Former central banker Mark Carney was sworn in as Canada’s new prime minister on Friday, and will now try to steer his country through a trade war brought by U.S. President Donald Trump, annexation threats 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.
“We will never, ever, in any way shape or form, be part of the United States. America is not Canada,” Carney said. “We are very fundamentally a different country.”
The governing Liberal Party had appeared poised for a historic election defeat this year until Trump declared economic war and repeatedly has said Canada should become the 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. He said he doesn’t plan to visit Washington at the moment but hopes to have a phone call with the president soon.
“The president is a successful businessman and deal maker. We’re his largest client in so many industries,” Carney said. “Clients expect respect and working together in a proper commercial way.”
Carney navigated crises when he was the head of the Bank of Canada during the 2008 financial crisis, 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 U.K.
Carney, a former Goldman Sachs executive with no experience in politics, becomes Canada’s 24th prime minister. He said protecting Canadian workers and their families in the face of unjustified trade actions and growing the economy will be his top priorities.
Carney said he will travel to Europe to visit French President Emmanuel Macron and U.K. Prime Minister Keir Starmer in the coming days. He received invitations from both.
“We must diversify our trade partners and strengthen our security in so doing,” Carney said.
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.
Carney called the idea “crazy.”
The U.S. trade war and Trump’s 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.
Carney said he’s worked with Trump before at G7 and G20 summits during Trump’s first presidency.
“We share some experiences. I have been in the private sector. I have worked in the real estate sector. I have done large transactions,” Carney said. “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.”
The opposition Conservatives hoped to make the election about Trudeau, whose popularity declined as food and housing prices rose and immigration surge.
But 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 U.S.
“He will do very well. He’s respected internationally,” former Prime Minister Jean Chrétien told reporters Friday. But, he added: “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.”
