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Mark Carney wins race to replace Trudeau as Canada's prime minister
Published by Global Banking and Finance Review
Posted on March 9, 2025
3 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 9, 2025
3 min readLast updated: January 25, 2026
Mark Carney wins leadership of Canada's Liberal Party, set to succeed Justin Trudeau as Prime Minister amid trade tensions with the US.
By Promit Mukherjee and Ismail Shakil
OTTAWA (Reuters) - Former central banker Mark Carney won the race to become leader of Canada's ruling Liberal Party and will succeed Justin Trudeau as prime minister, official results showed on Sunday.
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 under President Donald Trump and must hold a general election soon.
Carney, 59, took 86% of votes cast to beat former Finance Minister Chrystia Freeland in a contest in which just under 152,000 party members voted.
"There's someone who's trying to weaken our economy," Carney said of Trump, spurring loud boos at the party gathering. "He's attacking Canadian workers, families, and businesses. We can't let him succeed."
"This won’t be business as usual," Carney said. "We will have to do things that we haven’t imagined before, at speeds we didn’t think possible."
Trudeau announced in January that he would step down after more than nine years in power as his approval rating plummeted, forcing the ruling Liberal Party to run a quick contest to replace him.
"Make no mistake, this is a nation-defining moment. Democracy is not a given. Freedom is not a given. Even Canada is not a given," Trudeau said.
Carney, a political novice, argued that he was best placed to revive the party and to oversee trade negotiations with Trump, who is threatening additional tariffs that could cripple Canada's export-dependent economy.
Trudeau has imposed C$30 billion of retaliatory tariffs on the United States in response to tariffs Trump levied on Canada.
"My government will keep our tariffs on until the Americans show us respect," Carney said.
Carney's win marks the first time an outsider with no real political background has become Canadian prime minister. He has said his experience as the first person to serve as the governor of two G7 central banks - Canada and England - meant he was the best candidate to deal with Trump.
The prospect of a fresh start for the Liberal Party under Carney, combined with Trump's tariffs and his repeated taunts to annex Canada as the 51st U.S. state, led to a remarkable revival of Liberal fortunes.
RALLY-AROUND-THE-FLAG MOMENT
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 building in Ottawa on Sunday, dozens of Canadians held up signs protesting Trump with no reference to domestic politics.
"There is a rallying-around-the-flag moment that we would never have predicted a year ago," said University of British Columbia politics professor Richard Johnston. "I think it's probably true as we speak that the Liberals have been saved from oblivion."
Polls though 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 Carney would call an election in coming weeks, meaning one could take place much sooner.
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 Poilievre to Trump in a recent advertisement. Poilievre in turn ramped up attacks on Carney on Sunday.
(Reporting by David Ljunggren, Promit Mukherjee and Anna Mehler Paperny; Editing by Caroline Stauffer, Mark Porter and Diane Craft)
Mark Carney has won the race to become the leader of Canada's ruling Liberal Party, succeeding Justin Trudeau as prime minister.
Carney will face a tumultuous political landscape, including a trade war with the United States and the need to call a general election soon.
Carney stated that his government will maintain tariffs on the US until they show Canada respect, highlighting the ongoing trade tensions.
Carney received 86% of the votes cast in the leadership contest, defeating former Finance Minister Chrystia Freeland.
Polls indicate that neither the Liberal Party nor the Conservatives can form a majority government, with an election required by October 20.
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