Canada Elections: Prime Minister Carney's Liberal Party to lead fourth consecutive government

Canada's Liberal Party is projected to win the country's federal election for the fourth consecutive time.

The Liberals, led by Canadian Prime Minister Mark Carney, who took over after Justin Trudeau resigned earlier this year, won the election in a shocking turnaround sparked by U.S. President Donald Trump's threats of annexation and his tariffs on America's close ally and northern neighbor.

As of late Monday, the Liberal Party was leading with 161 seats won in Parliament as opposed to the 150 seats held by the Conservative Party. A party needs to win 172 of Parliament’s 343 seats to hold the majority.

Carney won his Ottawa riding on Monday. He is the first prime minister to represent a capital riding since Canada's first prime minister, John A. Macdonald. Former Liberal deputy prime minister and finance minister Chrystia Freeland, whose resignation last December led to Trudeau announcing his plans to resign in January, won re-election in her Toronto riding.

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The Liberals were projected to win more seats than the Conservatives when polls closed, although it was not immediately clear if they would secure an outright majority, which would allow them to advance legislation without needing votes from the minority.

The majority party appeared to be giving up control when Trump started a trade war with Canada and suggested the country should become a U.S. state. Trump’s moves infuriated Canadians and led to a surge in nationalism that aided the Liberals in flipping earlier election projections to retain power.

"We were dead and buried in December. Now we are going to form a government," David Lametti, a former Liberal Justice Minister, told CTV.

"We have turned this around thanks to Mark," he added.

The Conservative Party's leader, Pierre Poilievre, sought to make the election a referendum on Trudeau, whose popularity dropped before he ultimately stepped down in January.

In Trudeau's final months, Trump repeatedly referred to him as Canada's governor amid continued comments about turning the country into America's 51st state. After Trudeau resigned, Carney, a two-time central banker, became prime minister and the Liberal Party’s leader.

Trump even suggested on election day that he was on the ballot and again said Canada should become the 51st state. He also incorrectly claimed that the U.S. subsidizes Canada.

"Good luck to the Great people of Canada," Trump wrote on Truth Social. "Elect the man who has the strength and wisdom to cut your taxes in half, increase your military power, for free, to the highest level in the World, have your Car, Steel, Aluminum, Lumber, Energy, and all other businesses, QUADRUPLE in size, WITH ZERO TARIFFS OR TAXES, if Canada becomes the cherished 51st. State of the United States of America."

"No more artificially drawn line from many years ago," he continued. "Look how beautiful this land mass would be. Free access with NO BORDER. ALL POSITIVES WITH NO NEGATIVES. IT WAS MEANT TO BE! America can no longer subsidize Canada with the Hundreds of Billions of Dollars a year that we have been spending in the past. It makes no sense unless Canada is a State!"

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Poilievre responded to Trump, urging him not to attempt to influence Canada's elections.

"President Trump, stay out of our election. The only people who will decide the future of Canada are Canadians at the ballot box," he wrote on X. "Canada will always be proud, sovereign and independent and we will NEVER be the 51st state. Today, Canadians can vote for change so we can strengthen our country and stand up to the United States."

Trump’s attacks have frustrated many Canadians, leading many to cancel U.S. vacations, refuse to buy American goods and possibly even vote early. A record 7.3 million Canadians cast ballots ahead of election day.

"The Americans want to break us so they can own us," Carney said before the election. "Those aren't just words. That's what's at risk."

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Carney and the Liberals made history by securing the party's fourth consecutive term, but there are challenges ahead.

In addition to the sweeping U.S. tariffs on Canadian goods, Canada has been facing a cost-of-living crisis.

More than 75% of Canada's exports go to the U.S., so Trump's tariffs threat and wish for North American automakers to move Canada's production to the U.S. could severely hurt the country's economy.

On the campaign trail, Carney promised that every dollar the government collects from counter-tariffs on U.S. goods will go toward Canadian workers adversely affected by the trade war.

Fox News' Tessa Hoyos and The Associated Press contributed to this report.