Canada’s next PM Mark Carney vows to win trade war with Trump

The former governor of the Canadian and UK central banks beat three rivals in the Liberal Party’s leadership contest in a landslide.

In much of his victory speech, Carney, 59, attacked Trump, who has imposed tariffs on Canada and said he wants to make the country the 51st US state. “Americans should make no mistake,” he said. “In trade, as in hockey, Canada will win.”

Carney is expected to be sworn in as PM in the coming days and will lead the Liberals in the next general election, which is expected to be called in the coming weeks.

Carney, now prime minister-designate, has never served in elected office.

The Liberal leadership race began in January after Trudeau resigned following nearly a decade in office. He had faced internal pressure to quit over deep unpopularity with voters, who were frustrated with a housing crisis and the rising cost of living.

Carney won on the first ballot on Sunday evening, taking 85.9% of the vote to beat his nearest rival, former Finance Minister Chrystia Freeland.

Loud cheers erupted as the results were announced to a crowd of some 1,600 party faithful in Ottawa, Canada’s capital.

The party said more than 150,000 people had cast ballots in the race.

Carney, who will lead a minority government in parliament, could either call a snap general election himself or opposition parties could force one with a no-confidence vote later this month.

The governing Liberals have seen a remarkable political turnaround since Trudeau’s exit, as Canadians have been galvanised by Donald Trump’s trade threats and support for annexing their country

At the beginning of the year, they trailed the Conservatives, led by Pierre Poilievre, by more than 20 points in election polls.

They have since narrowed the gap and some polls show them statistically tied with Poilievre’s party.

Much of Carney’s speech focused on what he called Trump’s “unjustified tariffs” on Canada, America’s largest trading partner.

The US imposed levies of 25% on Canadian goods last Tuesday, but rowed back within days to exempt goods compliant with an existing trade agreement.

Canada responded with retaliatory tariffs of its own as Trudeau accused his US counterpart of trying to collapse the country’s economy.

Carney echoed that in his victory speech, saying Trump was “attacking Canadian workers, families, and businesses”.

“We can’t let him succeed,” he added, as the crowd booed loudly.

He said his government would keep tariffs on US imports “until the Americans show us respect”.

Canada’s economy depends significantly on trade with the US and risks tipping into recession if the sweeping tariffs threatened by Trump are fully imposed.

“I know these are dark days,” Carney said. “Dark days brought on by a country we can no longer trust.

“We’re getting over the shock, but let us never forget the lessons: we have to look after ourselves and we have to look out for each other. We need to pull together in the tough days ahead.”

Carney also pledged to “secure our borders” – a key demand of Trump who has accused Canada of failing to control the flow of migrants and fentanyl going south.

The US president even got a mention in Carney’s attacks on his main opponent, Conservative leader Poilievre.

“Pierre Poilievre’s plan will leave us divided and ready to be conquered,” said Carney.

“Because a person who worships at the altar of Donald Trump will kneel before him, not stand up to him.”

Shortly before Carney took to the stage, Trudeau gave an emotional farewell speech, reflecting on his 12 years as Liberal leader.

He warned that Canada was facing an “existential challenge” from the US under Trump.

The Conservatives have had to pivot politically since Trudeau’s resignation, and are attacking Carney as not representing change but rather being “just like Justin”.

They accuse the Liberals of a “sneaky” plan to win a fourth term by simply substituting their leader.

Poilievre’s party has also accused Carney of lying about his role in moving investment firm Brookfield Asset Management’s head office from Toronto to New York.

Carney said the formal decision by shareholders to relocate the firm was made after he quit the board at the start of this year but a letter emerged showing he had recommended the move in December.

Federal Public Safety Minister David McGuinty, who endorsed Carney, told the BBC that he “embodies the kind of quiet determination, but steely determination and competence to deal with some of these big issues”.

“I’m really, really excited for what’s coming. And frankly, it’s time for an election.”

The Liberals will face Poilievre’s Conservatives, who are the official opposition with 120 seats in the House of Commons; the Bloc Quebecois, who have 33 seats; and the New Democrats, who have 24, when Canadians next go to the polls.

The former central banker has run on a broadly centrist agenda, a shift from Trudeau, who moved the Liberals to the left.

A major promise is to push forward major energy projects like pipelines, which have faced political roadblocks in recent years.

He has promised major investments in housing and clean energy projects, and to liberalise trade within Canada, where barriers remain between provinces, as well as diversifying the economy away from the US.

During the leadership race, Carney promised to cap the size of the federal government, which expanded 40% under Trudeau.