Mark Carney sworn in as Canada’s new Prime Minister as country deals with Trump’s trade war

Mr. Carney has said he’s ready to meet with Trump if he shows “respect for Canadian sovereignty″ and is willing to take ”a common approach, a much more comprehensive approach for trade.″

Former central banker Mark Carney was sworn in as Canada’s new Prime Minister on Friday (March 14, 2025), and will now try to steer his country through a trade war brought by U.S. President Donald Trump, a threat of annexation and an expected federal election.

Mr. Carney, 59, replaces Prime Minister Justin Trudeau, who announced his resignation in January but remained in power until the Liberal Party elected a new leader. Mr. Carney is widely expected to trigger a general election in the coming days or weeks.

“We will never, ever, in any way shape or form, be part of the United States. America is not Canada,” Mr. Carney said. “We are very fundamentally a different country.”

The governing Liberal Party had appeared poised for a historic election defeat this year until Mr.Trump declared economic war and threatened to annex the entire country as a 51st state. Now the party and its new leader could come out on top.

Mr. Carney has said he’s ready to meet with Mr. Trump if he shows “respect for Canadian sovereignty”. He said he doesn’t plan to visit Washington at the moment but hopes to have a phone call with the President soon.

“The President is a successful businessman and deal maker. We’re his largest client in so many industries,” Mr. Carney said. “Clients expect respect and working together in a proper commercial way.”

Carney navigated crises when he was the head of the Bank of Canada during the 2008 financial crisis, and then in 2013 when he became the first noncitizen to run the Bank of England — helping to manage the worst impacts of Brexit in the U.K.

Mr. Carney, a former Goldman Sachs executive with no experience in politics, becomes Canada’s 24th Prime Minister. He said protecting Canadian workers and their families in the face of unjustified trade actions and growing the economy will be his top priorities.

Mr. Carney said he will travel to Europe to visit French President Emmanuel Macron and U.K. Prime Minister Keir Starmer in the coming days. He received invitations from both.

“We must diversify our trade partners and strengthen our security in so doing,” Mr. Carney said.

Mr. Trump put 25% tariffs on Canada’s steel and aluminum and is threatening sweeping tariffs on all Canadian products April 2. He has threatened economic coercion in his annexation threats and suggested the border is a fictional line.

Mr. Carney called the idea “crazy.”

The U.S. trade war and Mr. Trump’s talk of making Canada the 51st U.S. state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.

Mr. Carney said he’s worked with Trump before at G7 and G20 summits during Mr. Trump’s first presidency.

“We share some experiences. I have been in the private sector. I have worked in the real estate sector. I have done large transactions,” Mr. Carney said. “We will both be looking out for our countries but he knows, and I know from long experience, that we can find mutual solutions that win for both.”

The opposition Conservatives hoped to make the election about Mr. Trudeau, whose popularity declined as food and housing prices rose and immigration surge.

But after decades of bilateral stability, the vote on Canada’s next leader now is expected to focus on who is best equipped to deal with the U.S.

“He will do very well. He’s respected internationally,” former Prime Minister Jean Chrétien told reporters Friday (March 14, 2025). But, he added: “There is no magic solution. This is not a normal situation. We’ve never seen someone who changes his mind every five minutes as president of the United States.”

A new Cabinet of 13 men and 11 women was sworn in, smaller than Mr. Trudeau’s 37-member team. François-Philippe Champagne becomes Canada’s new Finance Minister, the government’s second most powerful position. Champagne has said a new prime minister offers a chance of a reset with Mr. Trump.

Dominic LeBlanc goes from finance to to intergovernmental affairs. Mélanie Joly remains Foreign Minister. Chrystia Freeland, a former deputy Prime Minister and Finance Minister who lost to Carney in the Liberal Party leadership race, becomes minister of transport and internal trade.

Mr. Carney met his Cabinet and eliminated a consumer carbon price on his first day, undoing Mr. Trudeau’s signature climate policy. He called his government “Canada’s new government” in an effort to distance himself from Mr. Trudeau.

Mr. Carney also took aim at Opposition Conservative leader Pierre Poilievre, a career politician who Mr. Carney said is always negative.

“Negativity won’t pay the rent or the mortgage. Negativity won’t bring down the price of groceries. Negativity won’t win a trade war,” he said.

Mr. Poilievre urged Canadians not to give the Liberals a fourth mandate, saying it’s the same Liberal government and that Mr. Carney is “just like Justin.”

Published - March 14, 2025 09:24 pm IST