Mark Carney, a former central banker and economic crisis manager, was sworn in as Canada’s 24th prime minister on Friday, taking over the leadership from Justin Trudeau, who resigned after nearly a decade in office.
Carney, who turns 60 on March 16, assumes the helm of a country grappling with a tense trade war with the United States, escalating economic threats from President Donald Trump, and the pressure of an impending federal election. “It is a solemn duty to serve as Prime Minister at this time of great consequence,” Carney told a news conference after the ceremony at Rideau Hall.
New era for Canada
Carney’s swearing-in marks a pivotal moment in Canadian history, as he becomes the first prime minister to assume office without prior elected public office experience. The former governor of the Bank of Canada and the Bank of England is also the first prime minister born in Canada’s Northwest Territories. His extensive background in global financial institutions, including his role in managing the 2008 financial crisis and navigating the impacts of Brexit in the U.K., has positioned him as a steady hand at a time when Canada faces significant international challenges.
“It’s an honor to serve as Canada’s new prime minister,” Carney said after the ceremony. “Canadians expect action, and that’s exactly what this team will deliver.”
Carney said his government will concentrate on growing the economy, making life more affordable and making the country more secure. The first decision taken by his new cabinet was to set the consumer carbon price to zero. He had promised to eliminate the tax during the leadership race. Canadians will receive a final rebate in April, while British Columbia plans to repeal its carbon tax in response.
Carney’s ascension to office comes at a time when relations between Canada and the U.S. are at an all-time low, with President Trump threatening tariffs and even suggesting the annexation of Canada. Carney has vowed to defend Canadian sovereignty and navigate these turbulent waters with diplomacy and resolve.
Plan to strengthen Canada’s economy
In his first speech as prime minister, Carney outlined his economic vision, which includes reducing international trade barriers, expanding access to global markets, and enhancing Canada’s oil and natural gas exports. He expressed a commitment to diversifying Canada’s trade partnerships, moving beyond traditional reliance on the United States, and securing better deals for Canadian industries.
He adopted a less confrontational stance toward President Trump, acknowledging his efforts to support American workers and combat fentanyl. Carney emphasized the need for cooperation between the two leaders, noting their shared business experience, including in real estate, and their past engagement at the G20 during Carney’s tenure as head of the Bank of England.
Looking beyond the U.S., Carney also outlined plans to engage with international leaders in the coming weeks. Early next week, the new prime minister is scheduled to visit Paris and London for talks with French President Emmanuel Macron and British Prime Minister Keir Starmer. The discussions will focus on several pressing global issues, including President Trump’s “America First” agenda, the ongoing conflict in Ukraine, and the strengthening of international security cooperation.
Confronting the US Trade War
One of Carney’s most pressing challenges is the ongoing trade conflict with the United States. President Trump imposed 25% tariffs on Canadian steel and aluminum in 2018 and has threatened sweeping tariffs on all Canadian products starting April 2.
The rhetoric coming from Washington, with Trump suggesting that Canada should become the 51st U.S. state, has sparked widespread anger among Canadians. Addressing Trump’s comments about annexing Canada, he dismissed them as “crazy.”
“We will never, ever, in any way, shape, or form, be part of the United States. America is not Canada,” Carney declared in his first speech as prime minister. “We are fundamentally a different country.”
Despite these harsh words from the U.S. president, Carney remains open to dialogue and said he is ready to meet with President Trump if he shows respect for Canadian sovereignty. “The President is a successful businessperson and dealmaker. We are his largest client in many industries,” Carney said. “Clients expect respect and collaboration in a proper commercial way.” While he has no immediate plans to visit the White House, Carney hopes for a conversation with Trump soon to discuss mutual economic interests and the ongoing trade disputes.
Carney announces smaller, focused cabinet
Carney wasted no time assembling his cabinet of 13 men and 11 women, which was sworn in alongside him on Friday. In a departure from Trudeau’s expansive team of 37 ministers, Carney has streamlined the cabinet to 24 members, aiming to foster efficiency and quick decision-making in a time of crisis.
The new cabinet includes several holdovers from Trudeau’s administration, with notable changes. François-Philippe Champagne, who previously served as innovation minister, has been appointed as finance minister. Melanie Joly will continue as foreign minister, while Chrystia Freeland, who previously resigned from the Trudeau government, has returned as minister of transport and internal trade.
“A smaller, experienced cabinet that moves faster, secures our economy, and protects Canada’s future,” Carney stated. He said protecting Canadian workers and their families in the face of unjustified trade actions and growing the economy will be his top priorities.
Divisive election looms
Carney’s leadership will be tested in the coming months, with Canada’s next general election set to take place before October. While the opposition Conservatives had hoped to make the election a referendum on Trudeau’s tenure, Carney’s arrival on the political stage shifts the focus to his ability to handle the growing pressure from the U.S.
Former Prime Minister Jean Chrétien, who served as the country’s leader from 1993 to 2003, expressed confidence in Carney’s ability to manage the crisis. “He will do very well. He’s respected internationally,” Chrétien told reporters. But, he added: “There is no magic solution. This is not a normal situation. We’ve never seen someone who changes his mind every five minutes as president of the United States.”
The opposition, led by Pierre Poilievre, has already begun criticizing Carney’s cabinet, arguing that the new leadership is too similar to the previous government. “87% of Carney’s ministers were Trudeau’s ministers,” Poilievre wrote on social media. “A Liberal is a Liberal is a Liberal.”
Despite these early criticisms, Carney’s leadership represents a potential turning point for Canada, as the country faces unprecedented economic and political challenges.
Who is Mark Carney?
A former central banker and economist, Carney has built a career on managing crises and navigating complex global financial landscapes.
Born in 1965 in Fort Smith, Northwest Territories, Carney grew up in Edmonton, Alberta. He holds degrees from Harvard University and Oxford University, along with a distinguished career in investment banking at Goldman Sachs.
Carney’s financial acumen earned him appointments to top leadership roles: he served as the governor of the Bank of Canada from 2008 to 2013, and later as the governor of the Bank of England from 2013 to 2020. His tenure at these institutions was marked by decisive actions that helped stabilize economies during the global financial crisis and the Brexit upheaval.
After stepping down from the Bank of England, Carney continued his global impact by assuming the role of the United Nations’ Special Envoy for Climate Action and Finance, where he focused on integrating environmental sustainability into economic policy. Throughout his career, Carney has demonstrated an ability to address both immediate economic concerns and long-term strategic challenges, earning him widespread recognition as a “fixer” in the world of central banking.
“If I had stayed in private finance, the opportunity cost of me being in public service for 20 years is enormous. Do I care about money? Obviously, I have a family to provide for and stuff, but I am in bloody Ottawa. I am back in Ottawa,” Carney had said back in 2021.