2025 Federal Election

• Key Retail Issues
• Where the Parties Stand
• Get Involved
• Contact Us

_{Source: StatCan}

*Core retail excludes gas stations and auto dealerships

Election 2025: VOTE RETAIL

Introduction

Retail is a cornerstone of the Canadian economy, employing 2.3 million people and serving as the final link in global supply chains, ensuring goods reach consumers. Retail is not just about transactions—it shapes our communities, from small shops to major stores across the country.

As Canada faces growing economic and global challenges, ensuring the vitality of the retail sector is paramount. This is why retailers, big and small, unite under the Retail Council of Canada to advocate for policies that strengthen the sector.

VOTE RETAIL is our plan to ensure that, no matter who wins the federal election, they champion these key goals:

• End the Tariff War
• Fight Retail Crime, especially Organized and/or Violent Crime
• Drive Down Retailers’ Operating Costs
• Create a Level Playing Field for Retail in Canada
• Introduce Programs to Increase Retail Activity in Canada

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1. End the Tariff War

U.S. tariffs on Canadian goods and Canada’s necessary counter-tariffs are harming the retail sector, disrupting supply chains and increasing costs. Retailers must scramble for new suppliers, further straining an already fragile post-COVID supply chain. Moreover, a weaker Canadian dollar, slowing economy, and rising inflation reduce consumer purchasing power, hurting retailers. This all leads to low consumer confidence, a key ingredient in a healthy retail sector. For all these reasons, a new government must pull out all the stops to bring the tariff war to an end.

Policy Solutions:

• Provide Exemptions for Retail Goods: When Canadian or international alternatives aren’t available, retailers should receive tariff exemptions.
• Reduce Regulatory Barriers: Temporarily ease product labeling requirements to allow retailers to pivot to new suppliers.
• Implement GST Holidays: Boost consumer confidence and affordability by offering temporary GST relief.
• Streamline Inter-Provincial Trade: Adopt a “passport system” for recognizing provincial regulations across Canada.
• Support Domestic Production: Provide financial incentives to increase Canadian manufacturing.
• Ensure Transportation Reliability: Designate ports and rail infrastructure as “essential” to prevent supply chain disruptions.
• Offer Financial Support for Retailers: If tariffs persist, provide liquidity support to retailers facing increased costs.

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2. Fight Retail Crime

Retail crime has surged in frequency, brazenness, and violence, creating serious concerns for businesses, employees, and shoppers alike. Organized retail crime, shoplifting, and smash-and-grab robberies have not only led to significant financial losses but have also threatened the safety and well-being of communities. These crimes place undue pressure on law enforcement, disrupt local economies, and contribute to rising consumer prices. Addressing this growing issue requires a coordinated effort from the federal government, more resources for law enforcement agencies, and reforms to the criminal code.

Policy Solutions:

• Enhance Information Sharing: Work with the provinces and allow retailers to legally share data with law enforcement and each other to track offenders.
• National Retail Crime Summit: Convene a federal summit on retail crime, similar to the recent auto theft summit that contributed to a large decrease in those criminal activities.
• Bail Reform & Criminal Code Amendments: Strengthen penalties for violent retail crimes and repeat offenders.

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3. Drive Down Retailers’ Operating Costs

Retailers in Canada face numerous financial pressures that ultimately increase costs for consumers. Among the most significant contributors are tariffs on essential goods, high credit card processing fees, the financial burden of climate change adaptation, and challenges associated with transitioning away from single-use plastics. Addressing these issues requires government intervention through policy changes and financial incentives. The following recommendations outline key actions that can drive down retail operating costs, making essential goods more affordable and fostering a more sustainable retail environment.

