Jagmeet Singh, leader of Canada’s New Democratic Party, spoke in Ottawa on April 3 to share a new plan as part of his election campaign. The Globe & Mail
NDP leader Jagmeet Singh has introduced a new plan to support Canada during the ongoing trade tensions. He wants Canadians to buy “victory bonds” to help ease the damage caused by U.S. tariffs. These bonds would give people a safe way to invest their money and support Canada at the same time.
Mr. Singh explained that the victory bonds would come with five- or 10-year options. They would offer a 3.5% interest rate, which is higher than what banks usually offer for five-year GICs. The interest would grow over time and be completely tax-free.
The money from these bonds would go toward building important things Canadians use every day, like roads, housing, bridges, and transit. Singh shared his idea during a news conference on Thursday. He said people are already boycotting U.S. products and cancelling trips to America. He believes victory bonds would give Canadians another way to stand strong in this trade battle.
“We saw it during wartime when Canadians came together and bought victory bonds,” Singh said. “This is a similar time. We’re in a trade war. Donald Trump is threatening our economy, and Canadians want to help. This is one way they can do that.”
According to the NDP, if someone invests $100 in a five-year bond, they’ll get back $118.77 when it matures. If they choose the 10-year bond, it would be worth $141.06. The tax-free earnings make it even more appealing for everyday Canadians.
When asked why this program should be brought back, especially since the Canada Savings Bonds program ended in 2017, Singh explained the times have changed. He said the country is facing a different kind of challenge now, and people want to support their country.
The NDP admits this program would cost more than borrowing money the usual way. For every $1 billion raised, it would cost about $10 million more than if Canada raised the money through capital markets. But Singh thinks it's worth it. He said he would rather pay interest to regular Canadians than to banks.
Running the program would also come with extra costs. The NDP estimates administrative costs would be between $75 million and $80 million. But Singh believes the benefits make it a good deal.
To show how much this kind of program could bring in, the NDP pointed to a similar bond in the U.K. called the Green Savings Bond. That program raises about $900 million each year and also funds public projects. Singh thinks victory bonds could have the same success in Canada.
This new plan could offer Canadians a clear way to support their country, grow their savings, and help fight back against the effects of the trade dispute.
