritchie in Kingston, Ont.

This report by The Canadian Press was first published April 3, 2025.