Mark Carney becomes Canada’s new Prime Minister amid trade war with the U.S.

In a landslide victory, former central banker Mark Carney has been elected as the new leader of Canada’s Liberal Party, securing 86% of the vote on March 9, 2025. His win marks the beginning of a new chapter in Canadian politics as he steps into the role of Prime Minister following Justin Trudeau’s resignation in January.

Carney’s leadership comes at a challenging time, as Canada faces a growing trade war with its closest ally, the United States. Under President Donald Trump, the U.S. has imposed steep tariffs on Canadian goods, even going as far as to suggest annexing Canada as the 51st state. In his victory speech, Carney took a firm stance, saying, “The Americans want our resources, our water, our land, our country. If they succeed, they will destroy our way of life.” He also vowed to maintain the C$30 billion in retaliatory tariffs imposed under Trudeau until the U.S. government shows Canada due respect.

Who Is Mark Carney?

1. A Respected Economist with Global Experience

Born in 1965 in Canada’s Northwest Territories to Irish-origin parents, Carney grew up in Edmonton, Alberta. He earned a bachelor’s degree in economics from Harvard University before pursuing a master’s and doctorate at Oxford University as a Rhodes Scholar. His early career saw him working at Goldman Sachs for over a decade, gaining experience in financial hubs like London, Tokyo, New York, and Toronto.

Holding Canadian, British, and Irish citizenships, Carney has announced plans to renounce the latter two now that he has taken office.

2. A Crisis Manager Who Led Canada and the UK Through Economic Turmoil

Carney gained recognition for his leadership as Governor of the Bank of Canada during the 2008 financial crisis, where he slashed interest rates and introduced emergency loan facilities to stabilize the economy. Under his watch, Canada weathered the global crisis without requiring bank bailouts.

In 2011, he was appointed Chair of the Financial Stability Board, a global body overseeing financial regulations. Two years later, he became the first non-British Governor of the Bank of England, guiding the UK through Brexit while warning of the economic risks of leaving the EU. His crisis management experience now serves as a key credential as he prepares to face Trump’s aggressive economic policies.

3. A Longtime Climate Change Advocate

Carney has been a vocal proponent of climate action, serving as the UN Special Envoy on Climate Change since 2019. In a notable 2015 speech, “Breaking the Tragedy of the Horizon,” he criticized short-term political approaches to climate change and warned of its severe economic consequences.

Despite championing Canada’s carbon tax policy, Carney is now expected to reconsider its implementation amid growing political and public debate. His main opposition, Conservative leader Pierre Poilievre, has made repealing the tax a central part of his campaign.

4. Controversial Private Sector Ties

After leaving the Bank of England in 2020, Carney joined Brookfield Asset Management, a global investment firm focused on sustainable finance. However, critics have pointed out Brookfield’s recent decision to relocate its headquarters from Toronto to New York. Additionally, reports have surfaced that Carney remains linked to several corporate boards, raising concerns about potential conflicts of interest.

5. A Push for Global Financial Independence from the U.S. Dollar

During his tenure at the Bank of England, Carney suggested reducing the world’s reliance on the U.S. dollar in favor of alternatives like the Chinese renminbi or a global digital currency. He argued that such a shift could lessen the impact of American economic policies on global trade.

If Carney pursues similar initiatives as Prime Minister, he risks further escalating tensions with Trump. The U.S. president has already responded aggressively to reports of BRICS nations exploring an alternative currency, warning of 100% tariffs on countries that attempt to undermine the dollar’s dominance.

What’s Next for Canada Under Carney?

With a background in finance, crisis management, and climate policy, Carney enters office with a unique blend of expertise. However, his tenure will be tested by escalating trade conflicts, economic uncertainty, and a politically divided Canada. His ability to navigate these challenges while maintaining Canada’s sovereignty and economic stability will define his leadership in the years ahead.