Federal Liberal leadership candidate Mark Carney outlines growth strategy in wake of U.S. tariff threats

Federal Liberal party leadership candidate Mark Carney was in Windsor on Wednesday, where he said his government would look at bringing back EV purchase rebates that would help bolster the auto sector.

Carney announced last week that, if he becomes prime minister, he will scrap the carbon tax and replace it with a combination of policies that will make polluters pay for their pollution while providing incentives for people to make environmentally-friendly choices.

"The climate plan that we announced last week, which focuses on having large polluters pay for climate smart choices – that creates the ability and resources that could provide additional incentives through federal programs for EVs," he said.

"And certainly my government would be looking at that going forward."

Carney — a former central banker — is among six candidates who have been approved by the party to run in the race to succeed Prime Minister Justin Trudeau. The others are former finance minister and deputy prime minister Chrystia Freeland, Nova Scotia MP Jaime Battiste, former government House leader Karina Gould and former Brampton, Ont., Liberal MP Ruby Dhalla.

Middle class tax cut, improved transportation corridors 

The Liberal MP for Windsor-Tecumseh introduced Carney at the news conference, held at the Gordie Howe International Bridge.

"I am proud to welcome back to Windsor-Essex a great friend of our community, someone who knows how to build, someone who knows how to fight for Canada and fight for workers and for Canadians," Irek Kusmierczyk said. 

Carney's announcement on Wednesday focused on laying out broadly what Canada needs to do to strengthen its position at home, regardless of Trump's tariff threats.

He promised to cut taxes on the middle class, reverse the government's capital gains tax increase, eliminate interprovincial trade barriers, improve transportation corridors — including "energy corridors" — and speed up processes like permitting to get things built faster. 

"You know this great bridge," he said of the Gordie Howe bridge in the background," Those workers were held back for many, many years by slow progress on permitting and agreements. … And our workers can do enormous things if governments partner with them and then get out of the way and allow them to build."

Carney also committed to accelerate private investment to build millions of new homes for younger Canadians and to "build a clean energy superpower that will power, literally, our prosperity."

"We face a very different world to the one we've known all our lives," he said. "A world in which Americans have become more neighbours than our good friends. And it can feel bewildering at first. But if we take control, it will be empowering."

Asked how he might shock-proof the Windsor-Essex economy to make it less vulnerable to policy changes in the U.S., Carney noted that Canada has guarantees under the Canada, U.S. Mexico free trade agreement, "although that may have to be litigated," he said.

He also said he would meet with the members of the automotive supply chain and look at how to build out from the relationship with the Americans.

Carney made one new announcement in Windsor Wednesday: a commitment to increasing the federal budget by 2030 to ensure two per cent of its gross domestic product goes to defence spending – the military investment benchmark set by NATO. 

Conservative Shadow Minister for National Defence emailed a statement to CBC following Carney's news conference questioning where the money would come from and what Carney planned to do with it. 

"Carbon Tax Carney has long been a supporter and advisor to Justin Trudeau's Liberal government which for the past nine years has failed our men and women in uniform and left the Canadian Forces under funded and under equipped," James Bezan said.

Carney was appointed governor of the Bank of Canada by then-Conservative Prime Minister Stephen Harper in 2008. He served in the role until 2013 and became the governor of the Bank of England from 2013 to 2020.