Former banker Mark Carney wins race to become Canada's next PM.

 Extract from ABC News

2 hours ago

Mark Carney named new Canadian prime minister

In short:

Former banker Mark Carney took 86 per cent of votes to become leader of Canada's ruling party.

The 59-year-old will succeed Justin Trudeau as prime minister, who announced his resignation after nine years in power. 

What's next?

Mr Carney argued he was best placed to oversee trade negotiations with US President Donald Trump, and said he would keep retaliatory tariffs in place until "the Americans show us respect".

Link copied

Former central banker Mark Carney has won the race to become leader of Canada's ruling Liberal Party and will succeed Justin Trudeau as prime minister, official results have showed. 

Mr Carney will take over at a tumultuous time in Canada, which is in the midst of a trade war with longtime ally the United States and must hold a general election soon.

The 59-year-old took 86 per cent of votes cast to beat former finance minister Chrystia Freeland in a contest in which just under 152,000 party members voted.

Canada to expand retaliatory tariffs against US

Photo shows Justin Trudeau speaks at a press conference indoors.

Canadian Prime Minister Justin Trudeau says further tariffs against American products will be introduced in coming weeks, labelling the trade war launched by Donald Trump as "dumb".

After more than nine years in power, Mr Trudeau announced in January he would step down as his approval rating plummeted, forcing the ruling Liberals to run a quick contest to replace him.

Mr Carney, a political novice, argued that he was best placed to revive the party and to oversee trade negotiations with US President Donald Trump, who is threatening additional tariffs that could cripple Canada's export-dependent economy.

"There is someone who is trying to weaken our economy," Mr Carney said. 

"Donald Trump, as we know, has put unjustified tariffs on what we build, on what we sell and how we make a living. 

"He's attacking Canadian families, workers and businesses and we cannot let him succeed and we won't."

Mr Carney said Canada would keep retaliatory tariffs in place until "the Americans show us respect".

Mr Carney navigated crises when he was head of the Bank of Canada and when, in 2013, he became the first non-citizen to run the Bank of England since it was founded in 1694. 

His appointment won bipartisan praise in the UK after Canada recovered from the 2008 financial crisis faster than many other countries.

Canadian prime minister hits out at Trump tariffs

'Canada will never, ever be part of America'

At the start of 2025 the party trailed by 20 or more points but is now statistically tied with the official opposition Conservatives led by career politician Pierre Poilievre in several polls.

At a protest outside Canada's Parliament in Ottawa on Sunday, dozens of Canadians held signs protesting against Trump with no reference to domestic politics.

Trump's trade war and his talk of making Canada the 51st US state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. 

Some are cancelling trips south of the border and many are avoiding buying American goods when they can.

Mr Carney said America was "not Canada."

"And Canada will never, ever will be a part of America in any way, shape or form," he said.

'Rally-around-the-flag moment'

University of British Columbia politics professor Richard Johnston said there was a real "rallying-around-the-flag moment" that "we would never have predicted a year ago".

"I think it's probably true as we speak that the Liberals have been saved from oblivion," he said. 

Trump tariffs on Canada, Mexico and China could spark global trade war

Photo shows Donald Trump grimacing while wearing a blue suit, red tie and red MAGA hat on a backdrop of blurred tree branches

China has retaliated with tariffs of its own after the US confirmed it would enforce 25 per cent tariffs on goods, with financial experts saying this could be the start of a trade war.

After decades of bilateral stability, this year's election is expected to focus on who is best equipped to deal with the United States.

Polls indicate that neither the Liberals nor the Conservatives would be able to form a majority government. 

An election must be held by October 20.

Two Liberal Party sources said Mr Carney would call an election in coming weeks, meaning one could take place much sooner.

Mr Carney could legally serve as prime minister without a seat in the House of Commons but tradition dictates that he should seek to win one as soon as possible.

Liberals sought to compare Conservative leader Mr Poilievre to Trump in a recent advertisement. 

He in turn ramped up attacks on Mr Carney on Sunday.