Canada will soon have a new prime minister in Mark Carney as the country grapples with a trade war launched by U.S. President Donald Trump.
Carney, a former Bank of Canada and Bank of England governor, was selected to replace outgoing Prime Minister Justin Trudeau as the leader of the Liberal Party on Sunday night. He is expected to be sworn in over the coming days.
The economist and banker will have his work cut out for him, though, as he takes over the helm at a time of trade uncertainty with Canada’s closest ally.
The U.S. has already imposed a sweeping 25 per cent tariff on Canadian goods that went into effect last week, as did Canada’s counter-tariffs on American goods worth $30 billion. Trump paused the tariffs on some, but not all, goods for one month on Thursday.
And Canada is bracing for more tariffs: Trump has threatened some on Canadian dairy and lumber as well as all steel and aluminum imports, plus so-called reciprocal tariffs on all of America’s trading partners, including Canada.
In his first speech after winning the Liberal leadership contest Sunday night, Carney called the U.S. a “country we can no longer trust” and had a warning for Trump.
“We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves,” he said.
“So, the Americans, they should make no mistake, in trade, as in hockey, Canada will win.”
What Mark Carney has said about tariffs
In his acceptance speech Sunday night, Carney said Trump is trying to weaken the Canadian economy with “unjustified tariffs” as he warned about “dark days” brought on by the U.S. move.
“He’s attacking Canadian families, workers and businesses and we cannot let him succeed,” Carney said.
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He also shrugged off Trump’s repeated remarks about Canada becoming the 51st U.S. state.
“America is not Canada, and Canada never, ever will be part of America in any way, shape or form,” Carney said.
What is Mark Carney’s trade war plan?
As tariff concerns grow, business groups have urged the soon-to-be prime minister to lead a united response and put in place policies that they say strengthen Canada’s economy.
“During this time of upheaval as we navigate the effects of the ongoing U.S. trade war, it is essential that Canada’s public and private sector leaders work together to overcome the challenges we face and embrace the opportunities ahead for our country,” Goldy Hyder, president and CEO of the Business Council of Canada, said in a statement Sunday.
The Canadian Chamber of Commerce called for a “multi-partisan effort to make sure that Canada is an open and competitive place for business.”
“That means updating existing infrastructure, reforming our tax and regulatory systems, expanding our export markets, and ensuring free trade between provinces and territories,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce.
On Friday, the federal government unveiled new support measures worth $6.5 billion to mitigate the impact of the U.S. trade war on Canadian workers.
Labour Minister Steven MacKinnon also announced the temporary expansion of the “work-sharing program” to let employers cut hours while keeping workers in their jobs with income support.
Carney said he’ll keep Canada’s counter-tariffs in place until all of Trump’s tariffs are lifted.
He pledged to use all the proceeds from the retaliatory tariffs to support workers in Canada.
“The Canadian government has rightly retaliated with our own tariffs that will have maximum impact in the United States and minimum impact here in Canada,” he said.
“And my government will keep our tariffs on until the Americans show us respect and until they can join us in making credible and reliable commitments to free and fair trade.”
He praised the provinces, which have issued their own suites of retaliatory measures, for “stepping up to the fight.”
Carney’s Liberal leadership campaign has outlined plans to build a stronger and united economy that would remove interprovincial trade barriers.
He has also vowed to diversify and expand Canada’s trading relationships with “reliable” partners and beef up security at the borders.
“We can give ourselves far, far more than Donald Trump can ever take away,” Carney said on Sunday.
To help put more money in Canadians’ pockets, Carney said he will immediately eliminate the federal government’s carbon price on consumers and stop the capital gains tax increase.
Conservative Leader Pierre Poilievre has also been vocal in condemning Trump’s tariffs and vowing to fight back for Canadians.
If elected prime minister, Poilievre says his response plan will include targeting American goods with retaliatory tariffs and giving money collected by counter-tariffs to the hardest-hit workers, while also lowering taxes, knocking down internal trade barriers and rebuilding Canada’s military.
Speaking at a rally in London, Ont., on Sunday, Poilievre criticized Carney, saying he made “Canada weaker and poorer” while working as an economic adviser for Trudeau.
“For the first time in our history, Canada will have a sneaky prime minister with millions of dollars of financial interests that go directly against our national interest,” Poilievre said.
“And make no mistake, Donald Trump will have a big smile on his face as he exploits all of Carney’s many conflicts to attack Canadian workers and Canadian jobs.”
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