Canada's New Democratic Party leader Jagmeet Singh makes an election campaign announcement in Ottawa on April 3.Patrick Doyle/Reuters
NDP Leader Jagmeet Singh is proposing victory bonds as a way for Canadians to resist the economic impacts of Trump tariffs.
The bonds would be available with five- or 10-year terms and would pay a compounding interest rate of 3.5 per cent, according to the NDP – a quarter-point more than the average five-year GIC offered by major banks.
The funds the bonds would raise would go toward building public infrastructure such as roads, bridges, housing and transit.
Canadians are boycotting American products and cancelling trips to the United States, Mr. Singh said during a news conference Thursday. The victory bonds he is proposing would give them another way to contribute to the fight in the trade war.
“We saw it when there’s a need like during the war, that Canadians invested massively in victory bonds,” he said. “We’re in a similar situation with a trade war, with the threats of Donald Trump. Canadians are really wrapping themselves in the flag and saying, ‘I want to do my part,’ and here’s where Canadians can do their part.”
If held to maturity, the party says a $100 bond would be worth $118.77 in five years or $141.06 in 10, and the interest would be tax-free.
The federal government ended the Canada Savings Bonds program in 2017 because of its declining use and administrative costs. When asked about this, Mr. Singh said Canada is now in a different climate.
The party acknowledges that the cost of the debt victory bonds would raise would be higher than debt raised on the capital market – about $10-million more for every $1-billion. However, Mr. Singh said he would rather pay interest to Canadians instead of banks.
The party pegs the administrative cost of the program at $75-million to $80-million.
For a sense of how much money the proposal could raise, the NDP pointed to Britain’s Green Savings Bonds. That program raises approximately $900-million annually, the party said, has a similar interest rate and is also dedicated to a social cause.