Mark Carney to replace Justin Trudeau as Canada’s prime minister

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Canada’s ruling Liberal party has chosen Mark Carney as its new leader and the country’s prime minister, setting up a face-off between the former central banker and US President Donald Trump. 

The party announced on Sunday that Carney had won the contest to replace Justin Trudeau, who stepped down as leader in January after months of party infighting and poor polling.

“There’s someone who’s trying to weaken our economy: Donald Trump,” Carney said in his victory speech, as he slammed the “unjustified tariffs” imposed by the US president, who has said Canada should become the US’s 51st state.

“He’s attacking Canadian families, workers and businesses and we cannot let him succeed,” added Carney.

The incoming prime minister said his government would find new trading relationships with “reliable partners” and vowed to maintain retaliatory tariffs on the US “until the Americans show us respect”, he said.

In the end, the race for party leadership was not close. Carney won with 131,674 votes, or 86 per cent, ahead of Trudeau’s former finance minister Chrystia Freeland with 11,134.

Carney said the party would pursue fiscal responsibility and social justice while striving to unite Canada. “My pledge to you and all Canadians is to build a stronger Canada for everyone,” he said.

He is expected to immediately replace Trudeau, who was at the Liberal party event on Sunday.

During the campaign, Carney indicated he would call an election shortly after winning the top spot, to secure a mandate from the Canadian people to tackle Trump’s tariffs battle. 

“Carney has an international profile and an undeniable gravitas when it comes to dealing with economic matters, though he has no electoral experience,” said Dimitry Anastakis, a professor in the Rotman School of Management at the University of Toronto.

Trump’s regular attacks on Canada — threatening to annex it and place tariffs on its timber, dairy and steel — have reinvigorated the Liberal party, which had been facing a near-certain election defeat.

Carney said on Sunday that Canada would “never, ever be part of America in any way”, adding: “We must build a new economy and new trading relations.”

Carney campaigned on being a veteran of crisis management best suited to manage Trump’s hostile stance, emphasising his time as Canada’s central bank governor during the 2008 global financial crisis, then Britain’s central bank governor throughout Brexit.

Polls show the Liberal party has narrowed the Conservatives’ lead ahead of this year’s election.

“Two months ago, being Liberal leader was like a dead-end job,” said David Coletto, chief executive of Abacus Data, an Ottawa-based polling company. “Thanks to Trump, Mark Carney will emerge as the next PM with almost a coin toss chance of doing the unthinkable, leading the Liberals to their fourth straight election victory.”

For several years the Conservative party under Pierre Poilievre was expected to easily be able to form a majority government at the next election. But Trump, and Carney as Canada’s prime minister, have altered that trajectory.

An Angus Reid Institute poll reported on Wednesday that 43 per cent of Canadians thought Carney was best to face off against Trump, compared with 34 per cent who chose Poilievre. 

Carney has pledged to “build the strongest economy in the G7” and to “reform government and the tax system” with incentives to build and invest. 

Rumours of Carney’s interest in becoming prime minister intensified late last year as Trudeau’s government floundered in the polls over its policies on immigration, the cost of living and housing affordability.

Carney recently resigned as chair of Brookfield Asset Management, which has close to $1tn in assets under management. He has also been chair of the board of Bloomberg and UN special envoy on climate action and finance and spent more than a decade at Goldman Sachs.

He has vowed to cut all his corporate ties and put his asset portfolios in a trust if he became prime minister.