Canada's next prime minister managed the financial crisis, then Brexit
and now Trump's trade war
[March 10, 2025]
By ROB GILLIES
TORONTO (AP) — Canada’s next prime minister has helped run two Group of
Seven economies in crisis before and now will try to steer Canada
through a looming trade war brought by U.S. President Donald Trump, a
threat of annexation and an expected federal election.
Former central banker Mark Carney will become prime minister after the
governing Liberal Party elected him its leader Sunday in a landside vote
with 85.9% support.
Carney, 59, replaces Prime Minister Justin Trudeau, who announced his
resignation in January but remains prime minister until his successor is
sworn in in the coming days. Carney is widely expected to trigger an
election the coming days or weeks amid Trump’s sweeping tariff threats.
Canada ‘didn’t ask for this fight'
“We didn’t ask for this fight. But Canadians are always ready when
someone else drops the gloves,” Carney said. “The Americans, they should
make no mistake, in trade, as in hockey, Canada will win.”
Carney said Canada will keep its initial retaliatory tariffs in place
until “the Americans show us respect.”
Carney navigated crises when he was the head of the Bank of Canada and
when in 2013 he became the first noncitizen to run the Bank of England
since it was founded in 1694. His appointment won bipartisan praise in
the U.K. after Canada recovered from the 2008 financial crisis faster
than many other countries. He helped managed the worst impacts of Brexit
in the U.K.
The opposition Conservatives hoped to make the election about Trudeau,
whose popularity declined as food and housing prices rose and
immigration surged.
Trump’s trade war and his 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.
Canadian nationalism surges
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.
“The Americans want our resources, our water, our land, our country.
Think about it. If they succeed they would destroy our way of life,”
Carney said. “In America health care is big business. In Canada it is a
right.”
Carney said America is “a melting pot. Canada is mosaic,” he said.
“America is not Canada. And Canada will never, ever will be a part of
America in any way, shape or form.”
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 United
States.
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Liberal Party of Canada Leader Mark Carney, center right, speaks to
Canada's Prime Minister Justin Trudeau after Carney was announced as
the winner of the party leadership at the announcement event in
Ottawa, Ontario, Sunday, March 9, 2025. (Sean Kilpatrick/The
Canadian Press via AP)
“These are dark days, dark days brought on by a country we can no
longer trust,” Carney said. “We need to pull together in the tough
days ahead.”
Trump has postponed 25% tariffs on many goods from Canada and Mexico
for a month, amid widespread fears of a broader trade war. But he
has threatened other tariffs on steel, aluminum, dairy and other
products.
Carney picked up one endorsement after another from Cabinet
ministers and members of Parliament since declaring his candidacy in
January. He is a highly educated economist with Wall Street
experience who has long been interested in entering politics and
becoming prime minister, but he lacks political experience.
Trudeau previously offered to make him finance minister. Carney has
said former Conservative Prime Minister Stephen Harper also offered
to make him finance minister.
Former Goldman Sachs executive
Carney is a former Goldman Sachs executive. He worked for 13 years
in London, Tokyo, New York and Toronto, before being appointed
deputy governor of the Bank of Canada in 2003.
In 2020, he began serving as the United Nations’ special envoy for
climate action and finance.
The other top Liberal leadership candidate was former Deputy Prime
Minister Chrystia Freeland, who received just 8% of the vote.
Trudeau told Freeland in December that he no longer wanted her as
finance minister, but that she could remain deputy prime minister
and the point person for U.S.-Canada relations. Freeland resigned
shortly after, releasing a scathing letter about the government that
proved to be the last straw for Trudeau.
Either Carney will call an election in the coming days or weeks, or
the opposition parties in Parliament could force one with a
no-confidence vote later this month.
Trudeau urged Liberals supporters to get involved.
“This is a nation-defining moment. Democracy is not a given. Freedom
is not a given. Even Canada is not a given,” Trudeau said.
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