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Liberal Party of Canada Retains Power amid Trade War

Voters Show Nation Starkly Divided across Provinces

Liberal Party
Prime Minister Mark Carney, a former governor of both the Bank of Canada and the Bank of England, defeated Conservative challenger Pierre Poilievre.

Canada’s April 28 parliamentary election unfolded amid a nascent trade war with the United States and growing concerns about housing affordability and immigration. The ruling Liberal Party and the Conservative Party captured a combined 91 percent of seats in the House of Commons, despite competition from 18 political parties.

As of this writing, the Liberal Party leads with 49 percent of the vote, ahead of the Conservatives’ 42 percent. Voter turnout reached 67 percent of the 28.9 million registered voters, making it one of the three highest participation rates in the past decade.

The remaining vote split among the Bloc Québécois (BQ), New Democratic Party (NDP), Green Party (GP), and the People’s Party of Canada (PPC). The PPC, however, failed to win any seats.

Liberals Form Minority Government

Elections Canada reported Liberals secured 168 seats, falling short of the 172 needed for a majority, and will now govern as a minority. This outcome forces the party to negotiate with smaller factions to pass legislation. The Conservatives won 144 seats. The BQ achieved 23 seats in Quebec, the NDP 7, and the Greens 1.

Prime Minister Mark Carney, a former governor of both the Bank of Canada and the Bank of England, defeated Conservative challenger Pierre Poilievre, a current House of Commons’ MP and former cabinet minister (2013–2015).

Although Poilievre led the race by up to 25 points in national polls some months ago, popular support eroded following US-Canada trade tensions. A March 20 Ipsos poll showed 41 percent of Canadians trusted Carney to manage relations with US President Donald Trump, compared to 31 percent for Poilievre. Moreover, 43 percent believed Poilievre would “roll over and accept” Trump’s demands, almost the double of those who said the same of Carney.

Economic, Immigration Pressure

A March poll by YouGov found that nearly half of Canadians now rank US-Canada relations as their top political concern. The cost of living, driven by surging housing prices and inflation, was the second major concern. Since 2020, average rent across Canada has risen by 18 percent. One of the reasons is that workers and students immigrating into Canada have increased the housing demand. 

Other major concerns include a deteriorating healthcare system and a weakening labor market. Wait times to see a general practitioner rose from an average of 20.9 weeks in 2019 to 27.7 weeks in 2024, according to free-market think tank Fraser Institute. Unemployment climbed to 6.7 percent after the economy lost 32,600 jobs in 2024, the first net job loss in three years.

Carney’s Early Moves as Prime Minister

Since assuming office on March 14, 2025, Carney has taken immediate steps to address voter discontent. He eliminated the consumer carbon tax to ease economic pressure.

He also pledged to confront US trade aggression and stimulate Canada’s export economy. Reflecting growing public concern, Carney supports limiting immigration to ease pressure on housing and healthcare.Carney succeeded Justin Trudeau, who resigned earlier this year after 11 years in office. Trudeau’s departure followed internal party turmoil and a challenging national outlook. As Carney moves forward, he must navigate a fragmented Parliament and assemble a new Cabinet to face Canada’s mounting political and economic challenges.

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