Former central banker Mark Carney was sworn in as Canada's new prime minister on Friday, March 14. He will now try to steer his country through a trade war brought by US President Donald Trump, a threat of annexation and an expected federal election.
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. Carney is widely expected to trigger a general election in the coming days or weeks.
The governing Liberal Party had appeared poised for a historic election defeat this year until 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.
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."
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.
The US trade war and Trump's talk of making Canada the 51st US state have infuriated Canadians. Some are canceling trips south of the border, and many are avoiding buying American goods when they can. The surge in Canadian nationalism has bolstered the Liberal Party's chances in a parliamentary election expected within days or weeks, and Liberal showings have been improving in opinion polls.
Carney, who navigated crises when he was the head of the Bank of Canada from 2008, 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 United Kingdom – will now try to steer Canada through the trade war brought by Trump.
Carney, a former Goldman Sachs executive with no experience in politics, becomes Canada's 24th prime minister.