Ottawa, ON, Canada (WNEWS) – As Canada enters 2025, the year ahead promises to be anything but ordinary. Political intrigue, tax hikes, and escalating tensions with the United States under President Trump’s administration have positioned the nation at a pivotal juncture of transformation. Amidst a looming federal election, intensifying international trade disputes, and growing discontent with domestic policies, Canadians are preparing for a year of substantial change and potential upheaval.
Federal Election 2025: A Crossroads for Canadian Politics
The upcoming federal election is set to be one of the most hotly contested in recent memory. Prime Minister Justin Trudeau faces mounting pressure after nearly a decade in power. While his Liberal government has championed progressive policies, including carbon pricing and reconciliation efforts, criticism over recent scandals and perceived inefficiencies has eroded public trust.
Trudeau and the Liberals concluded 2024 with the lowest polling and approval ratings in modern history. Numerous polls indicate that the Liberals have a mere 16 percent approval rating, which is the lowest among the G7 countries.
Recent opinion polls reveal a precipitous decline in public support for Prime Minister Justin Trudeau and the Liberal Party. Data from the Angus Reid Institute indicates that only 58% of individuals who voted Liberal in 2021 intend to do so in the upcoming election, reflecting growing disenchantment among the party’s traditional base.
Further compounding the party’s woes, a survey conducted between December 27 and 30, 2024, shows that the Conservative Party has surged ahead, with 44% of respondents expressing support, while the Liberals have plummeted to 21%. This significant gap underscores the challenges facing the Liberals as they head into the 2025 election.
Key Issues in the Election
- Affordability and Inflation: Housing affordability and inflation continue to be the top concerns for Canadians, especially younger voters who are struggling to enter the housing market. Carbon taxation has been the most contentious issue over the past year and a half.
- Government Scandals: Allegations of foreign interference, tensions with India, and dissatisfaction within the Liberal Party have dominated headlines, casting a shadow over Trudeau’s leadership.
- The Conservative Surge: Pierre Poilievre, leader of the Conservative Party, has gained momentum, particularly with promises to tackle affordability issues and repeal controversial Liberal policies like the carbon tax.
The combination of scandals and declining public support has led to internal strife within the Liberal Party. A majority of the caucus is now urging Prime Minister Trudeau to resign, expressing concerns over his leadership and the party’s diminishing prospects in the forthcoming election. This internal pressure has intensified following the resignation of key figures, including Deputy Prime Minister Chrystia Freeland, who departed over disagreements regarding the handling of impending U.S. tariffs and government spending.
Economic Policies: More Taxes, Rising Costs
Carbon Taxes on the Rise
Canada’s federal carbon tax is set to increase significantly in 2025, part of the government’s efforts to curb emissions. This move, however, has sparked widespread debate.
Impact on Canadians: Gasoline prices in April are projected to rise by 21 cents per liter, and natural gas costs will increase significantly. While the Canada Carbon Rebate provides some relief, critics contend that it fails to compensate for the increased living expenses faced by middle-class households.
Payroll and Income Taxes
The increases in payroll taxes, including higher Canada Pension Plan (CPP) and Employment Insurance (EI) contributions, are expected to place additional financial pressure on workers and businesses alike.
Small Business Concerns
Small business owners, especially those in sectors like retail and hospitality, are expressing concerns that the combination of increasing operational costs and decreasing consumer spending could result in layoffs or business closures.
International Relations: U.S.-Canada Trade Disputes Escalate
The inauguration of Donald Trump in January 2025 has rekindled tensions between Canada and its largest trading partner.
Trump’s Proposed Tariffs
President Trump’s proposed 25% tariffs on Canadian imports threaten to destabilize trade between the two nations. Major industries like automotive, lumber, and agriculture are particularly vulnerable to these measures.
Canadian Retaliation
In response, Canadian officials have indicated their readiness to impose counter-tariffs and restrictions on exports, including electricity to U.S. states. Experts caution that such measures could escalate into a full-blown trade war, resulting in severe repercussions for both economies.
Energy Tensions
The U.S. remains Canada’s largest energy market. Disruptions to this partnership could hinder ongoing efforts to transition toward greener energy sources, complicating Canada’s climate goals.
Government Scandals: A Blow to Public Trust
Recent months have seen the Liberal government embroiled in multiple controversies, undermining its credibility with voters.
- Foreign Interference Allegations: Claims of foreign interference in Canadian politics, particularly involving India, have raised questions about electoral integrity and national security.
- Party Fractures: Reports of internal dissent within the Liberal Party indicate that prominent figures are urging Trudeau to resign before the election, further destabilizing the party. This follows the sudden resignation of former Finance Minister and Deputy Prime Minister Chrystia Freeland in Mid-December.
- Ethics Concerns: Past ethics violations, including the SNC-Lavalin scandal and the WE Charity controversy, remain fresh in the public’s mind, reinforcing calls for greater transparency.
The Liberal government is also embroiled in a significant controversy involving the Sustainable Development Technology Canada (SDTC) fund, colloquially termed the ‘Green Slush Fund.’ Allegations have surfaced that Liberal appointees misallocated nearly $400 million in taxpayer money to companies with which they had personal or financial ties. Notably, the Auditor General identified over 186 conflicts of interest, including a case where the Prime Minister’s handpicked chairperson directed $217,000 to her own company.
This scandal has led to a paralysis in parliamentary proceedings, with opposition parties demanding full disclosure of documents and a thorough investigation into the fund’s management. The government’s reluctance to release unredacted documents has further fueled suspicions of corruption and lack of transparency.
What Lies Ahead?
The combination of political instability, economic uncertainty, and international tensions makes 2025 a defining year for Canada. Voters will be forced to weigh the promises of new leadership against the challenges of rising costs and a changing global landscape.
As the federal election approaches, the stakes have never been higher. Canada’s future hinges on how it addresses its internal challenges and manages external pressures.
Stay tuned to WNews as we provide comprehensive coverage of the Canadian 2025 Federal Elections, from the latest polls to the campaign leading up to Election Day.
