Economist and former Bank of England Governor Mark Carney has been elected to succeed Justin Trudeau as leader of Canada’s Liberal Party and the country’s next prime minister.
His election comes at a pivotal moment in U.S.-Canada relations, as both nations implement historic tariffs and brace for a potential trade war, Variety noted.
Carney secured a commanding victory, winning 85.9 percent of the Liberal Party vote. More than 150,000 members participated in the election, according to The New York Times.
It didn’t take long for Carney to take a veiled jab at President Donald Trump.
“America is not Canada. And Canada never, ever, will be part of America in any way, shape or form,” Carney said Sunday in his acceptance speech, referencing Trump’s jibes about making the country America’s 51st state.
“We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves,” he added. “So Americans should make no mistake. In trade, as in hockey, Canada will win.”
Carney’s inauguration is expected to take place as soon as this week. Since he does not currently hold a seat in Parliament, he is likely to call for federal elections shortly after taking office. “Carney spent 13 years as an investment banker with Goldman Sachs in 1990s and 2000s,” Variety reported.
Trump has implemented a range of tariffs on Canada — and Mexico — for their inability to stop the flow of fentanyl into the U.S. But also, Trump has said, in the case of Canada in particular, that many tariffs are actually reciprocal, meaning American duties for certain goods will match what U.S. companies are charged by Canada for imports.
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And not all Canadians are against that approach.
The CEO of Canada’s second-largest publicly traded company stated early last month that many in his country support the actions Trump is calling for and criticized Trudeau for not averting the trade war.
“Canada thrives when it works with America together. Win by helping America win. Trump believes that Canada has not held its side of the bargain,” Tobi Lutke, who co-founded Shopify, wrote on the X platform.
“These are things that every Canadian wants its government to do, too. These are not crazy demands, even if they came from an unpopular source. These tariffs are going to be devastating to so many people’s lives and small businesses,” he added.
Lutke’s scathing critique came in response to a clip of Trudeau announcing 25% retaliatory tariffs on $107 billion worth of U.S. goods and advocating for policies targeting red states, the New York Post reported.
Shopify, the e-commerce giant co-founded in 2006, is valued at around $150 billion. It is Canada’s largest tech company and the biggest startup in the country’s history, second only to the Royal Bank of Canada in size, The Post added.
Lutke, who is worth around $10 billion, is Canada’s richest citizen, the report noted further.
“Leadership is about doing what’s right, not what is popular. And hitting back will not lead to anything good. America will shrug it off. Canada will decline,” Lutke said regarding Trudeau’s planned counter-tariffs. “It’s simply the wrong choice in a possibility space where much better options would have been available.”
In 2023, Canada was America’s largest overall trading partner, with over $900 billion in goods and services exchanged between the two nations.
According to data from the U.S. Census Bureau, last year, the U.S. imported approximately $377 billion worth of goods from Canada while exporting $322 billion.
The tariffs are expected to impact Canada particularly hard, as roughly 75% of its exports are directed to the U.S., while only about 13% of American exports go to its northern neighbor, The Post said, citing Census data.