Mark Carney sworn in as Canadian prime minister with trade ruling agenda

Randy Thanthong-Knight, Bloomberg News on Mar 14, 2025

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OTTAWA, Canada — Mark Carney has been sworn in as Canada’s 24th prime minister, bringing the former central banker to power in the middle of an explosive trade war with the U.S.

The former governor of the Bank of Canada and the Bank of England was officially installed as Canada’s leader at a ceremony in Ottawa on Friday, five days after the Liberal Party members voted overwhelmingly for him to replace Justin Trudeau as head of the party.

Carney, 59, appointed a Cabinet that was smaller than Trudeau’s and will have a shorter shelf life, as an election is expected within weeks. He tapped Francois-Philippe Champagne to be his finance minister and moved Dominic LeBlanc to international trade, while keeping Melanie Joly as his foreign minister and David McGuinty as public safety minister.

“Today, we’re building a government that meets the moment,” Carney said in a statement. “Canadians expect action — and that’s what this team will deliver. A smaller, experienced Cabinet that moves faster, secures our economy, and protects Canada’s future.”

The ex-Goldman Sachs banker’s rise to the country’s top office is remarkable for a number of reasons. He is the first Canadian prime minister to get the job without ever having held a seat in the House of Commons or Senate, except for the country’s very first leader, who was appointed before its first election. He also assumes the role at perhaps the most hostile moment in Canada-U.S. relations in recent history.

U.S. President Donald Trump has threatened to use “economic force” to try to turn Canada into a U.S. state and has already imposed steep tariffs on many Canadian goods, with Canada retaliating in kind. The escalating trade tensions between the countries have already hampered business and consumer spending plans. Additional tariffs expected next month have the potential to plunge Canada into a recession this year.

Carney has touted his credentials as someone who has led in uncertain times before. During his first year as Bank of Canada governor, the global financial system was seized by a full-blown crisis. He slashed interest rates to almost zero. As Bank of England governor, he also helped steer the U.K. economy during the turmoil of Brexit.

Despite his impressive resume that spans two Group of Seven central banks and major investment firms, Carney is a political novice. He is expected to soon call an election, in which he must convince Canadians that he’s the best person to take on Trump and win the trade war, or at least mitigate the damage from it.

On Friday, he revealed the Cabinet that will back him in the trade fight and the upcoming election. Cutting its size from 37 people to just 24, he moved Environment Minister Steven Guilbeault to a “Canadian culture and identity” portfolio, replaced Immigration Minister Marc Miller with Rachel Bendayan and promoted Anita Anand to industry minister.

Carney’s rival in the Liberal leadership race, former Finance Minister Chrystia Freeland, will take over Anand’s previous role of transport and internal trade. Jonathan Wilkinson will remain energy minister.

The election will see Carney face off against a sharp career politician, Conservative Leader Pierre Poilievre, whose party has lost its huge lead in opinion polls in recent weeks. Carney may hope to ride a surge in support for the incumbent Liberals as Canadians seek some measure of stability in turbulent times.

The party has also strengthened in popularity since Trudeau promised in January to resign once a new leader was chosen. Carney’s swearing-in ushers out the Trudeau era, which was marked by expansive social programs that improved some measures of equality, but also saw gross domestic product per capita growth lag the country’s peers.

Carney plans to travel to France and the U.K. early next week, a signal that he believes his government needs to shore up relationships with major European countries that are also targets of Trump’s trade war. He is also preparing a phone call with Volodymyr Zelenskiy, the Ukrainian president’s office said.

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With assistance from David Gura.

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