The state of Canadian economy and U.S. President Donald Trump’s trade threats dominated the agenda at the Liberal party’s English-language leadership debate held on February 25, 2025, in Montreal. This was the final showdown for the candidates seeking to replace Prime Minister Justin Trudeau.
Presumed front-runner Mark Carney, alongside former finance minister Chrystia Freeland, business mogul Frank Baylis, and former House leader Karina Gould, faced off on how best to combat the anticipated economic repercussions of Trump’s tariff strategies.
Carney opened the debate, stating, "Our economy was weak before we got to the point of these threats from President Trump." He emphasized the need for substantial changes to Canada's economic management, pointing out the reliance on immigration and government spending to boost the labor force.
Freeland countered by declaring, "Canada most definitely is not broken. We are a strong, resilient country." She affirmed Canada’s strong fiscal position and stressed the importance of aligning solid economic and social policies during challenging times.
The debate took on more urgency as the candidates confronted the possible ramifications of Trump's tariff threats. Each candidate offered insights on their approach to mitigate potential damage. Carney suggested quick action, saying he would gather the provincial leaders to implement "dollar-for-dollar tariffs meant to have minimal impacts on Canadians. "
Freeland exhibited determination, stating, "Our retaliation will be smarter than their dumb tariffs," implicitly referencing criticisms of Trump’s trade war as inefficient. She recounted her prior experience negotiating trade deals and indicated her readiness to push back against Trump’s tactics vigorously.
Baylis echoed these sentiments, insisting on strong support for Canadian industries directly threatened by Trump. He expressed confidence, claiming, "He’s not going to stop until he gets the lesson..." and suggested meetings with Mexican officials to coordinate responses.
Meanwhile, Gould emphasized transparency and the necessity of sharing plans with Canadians. She declared, "Because Canadians deserve to know," indicating her commitment to keeping the public informed about her strategies.
While the debate was primarily congenial, harsh words were reserved for the leading Conservative candidate, Pierre Poilievre, who was characterized as having Trump-like tendencies. Freeland labeled him "maple syrup MAGA," criticizing any potential Conservative-led response to Trump’s ultimatums.
Carney added, "Who's the worst person to stand up to Mr. Trump? Pierre Poilievre," stressing the idea of cohesion among Liberal candidates to face external pressures. Baylis called Poilievre out as "a career politician who likes to make up slogans and nothing else," thereby reinforcing the importance of true leadership against the backdrop of international threats.
The candidates clashed over the Liberal government's economic record as well. Carney criticized the previous government’s management of the economy, asserting the need for fiscal discipline, and focused on reducing unemployment and inflation, which he argued were neglected under Trudeau’s leadership.
Freeland maintained optimism about the economic state but acknowledged necessary reforms, saying, "We need to be really careful not to repeat Conservative talking points." She highlighted her track record of delivering solid policies and said improving interprovincial trade could significantly aid productivity.
Baylis positioned himself as uniquely qualified to intersect politics and business and pledged to boost productivity for fiscal discipline, whereas Gould countered by stating the government's role during economic hardships is to support Canadians effectively.
The debate featured multiple exchanges about the candidates' plans to regain the trust and support of younger voters, who trends suggested were drifting away from the Liberal party. Gould remarked the party must remain authentically progressive, asserting, "We will only win the next election by being Liberals — proudly."
Both Carney and Freeland stressed addressing the housing crisis by doubling construction outputs and plan to remove taxes for first-time home buyers to help those struggling with affordability issues.
With the Liberal party set to announce its new leader on March 9, 2025, voters will be watching closely as candidates strive to define their paths against both domestic challenges and external threats, particularly those posed by the U.S. under Trump’s administration.