MNI BRIEF: Mark Carney Calls Snap Canada Election For April 28

Mark Carney on Sunday called a snap election for April 28, with the former BOC and BOE Governor seeking a seat for himself in Parliament and a mandate for his Liberals to negotiate tariffs with Donald Trump.

Carney called the vote about a week after taking over from Justin Trudeau as prime minister following a party leadership race. The move comes the day before Parliament was due to re-open with opposition parties saying they would have passed a non-confidence motion forcing an early election before one due in October.

Trump's talk of economic force making Canada the 51st State looms over the campaign. The president intends to fix a sweeping 25% tariff on its northern neighbor April 2. Canada sends 75% of exports to the U.S., a reliance built up through deals signed with Ronald Reagan, Bill Clinton and during Trump's first term. 

“We are facing the most significant crisis of our lifetimes because of President Trump’s unjustified trade actions and his threats to our sovereignty. Our response must be to build a strong economy,” Carney said. He proposed cutting the lowest tax bracket 1pp. 

Pollster 338Canada showed shows Liberals could win a majority, a reversal of months showing Pierre Poilievre's Conservatives would win.

Poilievre’s views include firing the BOC Governor, balanced budgets and being a "tough guy" with Trump. Carney won't engage in talks with Trump until he shows "respect" while cautioning Canada faces retaliation limits.

The next PM also faces a housing squeeze, stagnant productivity and slowing record immigration. (See: MNI INTERVIEW: Carney Short On 'Big Bang' Reforms- Jack Mintz)

While Canada's budget deficit is about 1% of GDP versus more than 5% in the U.S., in cash it's the biggest since since Canada was founded in 1867 excluding the pandemic. That leaves difficult choices against meeting NATO's 2% GDP target.