How Canada’s new PM took office amid Trump’s threats and a risk of territorial losses
Following his election victory, Canada’s new Prime Minister Mark Carney faced a daunting challenge.
He needed to quickly become a leader who thinks like a banker, speaks like a diplomat, and acts like a crisis manager.
Read more about the complex problems Canada now faces and the first steps of its new prime minister in the article by Dmytro Sherenhovskyi of Ukrainian Catholic University: Trump, separatists and reforms: the challenges facing Canada’s new Prime Minister.
Mark Carney launched negotiations with US President Donald Trump after the election.
The talks began amid a 25% tariff imposed by the US in March on most Canadian goods.
In response, Canada introduced retaliatory tariffs worth $43 billion, targeting primarily Republican-supporting US states.
Carney’s government also announced $30.9 billion in defence investments to meet NATO commitments and reduce dependence on American military technology.
The first meeting on 6 May went relatively well, at least, as well as talks with the current US president can go.
Carney made it clear: Canada is not for sale, neither literally nor figuratively.
He maintained a tough stance toward Canada’s neighbours, even publicly criticising the UK, whose response to Trump’s threats against Canada "failed to impress" Canadians.
Media later reported that Carney and Trump also discussed the war in Ukraine and prospects for peace talks.
Under the new government, Canada continues its course of supporting Ukraine, including asserting this policy directly to the US president.
But even without Trump, Carney’s early weeks in office have not been without controversy.
In Alberta, a separatist movement has gained traction in response to federal climate policies and economic challenges.
Signature collection for a referendum is underway, and it is likely to succeed in meeting the legal threshold.
While the vote is expected to fail, the process alone could destabilise domestic politics and heighten tensions between Edmonton and Ottawa.
Despite some stabilisation in US-Canada relations, the country’s economy remains under pressure.
The top priority for Carney’s government is to halt the economic downturn.
That’s why trade diversification and internal economic stimulus are being prioritised.
This focus is reflected in Carney’s cabinet lineup, which includes around ten new ministers. Though the government is only partially reshuffled, its orientation is clear.
A major review of public spending is underway, aimed at improving government efficiency through automation of routine tasks (including AI-driven solutions) and consolidation of overlapping programmes and grants.
The goal is to cut the annual growth of public spending from 9% to 2%, aiming for a balanced budget by 2028.
Carney has navigated his first weeks in office successfully.
Public trust and approval of Carney and his government remain high, but early victories are needed to maintain this support.