Feb 5 – Liberal leadership contenders Mark Carney and Chrystia Freeland have unveiled key aspects of their economic strategies, both taking aim at U.S. President Donald Trump’s policies while emphasizing the need for investment and economic resilience in Canada.
At a press conference in Windsor, Ontario, Carney, the former governor of the Bank of Canada and the Bank of England, pledged to accelerate Canada’s defense spending to meet the NATO target of 2% of GDP by the end of the decade. He also vowed to repeal the capital gains tax increase and introduce tax cuts for the middle class if elected prime minister.
“My government would ensure that Canada pulls its full weight in NATO by reaching the 2% defense spending target by 2030,” Carney said, addressing concerns over Canada’s delayed commitment. Currently, Canada remains one of the few NATO countries yet to meet this benchmark, a situation that has drawn criticism from allies and could become a more pressing issue under Trump’s administration.
Carney also highlighted his plans to cut bureaucratic delays in infrastructure projects, remove interprovincial trade barriers, and diversify Canada’s international trade partnerships to reduce economic dependence on the U.S.
“Donald Trump’s aggressive economic policies threaten Canadian jobs and businesses. We must be proactive in defending our economic interests and ensuring we remain independent and resilient,” Carney stated. He stressed that while the U.S. remains a crucial ally, Canada must not “put all our eggs in one basket.”
Trump recently granted Canada a 30-day exemption from proposed tariffs, citing concerns over border security and fentanyl trafficking. However, his broader trade policies—including potential revisions to the USMCA—continue to pose challenges.
Carney also took a firm stance against Trump’s suggestion that Canada could become part of the U.S. “This proud country will never be a state of the United States in any shape or form,” he asserted.
Despite proposing spending cuts to make the government more efficient, Carney assured that key Liberal initiatives like dental care and child care would remain intact. “These programs are making a difference in the lives of Canadians, and we will not roll them back,” he said.
Freeland’s Economic Blueprint
Freeland, considered a leading competitor in the leadership race, also detailed her economic priorities. Positioning herself as the candidate best equipped to counter Trump’s protectionist stance, she emphasized the urgency of taking decisive economic action.
Her 10-pillar economic plan includes eliminating interprovincial trade barriers, streamlining foreign credential recognition for skilled trades and healthcare professionals, and increasing investment in critical minerals. She also proposed making trade schools tuition-free to support workforce development.
Freeland pledged to leverage federal transfers to push provincial governments toward greater economic cooperation. “On my first day as prime minister, I will convene a meeting with provincial leaders and set a 30-day deadline to remove interprovincial trade restrictions,” she stated.
Her plan also includes a ‘Buy Canadian’ strategy, particularly in defense procurement, to strengthen domestic industries.
With the Liberal leadership race intensifying, both Carney and Freeland are presenting themselves as leaders who can safeguard Canada’s economic future while standing up to Trump’s economic nationalism. Their proposals set the stage for a crucial debate on how Canada should navigate shifting global trade dynamics and maintain its economic sovereignty.
