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Here’s what the Liberals, NDP and Conservatives have promised to help offset the impact of tariffs.

The Liberal party

Liberal Leader Mark Carney stopped in Windsor, Ont., on March 26 to roll out a $2-billion pledge to help support Canada’s auto sector and the wider manufacturing network in the face of steep anticipated hits from tariffs.

That plan would “leverage government funding” to prioritize Canadian-built vehicles.

Carney also says he plans to fight back with retaliatory tariffs after U.S. President Donald Trump announced that he will impose 25 per cent tariffs on vehicles made outside the United States.

Earlier in the campaign, Carney said he would trim one percentage point off the lowest marginal tax rate in Canada, a move he said would help a dual-income family save as much as $825 a year.

He positioned the move as a way to bolster the economy and “stand strong against President Trump’s tariffs.”

The Conservative party

Leader Pierre Poilievre and his Conservatives have pledged a steeper cut to income taxes — a drop in the bottom tax bracket of 2.25 percentage points, a move they estimate would save a two-income family up to $1,800.

Like the Liberals, the Conservatives have presented the tax cut as a way to build up Canadian households and the broader economy.

“Conservative tax cuts will create jobs for Canadians and help build Canada’s economic fortress against American threats,” the policy announcement says.

Poilievre also has pitched changes to tax-free savings accounts to allow Canadians to invest an additional $5,000 in their TFSAs in Canadian businesses and assets.

He has said this proposal is aimed at “unleashing” the Canadian economy and standing up to Trump “from a position of strength.”

The Conservatives have sought to increase investment in Canada to offset the impacts of the trade war through measures such as a proposal to waive taxes on capital gains that are invested back into Canadian entities.

The NDP

NDP Leader Jagmeet Singh also has proposed changes to the tax system to ease the burden on workers.

The NDP would increase the basic personal amount — the share of income free from tax — for all Canadians earning less than roughly $177,000 in a year, and lower it for those making more.

The party also would waive the GST on a variety of essentials, double the Canada disability benefit and boost guaranteed income supplements.

“While the Liberals and Conservatives promise tax cuts for millionaires, we’re focused on helping the people who actually need it — families trying to get by, workers squeezed by higher costs and people directly hit by Donald Trump’s tariffs,” Singh said in a media statement.

The NDP also would make improvements to employment insurance and has promised to limit public funding for corporations relocating their businesses to the U.S. in response to the trade conflict.

What experts are saying

Alex Laurin, vice-president and director of research at the C.D. Howe Institute, said the parties’ proposals to lower income tax rates to offset the pain of tariffs are missing the mark.

Moves to reduce the tax base amount to structural changes to Ottawa’s finances, he said, while any crisis relief should be timely, temporary and aimed at those in need.

“If we get into a crisis, I don’t think anyone will be arguing that this is the policy that the workers need,” Laurin said.

He said that unless the tax changes are going to boost Canada’s economic output and increase revenues that way, the eventual result will be larger deficits or spending cuts.

The C.D. Howe Institute is in favour of tax cuts but wants to see them made to the second tax bracket. Laurin said that would stimulate more economic activity than a cut to the bottom tax rate.

Bea Bruske, president of the Canadian Labour Congress, said no party has committed to work with banks and financial institutions “to ensure laid off workers and out of work self-employed don’t default on their mortgages, credit cards and car loans by requiring banks, mortgage companies, and loan providers to ease payment terms and rule out foreclosures.”

She acknowledged that the Liberals have taken “some steps” on worker protections but said their EI plan “still leaves too many workers behind.” Bruske said the Liberals’ move to reverse a “modest” capital gains tax increase was also a step backward, adding that what Canada needs is “a fair tax system and to invest in public services.”

“Their auto sector promises are welcome, but workers need immediate action,” Bruske said.

Bruske criticized the Conservatives’ approach, arguing that the party is “putting tax cuts for the wealthy ahead of real solutions for workers.”

“Workers and retirees deserve stability, not empty promises,” she said.

Bruske said the NDP is showing “strong leadership on the issues that matter to workers.”

“Their plan to expand EI access and improve benefits will help strengthen Canada’s safety net,” she said. “Unlike other parties focused on tax cuts for the rich, the NDP’s tax plan prioritizes fairness — ensuring the wealthiest pay their share and that public services remain strong.”

While the CLC has not formally endorsed any party in this election campaign, Bruske appeared with Singh at a press conference 16 days before the election began.

— With files from Catherine Morrison

This report by The Canadian Press was first published March 28, 2025.