Inflation, Trump's Tariffs, Climate, Immigration And More | Key Issues At Stake For Canada Elections 2025

Canadians head to the polls today in an election shaped by economic and geopolitical pressures. Donald Trump's renewed tariffs have triggered a trade war with the country’s largest trading partner. The cost of living has risen faster than wages for the third consecutive year.

Wildfires across Alberta and British Columbia have laid bare the country's vulnerabilities to climate change.

Against this backdrop, voters are choosing between starkly different proposals on how to defend Canada's economic sovereignty, rebuild social protections, and navigate a new era of global uncertainty.

The Cost of Living

Inflation remains a searing concern for Canadians, as the cost of food, fuel, and basic goods has soared in the past two years. The Conservative Party, under Pierre Poilievre, has made the cost of living the centrepiece of its campaign, promising to "axe the carbon tax," lower income taxes, and deregulate sectors to ease consumer prices.

The Liberals, now under Mark Carney's leadership, are pitching a more tempered strategy: targeted tax credits for low- and middle-income Canadians and direct supports for families most affected by inflation.

The New Democratic Party (NDP), led by Jagmeet Singh, frames the crisis as a product of "corporate greed," pushing for a windfall tax on large corporations that have posted record profits during inflationary surges. Meanwhile, the Green Party argues that true economic security lies in overhauling the economy toward sustainable industries, reducing Canadians' dependence on volatile fossil fuel markets.

Housing

Canada's housing crisis has reached a new peak. In cities like Toronto, Vancouver, and Montreal, home ownership is increasingly out of reach for young Canadians, while rental prices are skyrocketing.

Poilievre has promised to free up federal land for housing and drastically cut building regulations. Carney's Liberals are proposing an ambitious national housing strategy that includes incentives for affordable rental construction and a first-time homebuyer support program.

The NDP advocates for the construction of 500,000 affordable homes over the next decade and stricter measures to curb real estate speculation by foreign buyers. The Bloc Québécois, while focused mainly on Quebec, proposes increased provincial control over housing policy to address regional disparities.

Healthcare

Public healthcare, a longstanding source of Canadian national pride, is straining under the weight of staff shortages, high patient volume, and an ageing population.

The NDP promises an ambitious expansion with universal pharmacare and dental care.

The Liberals, under Carney, propose conditional funding to provinces, aimed at reducing wait times and improving frontline care.

Poilievre proposes that provinces should be given greater autonomy over healthcare delivery, coupled with federal funding, a move critics warn could open the door to privatisation. The Greens call for a broader view: a "health-in-all-policies" approach that tackles environmental and social determinants of health, not just medical care.

Tariffs And US-Canada Relations

The defining question of this campaign is how Canada will navigate its deteriorating relationship with the United States. Trump's tariffs on Canadian steel, aluminium, and agricultural goods—paired with incendiary remarks about Canada becoming the "51st State"—have rattled the political establishment.

Most parties agree on retaliatory tariffs, but differ on strategy. Poilievre’s Conservatives propose using tariff revenues for direct tax relief for workers. Carney's Liberals propose financial support for affected industries, C$5 billion for infrastructure upgrades, and C$2 billion to safeguard the auto sector.

Singh’s NDP promises to funnel every dollar raised toward relief efforts and has threatened a 100% tariff on Tesla products if escalation continues. The Bloc Québécois calls for pandemic-style support packages, particularly for Quebec’s struggling aluminium industry.

Both the Conservatives and Liberals vow to dismantle internal trade barriers, while Poilievre is pitching a "Commonwealth trade and mobility agreement" with the UK, Australia, and New Zealand.

Climate

The wildfires that devastated large parts of Alberta and British Columbia last summer have thrust climate change back into the national spotlight. The Greens and the NDP are pushing for an emergency-level response: ending fossil fuel subsidies, halting new oil and gas projects, and investing heavily in renewable energy.

The NDP matches this urgency with a pledge to phase out fossil fuels by 2035.

Carney's Liberals maintain their commitment to net-zero emissions by 2050, though critics point to past Liberal support for pipeline expansions as a mark against their credibility.

Poilievre’s Conservatives acknowledge climate change but favour a technology-driven response, particularly carbon capture initiatives, over carbon pricing mechanisms. They propose reducing regulation to boost the economy and also want to remove the cap on oil and gas emissions, effectively ending Bill C-69, an environmental assessment act for major infrastructure.

Immigration and the Khalistan Movement

Immigration remains a divisive topic, sharpened by recent controversies over the Khalistan movement's activities within Canada.

Following India's diplomatic fallout with Canada over alleged interference, the issue of how to manage diasporic politics has become entangled with immigration debates.

The Liberals defend Canada’s multicultural policies while committing to crack down on any groups engaged in violent extremism. Poilievre’s Conservatives have taken a harder line, promising greater scrutiny of immigration processes and stronger laws against foreign political interference.

The NDP maintains a pro-immigration stance, focusing on immigrant rights and social integration.

This election is not merely about economic policy, healthcare funding, or housing. It is about how Canada defines itself in a changing world order where democracies are backsliding, and climate disasters are becoming routine.

Canadians today are voting for a government that will face immediate pressure to stabilise relations with the United States, to rebuild trust in public services, and to define whether Canada's future lies in closer alliances abroad or renewed protections at home. On every major issue, the country's path forward is still uncertain.