Mark Carney becomes Canada’s Prime Minister as trade war with Trump heats up

Ottawa, Canada – Former Bank of England and Canada Governor, Mark Carney, has been elected as the new leader of the Liberal Party and Prime Minister of Canada, setting the stage for a high-stakes showdown with U.S. President Donald Trump over trade and diplomatic relations.

On Sunday afternoon, the Liberal Party of Canada announced that Carney secured a decisive victory, winning 86% of the votes (131,674) against his closest competitor, former Finance Minister Chrystia Freeland, who garnered 11,134 votes. Carney replaces Justin Trudeau, who stepped down in January after internal party divisions and declining public support.

Who is Mark Carney?

Carney, 59, is widely recognized for his economic expertise and crisis management skills, having played a key role in stabilizing global markets during the 2008 financial crisis and managing the economic fallout of Brexit. Despite his lack of electoral experience, he is now tasked with leading Canada through one of its most challenging economic and political periods in decades.

“My pledge to all Canadians is to build a stronger, more prosperous, and more united Canada,” Carney said in his victory speech.

He has vowed to eliminate the carbon tax and capital gains tax, prioritize fiscal responsibility and social justice, and establish new trade relationships with reliable partners in response to Trump’s threats of tariffs and economic pressure on Canada.

Carney’s leadership comes at a time when Canada’s relationship with its largest trading partner, the U.S., is under immense strain. Trump has repeatedly threatened to impose sweeping tariffs on Canadian imports, particularly on lumber, dairy, and steel, while controversially suggesting that Canada should become the 51st U.S. state.

“My government will keep the tariffs in place until the Americans show us respect,” Carney declared, signaling a tough stance on negotiations with Washington.

During his campaign, he criticized Trudeau’s handling of trade relations and vowed to seek new economic alliances to reduce Canada’s dependence on the U.S.

Carney’s election marks a turning point for the Liberal Party, which has struggled in the polls amid criticism of Trudeau’s economic policies, immigration strategy, and cost-of-living crisis.

“Two months ago, being Liberal leader was seen as a political dead-end job. Thanks to Trump’s hostility, Carney now has a serious chance of leading the Liberals to an unprecedented fourth consecutive election victory,” said David Coletto, CEO of Ottawa-based polling firm Abacus Data.

Despite stepping down, Trudeau remains a central figure in the party. Addressing supporters at the Liberal Party event, he acknowledged the challenges facing Canada under Trump’s presidency:

“We are a country that chooses diplomacy when we can, but fights when we must,” he said, drawing applause from the crowd.

Trudeau will be remembered for key policy achievements such as marijuana legalization, a strong COVID-19 response, and the expansion of Canada’s social safety net, including the Canada Child Benefit and dental care programs. However, his immigration policies, inflation handling, and the federal carbon tax have drawn significant public criticism.

Carney’s victory is expected to reshape the political landscape in Canada, as he is expected to call for an early election to secure a stronger mandate. His main opponent, Conservative leader Pierre Poilievre, was previously seen as a frontrunner for Canada’s next prime minister, but polling now suggests that Carney could narrow the gap.

A recent Angus Reid Institute poll found that 43% of Canadians believe Carney is best suited to face off against Trump, compared to 34% supporting Poilievre.

If Carney successfully navigates trade tensions with Trump, strengthens Canada’s economic resilience, and unites the Liberal Party, he may defy expectations and secure a historic fourth-term victory for the Liberals.

As Canada enters this new political era, all eyes will be on how Carney balances diplomacy, economic policy, and national unity in the face of mounting U.S. pressure.