Mark Carney, the former central banker who managed financial crises in North America and the UK, is set to become Canada’s next prime minister after securing victory in the Liberal Party leadership race.
At 59, Carney takes office amid a worsening trade war with the US, Canada’s closest ally and largest trading partner. Last week, Donald Trump imposed a 25% tariff on all Canadian goods, excluding the automotive and energy sectors. The move threatens to push Canada’s already fragile economy into recession.
“America is not Canada. And Canada will never, under any circumstances, be part of America,” Carney told supporters, highlighting a crisis that has outraged Canadians, strained US-Canada relations, and is expected to define his time as prime minister.
“We didn’t choose this fight, but Canadians never back down,” he added. “Americans should know that, in trade—just like in hockey—Canada will come out on top.”
Before Carney’s win was announced, outgoing Prime Minister Justin Trudeau energized the crowd, expressing pride in his government’s legacy. However, he also warned of a critical moment for the country. “This is a defining period. Democracy, freedom, even Canada itself, cannot be taken for granted,” he said. He also invoked the “elbows up” hockey slogan—popularized in response to Trump’s threats to annex Canada—drawing loud applause.
The timeline for Carney’s transition into office remains uncertain. He and Trudeau are expected to discuss the latter’s departure in the coming days.
Carney secured a landslide victory with 85.9% of the vote, defeating former finance minister Chrystia Freeland, ex-government house leader Karina Gould, and former MP Frank Baylis. His path to power is unusual, as he will be only the second Canadian prime minister to take office without holding a seat in Parliament. While not prohibited, tradition suggests he will soon announce a federal run.
Additionally, Carney will be the first Liberal prime minister from Western Canada—an important distinction in a country with strong regional political divides. Despite his deep ties to the Liberal Party, including advising Trudeau on economic matters, Carney positioned himself as an outsider throughout his campaign.
His decisive win, bolstered by strong fundraising and endorsements from senior cabinet members, has reinvigorated the Liberals. In recent weeks, the party has rebounded in the polls, erasing what once seemed like a certain Conservative majority in the next election. The surge has been so dramatic that analysts struggle to find historical precedent.
A leaked memo from the left-wing New Democratic Party suggested Carney might call a snap election immediately after his leadership win, leveraging his rising popularity and denying opposition parties the opportunity to bring down the government through a non-confidence vote.
Carney’s economic background makes him the most trusted leader to handle the escalating trade conflict with the US. “My government will keep the tariffs in place until the Americans show us respect,” he declared.
He also took aim at Conservative leader Pierre Poilievre, the current election frontrunner, calling him a “career politician” running a divisive campaign. “You can’t win a trade war with division,” Carney asserted.
However, his transition from finance to politics hasn’t been without missteps. His involvement with Brookfield Asset Management, which relocated from Toronto to New York, has been controversial given US pressures on Canadian businesses to move south.
Ahead of the leadership announcement, former Prime Minister Jean Chrétien remarked that Trump had inadvertently united Canadians “like never before” and jokingly suggested the US president deserved the nation’s highest honor.
“From one old man to another—enough with this nonsense. Canada will never be part of the United States,” Chrétien said to raucous cheers. “No one can force us into submission. Canada is, and will always be, the greatest country in the world. Vive le Canada!”
