- Mark Carney wins the race to lead Canada’s Liberal Party and becomes prime minister.
- He succeeds Justin Trudeau, who stepped down after nine years in power.
- Canada faces an escalating trade war with the United States under President Donald Trump.
- Carney vows to defend Canadian businesses and maintain retaliatory tariffs.
- Elections are expected soon as the political landscape remains uncertain.
Mark Carney has been elected as the new leader of Canada’s ruling Liberal Party, officially succeeding Justin Trudeau as the country’s prime minister. The results, announced on Sunday, confirmed Carney’s victory with 86% of the votes, defeating former Finance Minister Chrystia Freeland. Nearly 152,000 party members participated in the vote.
Carney, 59, enters office at a critical time. Canada is entangled in a trade dispute with its longtime ally, the United States, under President Donald Trump. The political and economic uncertainty has placed significant pressure on the newly appointed leader.
Challenges Await Carney in Office
Carney assumes power amid rising tensions with the US Trump’s administration has imposed aggressive tariffs on Canadian exports, leading to retaliatory measures from Canada. Trudeau previously introduced C$30 billion in tariffs, and Carney has vowed to keep them in place until the US government adopts a more cooperative stance.
“There’s someone trying to weaken our economy,” Carney said in a speech, referring to Trump. “He’s attacking Canadian workers, families, and businesses. We can’t let him succeed.”
Beyond trade disputes, Canada faces domestic political challenges. Trudeau’s departure followed a sharp decline in public approval, leading to an urgent leadership contest. Although the Liberal Party has regained some support under Carney, polls indicate a tight race with the opposition Conservatives, led by Pierre Poilievre.
An Unconventional Leader with Global Experience
Unlike most prime ministers, Carney has no prior political experience. However, his extensive economic background makes him a unique candidate. He previously served as the governor of both the Bank of Canada and the Bank of England, a first in G7 history. His leadership in these roles was widely praised for stabilizing economies during financial crises.
Carney has positioned himself as the right person to negotiate with Trump and to strengthen Canada’s economy. He believes his expertise in global financial systems gives him an advantage in securing better trade agreements.
“We will have to do things that we haven’t imagined before, at speeds we didn’t think possible,” he stated during his victory speech.
Upcoming Election Looms Over Political Landscape
Despite his recent victory, Carney’s leadership will be tested in an upcoming general election. By law, Canada must hold elections by October 20, but many speculate that Carney may call for an earlier vote.
Two senior Liberal sources suggest that an election could take place in the coming weeks. If so, Carney will have limited time to consolidate his leadership and rally support.
“Make no mistake, this is a nation-defining moment,” Trudeau said in his farewell speech. “Democracy is not a given. Freedom is not a given. Even Canada is not a given.”
Carney, who currently lacks a seat in the House of Commons, is expected to run in a by-election soon. While he can legally serve as prime minister without a seat, tradition dictates that he should secure one at the earliest opportunity.
Growing Support Amid Political Rivalries
Despite his political inexperience, Carney has garnered growing support, partly due to Trump’s aggressive policies. The Liberal Party, once trailing by over 20 points at the start of 2025, is now nearly tied with the Conservatives in several polls. This shift suggests a “rally-around-the-flag” effect, as many Canadians unite in opposition to Trump’s trade war.
University of British Columbia politics professor Richard Johnston notes this change in public sentiment. “There is a rallying-around-the-flag moment that we would never have predicted a year ago,” he said. “I think it’s probably true as we speak that the Liberals have been saved from oblivion.”
However, opposition leader Poilievre has ramped up attacks on Carney, comparing him to Trudeau in recent advertisements. The Conservatives aim to capitalize on voter dissatisfaction and present themselves as an alternative for economic stability.
A Global Economist with Strong Ties to Canada
Carney’s background sets him apart from typical politicians. Born in Fort Smith, Northwest Territories, he grew up in a modest household before earning a scholarship to Harvard University. He later obtained a PhD in economics from Oxford.
His career took him around the world, from Wall Street to the highest ranks of central banking. As the Bank of Canada’s governor, he helped steer the country through the Great Recession. His tenure at the Bank of England saw significant reforms, including increased transparency in monetary policy decisions.
Carney also served as chair of the Financial Stability Board from 2011 to 2018, coordinating international financial regulations. In recent years, he has been a vocal advocate for climate change policies, launching the Glasgow Financial Alliance for Net Zero in 2021.
A Defining Moment for Canada
Mark Carney’s leadership marks a significant shift in Canadian politics. As a financial expert rather than a career politician, he faces the dual challenge of navigating trade disputes and uniting his party ahead of a crucial election.
As Trump increases tensions and more people oppose him at home, Carney will have to handle crises in the coming months. It is unclear if his experience in global finance will help him become a good political leader. However, his rise to power signals a fresh chapter in Canada’s political landscape.