Mark Carney Succeeds Justin Trudeau: Can His Economic Experience Confront Donald Trump?

Canada's ruling party has elected Mark Carney, 59, as its new leader and prime minister, replacing Justin Trudeau, at a time when the country is facing historic tensions with the U.S. under Donald Trump.

The prime minister-designate must keep Trump's expansionist plans in check and prepare for a fierce economic war, which the US president sees as the best way to force Canada to give up its sovereignty and become the 51st state.

Carney, a former central bank governor, is seen as the most suitable candidate to confront Trump in the escalating economic war between the United States and Canada, especially since he was the first foreign governor of the Bank of England. No one has ever led two central banks from a G7 country other than Carney.

Different Vision

Mark Carney is preparing to assume the position of Canada’s Prime Minister after winning the race for the ruling Liberal Party, succeeding Justin Trudeau, who announced his resignation last January amid a new crisis in Ottawa due to a trade war with the United States, which could paralyze the Canadian economy.

He received 131,674 votes (85.9%) in the party election, while his competitor, former Finance Minister Chrystia Freeland, who came in second, received only 11,134 votes.

This victory represents a qualitative shift in Carney's political career, having proven his leadership capabilities despite his economic background. 

Observers believe that Carney's selection reflects a desire within the party to renew leadership and face upcoming challenges with a different vision.

Carney's ascension to the premiership comes at a sensitive time, as Canada faces escalating trade tensions with the United States, which is threatening to impose new tariffs.

In his victory speech, Carney, who has never held political office, said that Americans want to make Canada the 51st state, emphasizing Canada's need to build a strong economy and establish new trade relations.

He focused on what he described as the unjustified tariffs imposed by Trump on Canada, saying, “Trump is attacking Canadian workers, families, and businesses, and we cannot allow him to succeed.”

He made it clear that his country will maintain retaliatory tariffs against US-made products as long as Trump continues his trade war.

Last week, Trump imposed 25% tariffs on most Canadian goods, then promised to postpone them for a month, then threatened to impose significant new tariffs on Canadian lumber and dairy products.

However, the White House said days ago that Trump had abandoned plans to double tariffs on Canadian steel and aluminum imports to 50% after a Canadian official halted plans to impose a 25% tariff on electricity exports to the U.S.

In response, Canada retaliated by imposing 25% tariffs on $30 billion worth of U.S. goods, and threatened to expand the tariffs to an additional $125 billion, including cars, trucks, steel, and food.

Trump and his advisors have raised other issues that touch on Canada's core sovereignty, including reviewing the border treaty and water-sharing agreements between the two countries.

While Trump and Trudeau's relationship was strained during Trump's first term before deteriorating further in recent weeks, Carney's supporters and advisors hope he can reboot the dynamic with Trump and establish better deals for Canada.

Carney’s Pledges

During the election campaign, Carney presented himself as a balanced politician with the crisis management experience to counter Trump and manage the fallout from a trade war that could tip the economy into recession.

He also pointed to his record of leading Canada through the 2008 financial crisis as Governor of the Bank of Canada and managing Brexit as Governor of the Bank of England.

Separately, Carney, who resigned from his positions as CEO of Brookfield Asset Management Ltd. and Bloomberg to run for party leadership, sent reassuring messages to Canadians about his future approach.

In a clear shift from Trudeau, whose economic policies have tilted the Liberal Party somewhat to the left, Carney pledged to advance major energy projects, liberalize trade within Canada, and diversify the Canadian economy away from dependence on the U.S.

He also pledged to find new markets for Canadian exports and make significant investments in housing and clean energy projects, as well as cancel plans to increase the capital gains tax and abolish the carbon tax on consumers.

In a related context, Newsweek noted that many experts have praised Carney, viewing him as a seasoned leader with extensive experience in crisis management.

“Carney is a great choice for Canada. He will not only be the right Canadian interlocutor with Trump but will add importantly to global leadership generally,” said Jeffrey Sachs, an economist and professor at Columbia University.

A survey by the Angus Reid Institute, released on March 5, found that 43% of Canadians thought Carney was best to face off against Trump, compared with 34% who chose Conservative Leader Pierre Poilievre. 

David McLaughlin, a former senior official in previous Conservative governments, said Carney is benefiting from voters who fret a Canada led by Poilievre would be similar in style to the Trump White House. 

Politico reported that this isn't the first time Carney has had a public spat with Trump.

It was reported that in 2018, when Carney was Governor of the Bank of England, he boldly criticized Trump's tariff policies, arguing that they would harm the global economy.

Strengths and Weaknesses

Liberal Party members are also betting that Carney can convince voters that he is capable of protecting Canadian interests.

This is especially true given that the Liberals' popularity has declined significantly in recent years. Canadians hold them responsible for several problems, particularly rising inflation and the housing crisis.

“I just think he’s a man of the moment,” said Patricia Jeflyn , a Liberal party member from the border city of Windsor, Ontario. “We need someone who’s going to help us strengthen our economy, build us up strong. Obviously, with uncertainty from what’s happening south of the border, you need someone like that.”

Nick Masciantonio , a Liberal Party member from Ottawa, said he believes “Carney can turn the page on an era where we used to trust the Americans completely, and be a leader that can sit across the table and negotiate with force and with an international perspective against Trump.”

Royal Military University of Canada political science professor Stephanie Chouinard said that Carney has succeeded in attracting support through his economic expertise and seriousness.

She noted that he is well-versed in global financial systems and the strengths and weaknesses of the Canadian economy, noting that he has also succeeded in distancing himself from Trudeau and his political positions.

In addition to political and economic tensions with the U.S., the political newcomer will face the daunting task of reuniting his party in preparation for the next election, which is scheduled to be held no later than next October.

The Conservative Party, the Liberal Party's main rival, considers Carney no different from Trudeau, who has led Canada to its current economic and political predicament.

The Conservatives accuse the Liberal Party of trying to trick Canadians into winning a fourth term in government through a cunning ploy to replace a failed leader (Trudeau) with an equally bad one (Carney).