Canada on the Brink: Housing Crisis, Immigration, and Trade War Shape Elections

• Is Trump sinking Canada’s economy with tariffs?
• Why can’t Canada handle so many people?
• Who will stop the rise in rent prices?

The Canadian economy has become the central topic of the election campaign.

The general elections next Monday will pit two candidates who promise urgent solutions against each other.

The reason? The country faces a triple threat: a trade war with the U.S., a housing crisis, and uncontrolled immigration.

Since February, President Donald Trump has imposed harsh tariffs on Canada.

Canadian Elections Shaped by Tariffs

Strong words from Trudeau about tariffs and Trump: “What he wants is to see a total collapse of the Canadian economy. Because that would make it easier for him to annex us. That will never happen. We will never be the 51st state.” pic.twitter.com/3SR0FTDT4T

– Dori Toribio (@doritoribio) March 4, 2025

Key products like steel, aluminum, oil, and automobiles now pay up to 25% in taxes to enter the U.S. market. And that hits hard.

77% of Canadian exports are destined for the United States. Oil alone accounts for nearly 99% of total exports to its southern neighbor.

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In 2023, bilateral trade reached $904.2 billion, according to official data.

Canada responded with 25% tariffs on $43.35 billion worth of U.S. products. But the damage had already been done.

The IMF cut Canada’s 2025 growth forecast to 1.4%, the worst figure among advanced economies.

Experts warn that 150,000 jobs could be lost, especially in key sectors.

That’s why the two main candidates, Mark Carney and Pierre Poilievre, promise to diversify exports.

Both seek to reduce dependence on the U.S. However, this is not voters’ only concern.

Is There a New Crisis?

Since the end of the pandemic, life in Canada has become more expensive. Housing prices have soared by 68% over the past decade.

Today, an average home costs 707,000 Canadian dollars. That’s almost nine times the average family income, and in cities like Toronto or Vancouver, it can reach 12 times.

At the same time, the population has grown rapidly.

Immigration in Canada, driven by the policies of former Prime Minister Justin Trudeau, has surpassed three million non-permanent residents.

In 2023 alone, Canada admitted 430,000 new permanent residents. The pressure on services and housing continues to mount.

In response, Carney wants to limit temporary residents to less than 5%.

Poilievre goes even further: he proposes accepting only 250,000 permanent immigrants per year.

Both agree on one thing: Canada cannot continue growing uncontrollably.

With information from the EFE agency.