Key Takeaways
- The year 2025 was marked by significant political shifts in Canada, including the resignation of Prime Minister Justin Trudeau and the election of Mark Carney as the new Liberal leader.
- The US-Canada relationship was a major focus, with President Donald Trump imposing tariffs on Canada and making "51st state" jabs, leading to a surge in patriotism and a "elbows up" movement.
- The Liberal party, led by Mark Carney, made a remarkable comeback in the election, winning a fourth consecutive mandate and defying expectations.
- The new government, led by Prime Minister Carney, has introduced significant legislation, including Bill C-5, which aims to fast-track major projects and reduce Canada’s dependency on the US.
- The year also saw significant developments in the relationship between the federal government and Alberta, including a memorandum of understanding on a new oil pipeline to the West Coast.
Introduction to 2025
The year 2025 was a significant one for Canada, marked by major political shifts and developments that had far-reaching impacts on the country. The year began with the resignation of Prime Minister Justin Trudeau, who had been facing internal pressure and resistance from within his own party. This set the stage for a leadership race, which was won by Mark Carney, a former central banker with no prior political experience. Carney’s election as Liberal leader marked a significant turning point for the party, which had been struggling in the polls and was seen as being on the brink of collapse.
The Trump Effect
One of the major factors that contributed to the political shifts in Canada in 2025 was the actions of US President Donald Trump. Trump’s imposition of tariffs on Canada, as well as his "51st state" jabs, sparked a surge in patriotism and a sense of defiance among Canadians. The "elbows up" movement, which was sparked by a comment made by actor Mike Myers on Saturday Night Live, became a rallying cry for Canadians who were fed up with Trump’s actions and wanted to assert their country’s independence. The movement had measurable economic effects, with many Canadians choosing to boycott American products and support Canadian businesses instead.
The Liberal Comeback
The Liberal party, led by Mark Carney, made a remarkable comeback in the election, winning a fourth consecutive mandate and defying expectations. Carney’s ability to cast himself as a strong steward of the economy and a crisis manager helped to neutralize the Conservative party’s attacks and win over voters who were concerned about affordability and the impact of Trump’s tariffs. The Liberal party’s victory was also helped by the fact that Carney was able to repeal the consumer carbon price, which had been a major point of contention for many Canadians.
Major Legislation
One of the significant pieces of legislation introduced by the new government, led by Prime Minister Carney, was Bill C-5, which aims to fast-track major projects and reduce Canada’s dependency on the US. The bill, which was passed on June 26, has been hailed as a major nation-building initiative and has the potential to create thousands of jobs and stimulate economic growth. However, the bill has also been criticized by some Indigenous groups, who argue that it does not provide sufficient consultation and does not respect their rights.
Alberta and Ottawa Make Nice
The year 2025 also saw significant developments in the relationship between the federal government and Alberta. For many years, Alberta had been a thorn in the side of the federal government, with the province often feeling that its interests were not being represented in Ottawa. However, with the election of Mark Carney as Prime Minister, the relationship between the two began to improve. In November, Carney and Alberta Premier Danielle Smith signed a memorandum of understanding, which outlined the conditions for a new oil pipeline to the West Coast. The deal marked a significant shift in Ottawa’s relations with Alberta and was seen as a major breakthrough in the country’s energy policy.
Crossing the Floor
Finally, the year 2025 saw several Conservative MPs cross the floor to join the Liberal party. The first to make the switch was Nova Scotia MP Chris d’Entremont, who crossed over on November 4, the same day that Carney delivered his first budget. He was followed by Ontario MP Michael Ma, who made the switch on December 11. The defections have given the Liberals a significant boost, and the party is now just one seat shy of a majority. The Conservatives, on the other hand, are facing a crisis of confidence, with many questioning the leadership of Pierre Poilievre. With reports suggesting that more floor-crossings may be on the way, the political landscape in Canada is likely to continue to shift in the coming months.