Formal central banker Mark Carney was sworn in as Canada’s new Prime Minister on Friday, taking office during a time of heightened tensions with the U.S. over trade disputes, annexation threats and the looming prospect of a federal election.
At 59, Carney replaces Prime Minister Justin Trudeau, who resigned in January but remained in power until the Liberal Party elected a new leader. Carney is expected to call a general election soon.
“We will never, ever, in any way shape or form, be part of the United States. America is not Canada,” Carney declared, emphasizing the country’s distinct national identity. “We are very fundamentally a different country.”
The governing Liberal Party, once predicted to face a historic election defeat, has gained new momentum following U.S. President Donald Trump’s economic threats and repeated calls for Canada to join the U.S. as the 51st state. Carney has indicated he is open to meeting with Trump, provided there is mutual respect for Canadian sovereignty. While he does not plan to visit Washington immediately, Carney hopes for a phone call with the U.S. president soon.
“The president is a successful businessman and dealmaker. We’re his largest client in so many industries,” Carney said. “Clients expect respect and working together in a proper commercial way.”
Carney, who previously navigated economic crises as head of the Bank of Canada during the 2008 financial crisis and later managed the fallout of Brexit as Governor of the Bank of England, becomes Canada’s 24th prime minister. Despite having no political experience, Carney is well-regarded for his expertise in economic matters. His primary focus, he said, will be to protect Canadian workers and families from unjust trade actions while promoting economic growth.
In the coming days, Carney plans to travel to Europe to meet French President Emmanuel Macron and U.K. Prime Minister Keir Starmer, both of whom have extended invitations. “We must diversify our trade partners and strengthen our security in doing so,” Carney said.
The relationship between Canada and the U.S. has soured under Trump, who imposed 25% tariffs on Canadian steel and aluminum and is threatening further tariffs on all Canadian products by April 2. Trump has also hinted at economic coercion and suggested that the U.S.-Canada border is a “fictional line.” Carney dismissed the idea, calling it “crazy.”
The ongoing trade war and Trump’s comments about making Canada the 51st state have fueled public outrage in Canada, with protests including boos of the U.S. national anthem at NHL and NBA games and Canadians boycotting American products.
Carney, who has worked with Trump at G7 and G20 summits, said, “We share some experiences. I have been in the private sector. I have worked in the real estate sector. I have done large transactions. 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.”
While the opposition Conservatives had hoped to frame the upcoming election around Trudeau’s declining popularity, which was affected by rising food and housing prices and a surge in immigration, the focus is now expected to shift to Carney’s ability to manage relations with the U.S.
Former Prime Minister Jean Chrétien expressed confidence in Carney’s leadership, noting that he is respected internationally, but warned, “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.”
Carney’s new Cabinet includes 13 men and 11 women, a smaller team than Trudeau’s previous 37-member cabinet. François-Philippe Champagne, who takes on the key role of finance minister, has expressed hope that Carney’s leadership will offer a fresh start in relations with Trump. Other key appointments include Dominic LeBlanc, who moves to intergovernmental affairs, and Mélanie Joly, who remains foreign minister. Chrystia Freeland, who lost to Carney in the Liberal Party leadership race, becomes the minister of transport and internal trade.