Recommendations:

• Eliminate Tariffs on Clothing, Shoes, and Baby Items: Baby products such as car seats, diapers, bottles, strollers, and furniture face tariffs ranging from 6% to 18%, increasing the cost of raising a family. Since domestic manufacturing of textiles and clothing is now minimal, and in light of new U.S. tariff pressures, permanently removing these tariffs will lower costs for consumers.
• Reduce Credit Card Swipe Fees: Canada should align with other jurisdictions, such as the EU and Australia, in capping credit card interchange fees to reduce the financial strain on retailers, costs that are ultimately borne by all consumers.
• Provide Retail-Specific Incentives for Climate Change Transition: The government should offer rebates, tax credits, and federal grants to support sustainable initiatives, ensuring businesses can remain competitive while meeting environmental commitments.
• Support Retailers’ Shift Away from Single-Use Plastics and Invest in Recycling Infrastructure: Offer financial programs, including grants and investment incentives, to drive research and development in sustainable materials and to foster a circular economy.

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4. Create an Even Playing Field for Canadian Retail to Thrive

Canadian retailers face growing challenges that hinder their ability to compete and succeed. Unequal tax policies, inefficient duty collection processes, and additional digital service taxes place domestic businesses at a disadvantage, making it harder for them to thrive. The digital services tax, in particular, frustrates key trade partners and has led to unwanted trade tensions. To support a strong and competitive retail sector, policymakers must take decisive action to ensure fair taxation, streamline duty collection, and reduce unnecessary financial burdens. Addressing these issues will help strengthen Canadian businesses, support economic growth, and create a more balanced marketplace.

Policy Solutions:

• Ensure foreign online retail platforms comply with all of Canada’s laws: the recent proliferation of foreign online retail platforms has raised many questions surrounding their following of Canada’s domestic laws. When those rules are flouted, Canadian retailers are put at an unfair competitive disadvantage.
• Fairer Duties Collection by CBSA: ensure transparent, fair application of duties by the Canada Border Services Agency (CBSA). This can be achieved by reducing backlogs, better training for CBSA officers, and adopting a “do-no-harm” approach to duties collection.
• Eliminate the Digital Services Tax for Online Retailers: Remove this tax burden that increases operational costs, drives higher consumer prices, and antagonizes Canada’s trading partners, namely, the U.S.

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5. Introduce Programs to Increase Retail Activity in Canada

Canada’s retail sector is a key driver of economic growth, providing millions of jobs and generating significant tax revenue. A strong retail industry supports local businesses, stimulates consumer spending, and contributes to vibrant communities. However, shifting consumer habits, logistical challenges, and slow recovery in tourism-related sales have hindered retail growth. Boosting retail activity is essential not only for business success but also for broader economic stability, as increased sales drive employment, investment, and government revenue. Ensuring a thriving retail sector will help sustain economic momentum and strengthen Canada’s overall financial resilience.

Policy Solutions:

• Strengthen Canada Post’s Package Delivery System: As online shopping grows, Canada Post must improve delivery speed and reliability. Investing in Canada’s national postal service will help small and medium-sized retailers thrive.
• Reintroduce a Visitor Rebate Program: The tourism sector contributed 2% of GDP pre-COVID, but retail sales tied to tourism are still lagging. A new Visitor Rebate Program would encourage spending from international visitors and boost retail activity.

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Where the Parties Stand – Election Platforms

This election cycle saw the major Canadian political parties publish their full policy platforms very late in the campaign. Promises by some parties to cut red tape, address burdensome regulations, and bring an end to the tariff war are welcome developments and key RCC asks. However, populist policies by some targeting the grocery sector is of concern. Here are links to the various parties’ platforms:

Bloc Quebecois →

Conservative Party of Canada →

Green Party of Canada →

Liberal Party of Canada →

New Democratic Party →

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Our Commitment

We are committed to working with policymakers, industry stakeholders, and the public to strengthen Canada’s retail sector. By supporting VOTE RETAIL, you are ensuring that the retail industry remains a key driver of economic prosperity.

RCC sent a letter to the leading political parties addressing the key issues affecting retail in the province. Responses will be listed in order of the current number of seats held.

Join Us. Support our vision for a stronger retail sector. Contact us to learn more, get involved, or share your perspectives.

Get Involved

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