Mark Carney was officially sworn in as Canada’s 24th prime minister on Friday, stepping into office amid a growing trade war with the United States, annexation threats from President Donald Trump, and an impending federal election. Carney, 59, a former central banker with no political experience, replaces Justin Trudeau, who announced his resignation in January but remained in power until the ruling Liberal Party elected a new leader. Carney is widely expected to call a general election in the coming days or weeks.
Carney rejects US annexation talk
In his first remarks as prime minister, Carney strongly rejected Trump’s suggestion that Canada should become the 51st U.S. state.
"We will never, ever, in any way, shape, or form, be part of the United States. America is not Canada. We are fundamentally a different country," Carney declared.
The Liberal Party was bracing for a historic election defeat this year until Trump’s aggressive trade policies and annexation rhetoric sparked a surge in Canadian nationalism. Now, political analysts say Carney and the Liberals may benefit from voter backlash against Trump’s statements.
'We expect respect,' Carney says on US relations
Carney, who previously led the Bank of Canada during the 2008 financial crisis and later became the first noncitizen to head the Bank of England, will now have to navigate Canada through escalating economic tensions with the U.S.
Trump has imposed 25 per cent tariffs on Canadian steel and aluminum and has threatened sweeping tariffs on all Canadian products starting April 2. The U.S. president has also questioned the legitimacy of the Canada-US border.
While Carney said he is open to talks with Trump, he made it clear that any negotiations would be based on mutual respect.
“The president is a successful businessman and deal maker. We’re his largest client in so many industries,” Carney said. “Clients expect respect and working together in a proper commercial way.”
Carney does not plan to visit Washington immediately but hopes to have a phone conversation with Trump soon.
Election expected to focus on US-Canada relations
The upcoming Canadian federal election, expected within weeks, is now likely to revolve around who can best handle relations with the U.S. rather than domestic economic issues.
The opposition Conservative Party had initially sought to make the election a referendum on Trudeau’s leadership, rising housing prices, and increased immigration. However, the trade war and annexation rhetoric have shifted the focus to Canada’s sovereignty and economic stability.
Former Prime Minister Jean Chrétien expressed confidence in Carney’s abilities but acknowledged the challenges of dealing with Trump.
“He will do very well. He’s respected internationally,” Chrétien said. “But this is not a normal situation. We’ve never seen a U.S. president change his mind every five minutes. It creates problems everywhere, not just in Canada.”
Canadian nationalism on the rise
Trump’s annexation comments and trade war threats have led to a spike in anti-American sentiment across Canada.
- Canadian fans have booed the US national anthem at NHL and NBA games.
- Travelers are canceling trips to the U.S.
- Consumers are boycotting American goods when possible.
This surge in nationalism appears to be boosting the Liberal Party’s standing in opinion polls after months of decline under Trudeau.
Carney to strengthen trade ties with Europe
In response to Trump’s trade war, Carney has emphasized the need to diversify Canada’s economic partnerships.
“We must diversify our trade partners and strengthen our security in so doing,” Carney said.
His first international trip as prime minister will be to Europe, where he will meet with French President Emmanuel Macron and U.K. Prime Minister Keir Starmer to discuss trade and security partnerships.
New cabinet sworn in
Carney introduced a leaner Cabinet than Trudeau’s, with 24 ministers compared to 37 in the previous administration.
- Francois-Philippe Champagne has been appointed finance minister, moving from his previous role as industry minister.
- Dominic LeBlanc shifts from finance minister to intergovernmental affairs minister.
- Melanie Joly remains foreign minister.
- Chrystia Freeland, a former deputy prime minister and finance minister, has been assigned the role of minister of transport and internal trade.
With Trump’s trade war escalating and an election on the horizon, Carney’s first weeks in office are expected to be crucial in shaping Canada’s economic and political future.