OTTAWA – Liberal Leader Mark Carney officially launched the 2025 federal election campaign today with a targeted message aimed at the heart of the Canadian middle class. Promising bold economic action, Carney unveiled a tax cut that he says will help Canadians keep more of their earnings—while also strengthening Canada’s economic position in the face of renewed tariffs from U.S. President Donald Trump.
“In a crisis, Canadians come together to tackle challenges – because united, we are Canada strong,” Carney said during the announcement in Ottawa. “Canadians are ready for change, and our Liberal plan will cut taxes for the middle class, create higher-paying jobs, build the fastest growing economy in the G7, and stand strong against President Trump’s tariffs.”
Answering questions from media, Carney expressed how in the past nine days, his government has taken new directions, set in place new policies and is different than the previous government. As Carney has taken on the leadership of the Liberal Party of Canada he has taken steps to erase many of the key points of focus under the leadership of Justin Trudeau.
Some political wags are wondering why Carney didn’t seek to run for the Conservatives.
The Liberals after years of the carbon tax have cancelled the tax on personal areas.
The party has announced tax cuts, and cancelled a capital gains tax increase.
Thunder Bay Takeaway: What This Means for Local Families
The proposed tax cut, which reduces the marginal rate on the lowest federal tax bracket by 1%, will save two-income households up to $825 per year. More than 22 million Canadians are expected to benefit—particularly middle- and low-income earners.
In regions like Thunder Bay and Rainy River, where household budgets are increasingly stretched by inflation, housing costs, and the rising price of groceries, the tax cut is being positioned as direct financial relief. Many in Northwestern Ontario, where average incomes are below the national median, could see proportionally greater gains from this move.
Strategic Response to American Tariffs
Carney used the announcement to sharply position his party’s economic plan as a counterbalance to escalating tensions with the United States. With Donald Trump back in the White House, new tariffs on Canadian exports are expected to hit industries such as forestry, mining, and manufacturing—sectors critical to the economy of Northern Ontario.
The Liberals’ plan, Carney said, is about building economic resilience. “My new government will focus on helping hard-working Canadians keep more of their paychecks to spend where it matters most: on homes, groceries, and their families.”
Policy Package: What’s in the Liberal Economic Plan?
The middle-class tax cut is part of a broader affordability strategy that includes:
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Eliminating the consumer carbon tax, a major reversal from previous Liberal climate policy, to lower household energy costs.
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Scrapping the GST on homes under $1 million for first-time buyers, aimed at improving housing affordability for young families and new buyers.
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Revamping Employment Insurance, with reforms to accelerate access to benefits and support for seasonal and gig workers—a move that could directly benefit workers in Thunder Bay’s tourism and natural resource sectors.
The Political Stakes
As a first-time political candidate, Carney is seeking to prove that his economic credentials as a former central banker can translate into real-world gains for voters. By tying tax relief to both domestic affordability and international trade defence, the Liberals are hoping to contrast their vision with that of Conservative leader Pierre Poilievre—particularly in key battleground ridings across Ontario.
For Northwestern Ontario voters, this campaign will test whether Carney’s message of fiscal relief and economic security resonates in communities facing stagnant wages, underfunded infrastructure, and exposure to cross-border economic pressures.
