March 2025
This past week, Mark Carney, a former central banker turned politician, won the leadership of Canada’s Liberal Party with a commanding 86% of the vote, paving the way for him to become the next Prime Minister of Canada. His victory marks a significant shift in Canadian politics, following the resignation of Justin Trudeau, who stepped down after nearly a decade in office.
Carney’s transition into leadership comes at a time of heightened tensions between Canada and the United States, particularly over tariffs imposed recently by President Donald Trump. As the new prime minister prepares to take office, many are wondering: What is his stance on tariffs, and how will he handle growing trade disputes with the U.S.?
Since Trudeau announced his resignation, Trump has aggressively targeted Canada with steep tariffs on steel, aluminum, and other key exports. The move has sparked economic uncertainty and triggered reciprocal tariffs from Canada, leading to rising trade tensions between the two countries. Carney has made it clear that he intends to stand up to Trump’s tariffs and push for a more balanced trade relationship. In his victory speech, he delivered a bold message to the U.S., vowing that Canada will never be “part of America in any way, shape, or form.”
"We didn't ask for this fight, but Canadians are always ready when someone else drops the gloves. The Americans should make no mistake: In trade, as in hockey, Canada will win." His speech reflects Canada’s growing frustration with U.S. trade policies and signals that he is prepared to maintain retaliatory tariffs until the U.S. reconsiders its approach.
As a former governor of both the Bank of Canada and the Bank of England, Carney is no stranger to high-stakes economic negotiations. His experience in global finance suggests that his approach to tariffs will be strategic and data-driven, rather than purely ideological. Here is what experts speculate we can expect from Carney’s tariff strategy:
Maintaining Retaliatory Tariffs – Carney has already signaled that Canada will not back down from imposing its own tariffs on American goods until the U.S. eases its restrictions.
Pushing for Free and Fair Trade – He has repeatedly emphasized the importance of free trade agreements, suggesting that he will work to restore stability in Canada-U.S. trade relations.
Targeted Economic Pressure – Carney may leverage Canada’s critical exports, such as energy and agriculture, as bargaining tools to counter Trump’s tariffs.
Strengthening Canada’s Domestic Market – With trade relations uncertain, Carney could prioritize policies that reduce Canada’s dependence on U.S. trade, focusing on domestic manufacturing and supply chain resilience.
