Carney sworn in as Canada faces deteriorating US relations
Canada's Prime Minister designate Mark Carney
prepares for his swearing in ceremony at Rideau Hall in Ottawa, Canada on March 14, 2025. (AFP Photo)
Mark Carney was sworn in as Canada’s 24th prime minister on Friday, stepping into leadership as the nation faces a deteriorating relationship with the United States following President Donald Trump’s return to office.
The Liberal Party rallied behind Carney, a former central banker, to replace Justin Trudeau in hopes that his economic crisis management experience will steady the country amid threats of an escalating trade war.
“We’re going to get right to work,” Carney told reporters before taking the oath of office, announcing plans for an immediate cabinet meeting following the ceremony.
Diplomatic sources confirmed to AFP that Carney will make his first international trip as prime minister to Europe next week.
The 59-year-old former Goldman Sachs investment banker enters politics without prior electoral experience, but his leadership will quickly be tested with a general election expected within weeks.
US-Canada relations in crisis
Relations with the United States have become increasingly strained under Trump, who has imposed sweeping import tariffs on Canadian goods and suggested Canada is not “viable” independently, going so far as to suggest annexation by the United States.
Carney has characterized Trump’s stance as “the most serious challenge Canada has faced in a generation.”
“Everything in my life has prepared me for this moment,” Carney said Sunday after winning the Liberal Party leadership race, drawing on his experience guiding the Bank of Canada through the 2008-2009 financial crisis and the Bank of England during Brexit.
At a G7 meeting in Quebec, Foreign Minister Melanie Joly, who will retain her position in Carney’s slimmed-down cabinet, said the new prime minister would bring a “new dynamic” to US diplomacy. She also mentioned efforts to arrange a call between Trump and Carney “in the next couple of days.”
Carney’s 23-minister cabinet, reduced from Trudeau’s 36, maintains key figures dealing with US relations, including Francois-Philippe Champagne in finance, Dominic LeBlanc moving to trade, and Bill Blair continuing as defense minister.
Political landscape shifting
Trump’s aggressive trade policies have dramatically altered Canada’s political climate. Earlier this year, the Liberals trailed the Conservatives by 20 percentage points in polls, but since Trudeau announced his resignation on January 6, the gap has narrowed significantly.
“Carney is arriving at a good time. He has emerged as a figure people seem to trust to take on Donald Trump,” University of Winnipeg politics professor Felix Mathieu told AFP.
During the week that Trump’s 25 percent tariffs on steel and aluminum imports took effect, Carney visited a steel plant in Hamilton, Ontario. Wearing protective gear, he expressed willingness to negotiate with Trump while emphasizing that any deal must include “respect for Canadian sovereignty.”
Breaking with Trudeau’s policies
In his departure message Thursday, Trudeau reflected on nearly a decade in office, saying he was “proud to have served a country full of people who stand up for what’s right.”
While Trudeau’s popularity had declined over the past year, his firm responses to Trump’s provocations helped restore some public support.
Carney has made deliberate moves to distance himself from his predecessor’s policies. While maintaining climate change as a priority, he plans to eliminate Trudeau’s “divisive” carbon tax on individuals and families in favor of market-driven solutions.
He is also canceling a proposed tax on capital gains that would have affected wealthy Canadians, which Trudeau’s government had presented as necessary for fiscal stability.
“We think builders should be incentivized for taking risks and rewarded when they succeed,” Carney said Sunday, signaling a more business-friendly approach as he prepares to lead Canada through turbulent times with its largest trading partner.
