The upcoming election - what you need to know

The first quarter of 2025 has passed in a blur of economic instability amid a backdrop of global political uproar as the US introduced tariffs of up to 25% on Canadian goods entering the United States. The impact has been widely felt, with businesses acknowledging the pressure this will place on their operations. At the same time, Prime Minister Justin Trudeau resigned on March 14 and was swiftly replaced by Mark Carney, who has since triggered a parliamentary election.

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When and how the outcome will be determined

Eligible Canadian voters will be asked to vote on April 28 for their preferred candidate in their local area (known as a riding), and the candidate with the most votes will win. The party that secures the most votes across the many ridings will form a government, with its leader being the new prime minister.

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What has happened since March 14

Prime Minister Mark Carney has already abolished the federal consumer carbon levy, a point-of-sale tax on gasoline that is likely to reduce gas prices by up to 17.6 cents a liter in the coming days. He has also had a telephone call with President Trump, and early indications suggest that they have found areas of common ground.

However, President Trump has reiterated his intent to introduce 25% tariffs on automobiles from April 2, making the subject of international trade and tariffs the primary point of interest in this election.

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What does this mean for Canadian businesses?

At the moment, business owners are stuck between a metaphorical rock and a hard place, unable to implement any mitigation plans as the outcome of the election could trigger significant changes that early intervention may undermine.

Franchisees should continue to be led by their franchisors, who will be seeking legal advice on how to proceed. It is important to avoid making any knee-jerk reactions over the coming month. Instead, focus on the present, keeping your business viable in the short term in whatever ways you can.

All of the political parties share a vision that Canadian producers and workers should not be disadvantaged by the outcome of the election and the trade war. It has been agreed that comprehensive negotiations will be held following the conclusion of the parliamentary campaign in which our country's economic security will be non-negotiable.

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Our advice to you

We know that these are unsettling times and that it is hard to plan. However, in less than a month, we will be in a much clearer position. Although it may be different than what we are used to, we are a resilient nation and we will find a way to prosper. Take advice from your chosen professionals regarding your specific circumstances, and do not make any rash moves until greater clarity is achieved.