Economist and political newcomer Mark Carney has officially taken office as Canada’s new prime minister, delivering a strong message that Canada will “never” become part of the United States.
Carney assumed office on Friday, mere days after winning the leadership of the governing Liberal Party, amid escalating trade tensions with U.S. President Donald Trump.
“We know that by building together, we can give ourselves far more than anyone else can take away,” Carney stated after his swearing-in ceremony.
He replaces outgoing Prime Minister Justin Trudeau, who led Canada for nine years. Carney’s victory in last week’s Liberal leadership contest was decisive, marking a significant shift in the party’s direction.
During his first press conference as prime minister in Ottawa, Carney directly addressed Trump’s previous remarks suggesting Canada could become the 51st U.S. state. “We will never, in any shape or form, be part of the U.S.,” he asserted.
Emphasizing the distinctiveness of Canadian identity, he added, “We are very fundamentally a different country,” later dismissing Trump’s idea as “crazy.”
Carney did not confirm whether he would push for an early federal election, currently scheduled for October, but indicated he would act swiftly to secure “as strong a mandate that is needed for the time.”
One of Carney’s first acts as prime minister was ending a policy that had long been a target of opposition criticism. He repealed the consumer carbon pricing program, a significant environmental policy from Trudeau’s tenure that had become unpopular amid rising inflation.
The carbon tax had been widely criticized by Conservatives, who argued it increased the cost of goods and energy for Canadian households. However, at an afternoon cabinet meeting, Carney clarified that his government remains committed to addressing climate change, noting that the industrial carbon tax on large emitters would remain in place.
Canadians who have been paying into the carbon pricing system will receive their final rebate checks in April.
In recent months, Canadian politics have been largely shaped by Trump’s trade war, which began after he took office in January. With an election on the horizon, Carney is expected to position himself as the most capable leader to handle Trump’s economic policies.
Carney is no stranger to financial crises. He previously served as governor of both the Bank of Canada and the Bank of England, where he played key roles in stabilizing both economies during turbulent times.
Next week, Carney is scheduled to embark on his first international trip as prime minister, visiting the United Kingdom and France.
Despite tensions, Carney expressed a willingness to engage with Trump. “We respect the United States. We respect President Trump,” he stated.
Acknowledging Trump’s policy priorities, Carney added, “President Trump has put some very important issues at the top of his agenda.”
Carney has pledged to maintain Canada’s retaliatory tariffs on specific U.S. goods for as long as Trump upholds the 25% universal tariffs on Canadian products not covered under the Canada-United States-Mexico Agreement (CUSMA).
Given Canada’s economic dependence on trade with the U.S., economists warn that if Trump’s tariffs are fully implemented, Canada could face a recession.
Carney’s new cabinet includes several ministers from Trudeau’s administration, particularly those who have been actively involved in negotiations with the Trump administration.
Key figures retained in the new government include Mélanie Joly, who continues as foreign affairs minister; David McGuinty, who remains in charge of public safety; Jonathan Wilkinson, who stays on as energy minister; and Dominic LeBlanc, who moves from finance to trade. François-Philippe Champagne, formerly industry minister, has been appointed to the finance portfolio.
As Canada prepares for its next federal election, Carney’s primary political rival will be Conservative leader Pierre Poilievre.
Before Trump’s tariff threats, the Conservatives held a commanding 20-point lead in some election polls. However, recent polling suggests a much tighter race.
Speaking after Carney’s swearing-in, Poilievre criticized the Liberals’ tenure, arguing that after nine years in power, they had failed to address key economic challenges. “It will be the same Liberal results,” he remarked.
Poilievre also vowed to take a tougher stance against Trump’s trade policies if elected. “If I were to be elected prime minister, I would face off against President Trump directly, respond with counter tariffs, and take back control,” he declared.
In the upcoming election, the Liberals will not only face the Conservatives, who hold 120 seats in the House of Commons, but also the Bloc Québécois, with 33 seats, and the New Democratic Party (NDP), which currently has 24 seats.
NDP leader Jagmeet Singh reacted to Carney’s swearing-in by criticizing his cabinet selections, arguing that they signal a lack of space for progressive Liberals in the new government.
Singh noted that Carney did not create separate cabinet roles for ministers of women, youth, or people with disabilities. He accused the new prime minister of favoring the wealthy, stating that Carney has made billionaires “very rich at the cost of workers.”