Mark Carney Is Sworn in as Canada's New Leader: What He's Said on Tariffs

Former central banker Mark Carney was officially sworn in as Canada's 24th prime minister on Friday, taking the helm of the second largest country in the world at a time of heightened tensions with the United States.

Carney, a political outsider with no prior elected experience, now faces the challenge of leading Canada through an escalating trade dispute with President Donald Trump, who has imposed steep tariffs on Canadian goods.

Why It Matters

The swearing-in ceremony at Rideau Hall in Ottawa marked the beginning of Carney's tenure, replacing outgoing Prime Minister Justin Trudeau who stepped down after nearly a decade in power. Carney acknowledged the economic uncertainty facing the country and emphasized the importance of defending Canada's interests.

Carney will also take office as Canada faces one of the most significant trade disputes in recent history. Trump has imposed a 25 percent tariff on Canadian steel and aluminum and has threatened additional measures that could impact a wide range of Canadian industries. Canada is the largest supplier of steel and aluminum to the U.S. Trump has also suggested Canada should become the "51st state," a remark that has been met with widespread backlash from Canadians.

Trump sees tariffs as a useful tool of American economic power. He used tariffs against Canada to coerce it to do more about the cross-border trafficking of fentanyl, an illicit synthetic opioid behind hundreds of thousands of deaths in the U.S.

What To Know

Earlier this week, Canada said it plans to impose retaliatory tariffs of 29.8 billion Canadian dollars ($20.7 billion) starting Thursday in response to the U.S. taxing its steel and aluminum. The Associated Press reported that the new tariffs would be on steel and aluminum products, as well as U.S. goods including computers, sports equipment and water heaters worth CA$14.2 billion ($9.9 billion).

"We don't want to do this because we believe in open borders and free and fair trade, but we are doing this in response," Carney said.

The new prime minister, however, has made it clear he is willing to negotiate with Trump, but only under certain conditions.

"I am prepared to meet with President Trump when there is respect for Canadian sovereignty," Carney said earlier this week, as reported by CNBC. He added that Canada will maintain retaliatory tariffs on U.S. goods until Washington approaches the talks with "mutual respect."

In his victory speech on Monday, after securing the party leadership with 85.9 percent of the vote, Carney emphasized Canada's resolve, stating, "We didn't ask for this fight, but Canadians are always ready when someone else drops the gloves. Make no mistake, Canada will win."

On Wednesday, the new prime minister said Trump's new tariffs were "unjustified."

Carney also responded strongly against suggestions that Canada could become America's 51st state, stressing: "We can't change Donald Trump...[but] because we're masters in our own home, we can control our economic destiny."

Carney's government is expected to be short-lived unless he can secure a stronger mandate in an upcoming federal election. The new prime minister is widely expected to call a snap election within weeks, as the Liberal Party seeks to capitalize on a boost in support following Trump's trade war rhetoric.

If Carney does not trigger an election, opposition parties have threatened to bring down the Liberal minority government through a confidence vote by the end of March.

While recent polls suggest a tight race between Carney's Liberals and the opposition Conservatives, the heightened tensions with the U.S. have complicated political calculations. Some analysts believe Trump's aggressive trade policies could rally Canadian voters behind Carney, while others warn that economic instability could weaken his position.

What People Are Saying

Canada Prime Minister Mark Carney during his opening remarks on Friday about what the country's government will be focused on: "Growing this great country by putting more money in Canadians' pockets. By ensuring that government spends less so Canada can invest more."

U.S. State Secretary Marco Rubio speaking to the press on Thursday: "Well, he [Trump] said it [Canada] should become the 51st state from an economic standpoint. He says if they became the 51st state, we wouldn't have to worry about the border and fentanyl coming across because now we would be able to manage that."

What Happens Next?

Efforts are already underway to arrange a phone call between Carney and Trump in the coming days, according to Canadian Foreign Minister Mélanie Joly. However, given Trump's history of abrupt policy changes, the success of these discussions remains uncertain.