Mark Carney has been chosen as the new leader of Canada's Liberal Party, after a dramatic and high-stakes race to replace Justin Trudeau. His immediate task: to steer the party into the upcoming federal elections, which must take place before October, though they could be called at any moment. The road ahead looks tough, with the Conservative Party, currently leading in the polls, waiting in the wings.
While Carney steps into his new role right away, Trudeau will remain as prime minister for an undisclosed transition period, ensuring a smooth handover of power. But Carney’s biggest challenge may lie in his dealings with the United States, where tensions have reached a boiling point.
US President Donald Trump has repeatedly attacked Canada, blaming it for illegal immigration, threatening to make it the 51st state, and imposing harsh tariffs on Canadian goods—claims the White House says are necessary to combat the fentanyl crisis.
In his first speech as Liberal leader, Carney addressed these tensions head-on. He promised to seek out new trading relationships with reliable partners, adding that retaliatory tariffs on the US would remain in place until America shows Canada the respect it deserves.
"New threats demand new ideas and a new plan," Carney declared to a cheering Liberal Party convention. "We can’t let Trump succeed in attacking our families, workers, and businesses. And we won’t."
The mood in Canada has become increasingly charged, with even sports fans showing their frustration by booing the US national anthem at hockey and basketball games.
Carney now faces off against Pierre Poilievre, the Conservative leader who has distanced himself from Trump despite early comparisons. At a rally just before the Liberal leadership vote, Poilievre accused Carney—who served as governor of the Bank of England and Bank of Canada—of weakening Canada and enriching the United States.
Carney wasted no time in responding. “Trump wants to divide us. Poilievre’s plan will leave us vulnerable to being conquered,” he fired back.
As the election season heats up, the Conservatives' lead has narrowed, thanks in part to the strong stances taken by Trudeau, Carney, and other Liberals on the trade conflict with the US.
Trudeau, who has led the Liberals for over a decade, took the party to power in 2015 with a promise of “sunny ways” but saw his influence wane as crises mounted, economic discontent grew, and his deputy prime minister, Chrystia Freeland, unexpectedly resigned.
In what would be some of his final remarks as leader, Trudeau warned Canadians of an “existential challenge” from their southern neighbor. “This is a nation-defining moment,” he said. “And Canadians are showing exactly what we are made of.”
Carney, who previously served as UN Special Envoy for Climate Action and Finance, has made clean energy, climate action, and economic growth central themes of his campaign. He has proposed shifting the burden of carbon taxes away from consumers and onto corporations, and wants to turn Canada into a clean energy powerhouse. Drawing on his experience navigating the financial crises of 2008 and Brexit, Carney has focused on how Canada’s natural resources—especially critical minerals—can boost the economy and help the nation stay competitive in a low-carbon world.
As for his approach to the Trump administration, Carney has not held back. In the face of US tariffs, he has been outspoken in his support of dollar-for-dollar retaliatory measures. He’s called the US accusations of fentanyl trafficking from Canada “insulting,” emphasizing that Canada is a proud, independent nation that will not tolerate disrespect.