Freeland says she’s abandoning capital gains tax change because of Trump

By The Canadian Press on January 23, 2025.

Liberal MP Chrystia Freeland, candidate for leader of the Liberal Party of Canada, makes her way a meeting of the Liberal caucus with Minister of International Development Ahmed Hussen, left, and Minister of Justice Arif Virani, right, in West Block on Parliament Hill in Ottawa, on Thursday, Jan. 23, 2025. THE CANADIAN PRESS/Justin Tang

OTTAWA – Former finance minister Chrystia Freeland says her promise to repeal changes to the capital gains tax was made in response to Donald Trump’s election in the United States.

Freeland is running to be the next leader of the Liberal party and the next prime minister.

She was responding to reports earlier this week that said she’d reverse the capital gains changes she’d once endorsed if she wins the leadership.

Freeland told reporters in French that her experience renegotiating NAFTA taught her the Trump administration aims to create uncertainty in the world in order to attract investment to the United States.

She said that in light of that threat, Canada needs to change its own policies to respond in the event Trump relaxes capital gains laws in the United States.

The Biden administration had proposed increases to capital gains for 2025.

This report by The Canadian Press was first published Jan. 23, 2025

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