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MONTREAL \u2014 The state of the Canadian economy and U.S. President Donald Trump\u2019s trade threats topped the agenda for the Liberal party\u2019s English language leadership debate, the second in as many days and the last of the campaign.<\/p>\n
Presumed front-runner and former Bank of Canada governor Mark Carney and former finance minister Chrystia Freeland clashed over the Liberal government\u2019s record of economic management.<\/p>\n
\u201cOur economy was weak before we got to the point of these threats from President Trump,\u201d Carney said. \u201cThat\u2019s why we need big changes to how we\u2019re managing this economy.\u201d<\/p>\n
He said the economy has relied in recent years on a big boost to the labour force caused by a surge in immigration, along with government spending that grew at a rapid clip.<\/p>\n
Freeland argued that Canada is in a \u201cstrong fiscal position\u201d and that Liberals should deliver solid economic and social policy at the same time.<\/p>\n
\u201cWe need to be really careful not to repeat Conservative talking points,\u201d she said. \u201cCanada most definitely is not broken. We are a strong, resilient country.\u201d<\/p>\n
Freeland said she would improve productivity by improving interprovincial trade, recognizing the foreign credentials of professionals who are already here, cutting red tape to get large projects built, and protecting rural farmers \u2014 including supply management.<\/p>\n
The candidates drew sharper contrasts with each other than they did in Monday\u2019s French debate, though they stopped short of launching outright attacks.<\/p>\n
Montreal businessman Frank Baylis positioned himself as the only candidate who understands business and politics, saying he\u2019ll bring \u201cfiscal discipline to Ottawa\u201d by increasing productivity.<\/p>\n
Former Liberal House leader Karina Gould said increasing productivity over a short period would not help balance the books.<\/p>\n
She said that as the country faces a time of great economic stress, Ottawa should be there to support Canadians, just \u201clike the federal government was during the pandemic.\u201d<\/p>\n
The candidates were each pressed to explain how they would react if Trump moves ahead with sweeping tariffs against Canada next week.<\/p>\n
Carney said he would quickly gather the premiers together and hit back with dollar-for-dollar tariffs designed to have minimal impacts in Canada.<\/p>\n
He said the United States is already showing signs of feeling the economic pain of Trump\u2019s policies and that Canada \u201cwill amplify that.\u201d<\/p>\n
Freeland said she would immediately take aim at Trump\u2019s best friends and hit them with a wave of targeted counter-tariffs that would cause an immediate stock market reaction.<\/p>\n
\u201cOur retaliation will be a lot smarter than their dumb tariffs,\u201d she said, alluding to a Wall Street Journal editorial that called Trump\u2019s tariff strategy \u201cThe Dumbest Trade War in History.\u201d<\/p>\n
She said lobby groups such as the American Farm Bureau would quickly complain to Trump about the Canadian products they need becoming too expensive.<\/p>\n
\u201cThat reaction, that pain, will cause Trump, ultimately, to back down \u2014 just like he did last time,\u201d Freeland said, citing her past involvement in dealing with the first Trump White House\u2019s tariffs.<\/p>\n
Baylis said Canada should \u201ccompletely\u201d support the industries Trump targets and not let him take Canadian jobs away. He said he would quickly meet with Mexican President Claudia Sheinbaum to rally a co-ordinated response to Trump.<\/p>\n
\u201cHe\u2019s not going to stop until he gets the lesson that he can\u2019t get away with this,\u201d Baylis said.<\/p>\n
Gould pledged transparency in her approach, vowing to call together the premiers and share her plan with the entire country \u201cbecause Canadians deserve to know.\u201d<\/p>\n
Liberal party members can begin casting advance votes for their preferred candidates as early as Wednesday.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n