Canada’s Next Prime Minister Has Managed the Financial Crisis, Brexit and Now Trump’s Trade War

TORONTO (AP) — Canada’s next prime minister has already helped run two Group of Seven economies in crisis and now will try to steer Canada through a looming trade war brought by U.S. President Donald Trump, a threat of annexation and an expected federal election.

Former central banker Mark Carney will become prime minister after the governing Liberal Party elected him its leader Sunday in a landside vote with 85.9% support.

Carney, 59, replaces Prime Minister Justin Trudeau, who announced his resignation in January but remains prime minister until his successor is sworn in in the coming days. Carney is widely expected to trigger an election the coming days or weeks amid Trump’s sweeping tariff threats.

Canadians Booing the American Anthem

“We didn’t ask for this fight. But Canadians are always ready when someone else drops the gloves,” Carney said. “The Americans, they should make no mistake, in trade, as in hockey, Canada will win.”

Carney said Canada will keep its initial retaliatory tariffs in place until “the Americans show us respect.”

Carney navigated crises when he was the head of the Bank of Canada from 2008, and then in 2013 when he became the first noncitizen to run the Bank of England since it was founded in 1694. His appointment won bipartisan praise in the U.K. after Canada recovered from the 2008 financial crisis faster than many other countries. He helped managed the worst impacts of Brexit in the U.K.

The opposition Conservatives hoped to make the election about Trudeau, whose popularity declined as food and housing prices rose and immigration surged.

Trump’s trade war and his talk of making Canada the 51st U.S. state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.

Americans ‘Would Destroy Our Way Of Life’

The surge in Canadian nationalism has bolstered the Liberal Party’s chances in a parliamentary election expected within days or weeks, and Liberal showings have been improving in opinion polls.

“The Americans want our resources, our water, our land, our country. Think about it. If they succeed they would destroy our way of life,” Carney said. “In America health care is big business. In Canada it is a right.”

Carney said America is “a melting pot. Canada is mosaic,” he said. “America is not Canada. And Canada will never, ever will be a part of America in any way, shape or form.”

After decades of bilateral stability, the vote on Canada’s next leader now is expected to focus on who is best equipped to deal with the United States.

“These are dark days, dark days brought on by a country we can no longer trust,” Carney said. “We need to pull together in the tough days ahead.”

Trump has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war. But he has threatened other tariffs on steel, aluminum, dairy and other products.

Carney picked up one endorsement after another from Cabinet ministers and members of Parliament since declaring his candidacy in January. He is a highly educated economist with Wall Street experience who has long been interested in entering politics and becoming prime minister, but he lacks political experience.

Trudeau previously offered to make him finance minister. Carney has said former Conservative Prime Minister Stephen Harper also offered to make him finance minister.

Canada Facing ‘Nation-Defining Moment’

Carney is credited with keeping money flowing through the Canadian economy during the financial crisis by acting quickly in cutting interest rates to their lowest level ever of 1%, working with bankers to sustain lending through the crisis and, critically, letting the public know rates would remain low so they would keep borrowing. He was the first central banker to commit to keep them at a historic low for a definite time, a step the U.S. Federal Reserve would follow.

A former Goldman Sachs executive, he worked for 13 years in London, Tokyo, New York and Toronto, before being appointed deputy governor of the Bank of Canada in 2003.

In 2020, he began serving as the United Nations’ special envoy for climate action and finance.

The other top Liberal leadership candidate was former Deputy Prime Minister Chrystia Freeland, who received just 8% of the vote. Trudeau told Freeland in December that he no longer wanted her as finance minister, but that she could remain deputy prime minister and the point person for U.S.-Canada relations. Freeland resigned shortly after, releasing a scathing letter about the government that proved to be the last straw for Trudeau.

Either Carney will call an election in the coming days or weeks, or the opposition parties in Parliament could force one with a no-confidence vote later this month.

Trudeau urged Liberals supporters to get involved.

“This is a nation-defining moment. Democracy is not a given. Freedom is not a given. Even Canada is not a given,” Trudeau said.