Canadians are heading to the polls on Monday in what’s shaping up to be a pivotal election.
With tensions flaring between Ottawa and Washington, and growing worries at home about affordability, housing, and defence, voters are being offered sharply different visions for the country’s future. Here’s how the main federal parties stack up on key issues shaping the national debate.
Cost of living is top of mind for many Canadians, who are feeling squeezed by rising prices on everything from groceries to rent. Both the Liberal and Conservative parties are offering tax relief for lower-income Canadians. The Liberals are pledging a modest reduction to the lowest federal tax bracket, while the Conservatives want a more aggressive cut, lowering it from 15% to 12.75%. The Conservatives also plan to eliminate sales tax on new homes and Canadian-built vehicles, aiming to make big purchases more affordable. The Liberals, on their part, propose scrapping sales taxes on homes under C$1 million for first-time buyers. The Bloc Québécois is focusing on seniors, pushing to boost Old Age Security payments by 10% and cap credit card interest rates. Meanwhile, the NDP has put forward a plan to remove the federal sales tax from essential services like power, phone, and internet bills, while doubling disability income payments.
Relations with the United States have become a central issue after President Donald Trump imposed new tariffs on Canadian goods, triggering a diplomatic and economic standoff. The major parties are backing retaliatory tariffs, but they differ on what to do with the revenue. The Conservatives want to use it for tax relief, especially for those affected by the trade conflict. The Liberals say the funds will support workers and businesses, while the NDP promises to channel every dollar into direct assistance for those hurt by the tariffs. The Liberals are also committing billions to diversify trade routes and protect industries such as auto manufacturing. Conservatives are vowing to tear down internal trade barriers and work toward a new trade pact with allies like the UK, Australia, and New Zealand. The Bloc wants targeted help for Quebec’s aluminium sector and wage supports similar to pandemic-era programs. The NDP has proposed a bold move: a full tariff on Tesla imports and a ban on Trump’s attendance at the upcoming G7 summit in Alberta if the US presses forward with its full tariff threat.
Military funding is another hot topic, especially given Canada’s long-standing shortfall in meeting NATO spending targets. The Liberals and Conservatives both aim to reach the 2% GDP goal by 2030, with billions earmarked for modern equipment and northern operations. The Liberals plan to spend C$18 billion in the next four years, focusing on submarines and icebreakers. Conservatives are allocating C$17 billion over the same period, while also planning to construct new military bases in the north. The NDP, which wants to hit the NATO goal by 2032, would cancel contracts for US-made fighter jets and aircraft and redirect funds toward building new bases in Canada’s Arctic.
Housing remains a pressing concern as prices continue to soar. The Liberals want to take a direct approach by creating a new federal housing agency to act as a national builder, with plans to provide C$25 billion in financing for prefab home manufacturers. They’re also aiming to more than double new housing starts each year, targeting 500,000. The Conservatives prefer a results-driven model, tying federal funding to how many homes cities actually build, encouraging faster development by municipalities.
With election day fast approaching, voters are weighing which party has the clearest path forward through rising tensions abroad and affordability challenges at home. Each party is offering distinct solutions, and the outcome will help determine how Canada navigates both domestic pressure and international turbulence in the years ahead.