Canada’s Future Prime Minister Pledges to Conquer Trade Dispute with Trump

Jessica Murphy

BBC News, Ottawa

Mark Carney declares he will not allow Donald Trump to “succeed” in the trade battle

Mark Carney has emerged victorious in the competition to follow Justin Trudeau as Canada’s prime minister, pledging to confront the trade conflict instigated by US President Donald Trump during his governance at a time of significant turmoil.

The ex-governor of the central banks for Canada and the UK triumphed in a decisive victory over three contenders in the Liberal Party leadership election.

Throughout his victory address, Carney, aged 59, strongly criticized Trump, who has placed tariffs on Canadian products and expressed a desire to transform Canada into the 51st state of the US. “Americans should take heed,” he asserted. “In trade, akin to hockey, Canada will prevail.”

Carney is anticipated to be inaugurated as prime minister shortly and will guide the Liberals into the forthcoming general election, which is likely to be announced in the near future.

Watch: Trudeau’s farewell speech indicates Canada will ‘fight when necessary’

Carney, who is now the prime minister-designate, has no previous experience in elected office.

The Liberal leadership race launched in January following Trudeau’s resignation after close to a decade in power, facing immense pressure due to his significant unpopularity related to a housing crisis and growing living costs.

Carney achieved victory in the first round Sunday night, garnering 85.9% of the vote against his closest opponent, former Finance Minister Chrystia Freeland.

Enthusiastic cheers erupted from the audience of around 1,600 party supporters in Ottawa, the capital of Canada.

The party announced that over 150,000 individuals participated in the voting process.

Carney will preside over a minority government in Parliament and may call for an early general election, or opposition parties could instigate one with a no-confidence motion later this month.

Since Trudeau’s departure, the governing Liberals experienced a remarkable political shift as Canadians rallied in response to Trump’s threats regarding trade and support for annexation.

Earlier in the year, they were trailing the Conservatives, helmed by Pierre Poilievre, by over 20 points in election surveys.

They have since reduced this gap, with some polls indicating they are now virtually tied with Poilievre’s party.

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Reuters Conservative Party of Canada leader Pierre Poilievre speaks on Parliament Hill in Ottawa on 29 October 2024
Reuters

Conservative leader Pierre Poilievre faces the challenge of dealing with Mark Carney

Much of Carney’s address concentrated on what he termed Trump’s “unjustified tariffs” applied to Canada, the primary trading partner for the US.

Last Tuesday, the US imposed tariffs of 25% on Canadian products but quickly reversed this to exempt goods in compliance with an existing trade agreement.

In retaliation, Canada imposed its own tariffs, with Trudeau accusing his US counterpart of attempting to destabilize the Canadian economy.

In his victory address, Carney reiterated this sentiment, stating that Trump was “attacking Canadian workers, families, and businesses”.

“We cannot allow him to achieve success,” he remarked, as the audience responded with loud boos.

He proclaimed that his administration would maintain tariffs on US goods “until the Americans demonstrate respect toward us.”

Trade with the US is crucial to Canada’s economy, which faces risks of a recession if the extensive tariffs threatened by Trump are enacted.

“I recognize these are challenging times,” Carney stated. “Challenging times instigated by a nation we can no longer rely upon.

“We are adjusting to the shock, but let us carry the lessons forward: we must safeguard our well-being and ensure we look out for one another. Uniting in these tough days ahead is essential.”

Watch: Significant moments in Mark Carney’s transition from banker to Prime Minister of Canada

Carney also committed to “secure our borders”—a key demand from Trump, who has criticized Canada for its inability to regulate the flow of migrants and fentanyl into the US.

Trump was even referenced in Carney’s criticisms of his principal challenger, Conservative leader Poilievre.

“Pierre Poilievre’s strategy will leave us fractured and vulnerable to conquest,” declared Carney.

“For one who venerates Donald Trump will bend to his will, not stand against him.”

Right before Carney’s address, Trudeau delivered a heartfelt farewell speech, looking back on his 12 years as the Liberal leader.

He cautioned that Canada was encountering an “existential threat” from the US under Trump.

The Conservatives have had to adjust politically since Trudeau’s resignation, attacking Carney for lacking authenticity in representing change and merely being “another Justin”.

They claim the Liberals have a “sneaky” strategy to secure a fourth term by simply replacing their leader.

Poilievre’s party has accused Carney of misleading the public regarding his involvement in relocating Brookfield Asset Management’s headquarters from Toronto to New York.

Carney remarked that the formal shareholder decision to relocate was made after he exited the board earlier this year; however, a letter surfaced indicating he had recommended the move in December.

Watch: Canadian reactions to Trump’s tariffs and their impact

Federal Public Safety Minister David McGuinty, who supported Carney, shared with the BBC that he “exemplifies the blend of quiet determination and steely resolve necessary to tackle significant issues”.

“I’m genuinely enthusiastic about what lies ahead. And honestly, it’s time for an election.”

The Liberals are poised to face Poilievre’s Conservatives, who currently occupy 120 seats in the House of Commons; the Bloc Quebecois, holding 33 seats; and the New Democrats with 24 seats, in the forthcoming elections.

What are Carney’s principal policies?

The former central banker has adopted a broadly centrist approach, marking a departure from Trudeau’s shift to the left for the Liberals.

A key commitment is to advance major energy initiatives like pipeline projects that have faced political hurdles in recent years.

He has pledged significant investments in housing and clean energy initiatives and aims to streamline trade across Canada, where provincial barriers still exist, as well as diversifying the economy away from its dependency on the US.

During the leadership campaign, Carney vowed to cap the size of the federal government, which experienced a 40% increase during Trudeau’s tenure.