On April 28, 2025, Canadians voted in an election that surprised many political observers. Mark Carney’s Liberal Party secured a victory, as confirmed by major news outlets like the CBC and The Washington Post.

Originally predicted to face a tough road after Justin Trudeau’s resignation, the Liberals managed to regain momentum, with many voters influenced by rising tensions with the United States over tariffs and trade policy.

With the Liberals set to lead the country once again, here’s a breakdown of what this outcome could mean for Canadians—especially when it comes to tariffs, investing, and Canada’s relationship with the U.S.

Tariffs and Trade Relations: What's Happening?

Trade tensions between Canada and the U.S. have escalated in recent months. In early 2025, the Trump administration imposed a 25% tariff on most Canadian goods, with a 10% tariff applied to Canadian energy products. Canada quickly responded with its own counter-tariffs, targeting a range of American goods.

While these tariffs have been temporarily delayed by 30 days for ongoing discussions, both countries are still navigating a tense trade environment.

Prime Minister-elect Carney has indicated that his government will prioritize maintaining strong trade ties with the U.S. while seeking to reduce Canada's reliance on any single trading partner. This could mean future efforts to diversify trade relationships with Europe, Asia, and other regions.

Key Takeaway:
For businesses and consumers, tariffs could mean higher prices for certain goods and materials if talks fail to ease tensions. Export-driven sectors such as energy, manufacturing, and agriculture are paying close attention to any policy shifts.

Investing: Market Reaction So Far

Financial markets responded cautiously but positively to the Liberal win. The Toronto Stock Exchange (TSX) futures ticked up by 0.2% the morning after the election, according to Reuters .

Mark Carney’s background as a former Governor of both the Bank of Canada and the Bank of England is viewed as reassuring for investors seeking stability during a volatile global environment. Analysts expect his government to focus on economic predictability, while navigating the ongoing tariff dispute with Washington.

Key Takeaway:
While short-term volatility remains possible due to trade negotiations, Canadian markets appear to view the election outcome as supportive of economic stability.

U.S.-Canada Relations: A Crossroads Moment

The election took place against a backdrop of rising nationalism in the U.S. and growing Canadian concerns about sovereignty.
President Trump’s recent comments suggesting that Canada was “taking advantage” of the U.S. on trade deals added to the political friction (source).

Going forward, experts expect Canada to balance two priorities:

• Maintaining close economic ties with the U.S., which remains Canada’s largest trading partner.
• Building new alliances with countries in Europe and Asia to hedge against future trade uncertainty.

Key Takeaway:
Canadian businesses and investors should expect a continued focus on trade diversification strategies in the coming years.

Final Thoughts

The Liberal victory in 2025 marks a key moment for Canada, particularly as the country faces a complex global environment.
Between ongoing tariff disputes, a shifting global economy, and the importance of maintaining strong U.S. ties, Canadians are likely to see an active focus on protecting the economy while building new pathways for growth.

While it’s still early, businesses and investors alike will want to watch the next steps closely—especially any developments in trade negotiations, tax policies, and investment incentives.