Conservative Leader Pierre Poilievre announced plans to remove federal taxes on new vehicles manufactured in Canada and create a temporary loan program to help businesses affected by U.S. President Donald Trump’s tariffs on Canadian-made vehicles.
Speaking in Kingston, Poilievre said his plan to axe the Goods and Services Tax would shield auto workers from economic fallout caused by what he called Trump’s “unjustified attack on Canada’s economy.”
Trump’s 25 per cent tariff on Canadian-made cars threatens thousands of jobs, particularly in Ontario.
Poilievre says removing the GST will help consumers and support the auto sector.
“I will stand up for Canada and protect our auto workers by axing the GST on cars we make here at home,” he said.
Removing the GST would reduce the price of a Canadian-manufactured vehicle by five per cent.
Poilievre claims that a car priced at $50,000 would see a direct $2,500 reduction.
He continued his statement by urging provinces to join his initiative to eliminate their sales taxes on made-in-Canada cars, which could save consumers between $6,000 and $7,500 on a $50,000 vehicle.
Poilievre also announced the ‘Keep Canadians Working Fund,’ a $3-billion emergency program providing short-term credit lines and low-interest loans to businesses hit by Trump’s tariffs.
Modelled on the Harper government’s 2008 Business Credit Availability Program, the fund will be administered through the Business Development Bank of Canada, Export Development Canada and Farm Credit Canada.
Poilievre’s announcement came one day after Trump’s latest round of tariffs on April 2, dubbed “Reciprocal Tariff Day.”
The U.S. imposed tariffs on dozens of countries but spared Canada and Mexico.
However, past tariffs remain, including a 25 per cent tariff on Canadian-made vehicles set to take effect at midnight.
“The continued threat of tariffs underscores the importance of removing the GST on Canadian-made cars and supporting affected businesses,” Poilievre said.
With a federal election approaching, Poilievre’s proposals reinforce his campaign focus on economic nationalism and job protection.