The former central bank governor will have to deal with tariff threats from US President Donald Trump and face the opposition Conservatives in the upcoming election.

Mark Carney, the former central bank governor, was announced as the new leader of Canada’s ruling Liberal Party on Sunday and will become the country’s next prime minister.

Carney won 85.9% of the ballots cast in the Liberal Party leadership vote, according to the final tally. 

He succeeded Justin Trudeau, who announced his resignation in January after more than nine years in office. 

The new Liberal leader will become prime minister in the coming days, ending the Trudeau era. However, given the Conservatives’ slight lead in the polls, the Liberals’ time in power may be limited.

Carney will need to decide when to call a general election, which must be held no later than October 20.

Carney says US must show Canada respect 

Carney, who previously led the Bank of Canada and the Bank of England, will first have to contend with tariff threats from US President Donald Trump.

Trump has repeatedly spoken about annexing Canada and has imposed on-again, off-again tariffs, threatening bilateral trade—the lifeblood of the country’s economy.

Trump is “attacking Canadian workers, families, and businesses. We can’t let him succeed,” Carney said. 

His predecessor imposed retaliatory tariffs on the US in response to the tariffs that Trump imposed on Canada.

“My government will keep our tariffs on until the Americans show us respect,” Carney said. He also added, “America is not Canada and Canada never ever will be part of America in any way, shape, or form.” 

Trump’s tariffs against Canada, Mexico come into force

In his farewell address to the party, Trudeau warned that Canada faces an “existential challenge” from the US. 

He said the country was facing a “nation-defining moment.” 

“Democracy is not a given, freedom is not a given, even Canada is not a given,” Trudeau said.

Canada’s general election must be held by 20 October

Mark Carney will be the first Canadian prime minister with no political experience, having never held an elected public office or served in cabinet.

He worked as a Goldman Sachs executive before being appointed deputy governor of the Bank of Canada in 2003 and governor in 2008.

In 2013, British prime minister David Cameron appointed him to lead the Bank of England, making Carney the first non-Briton to head the bank in its over 300-year history.

In 2020, he began serving as the United Nations’ special envoy for climate action and finance.

He will now lead the Liberals into an election that he is expected to trigger soon. An election must be held by October 20.

“The Liberal party is united and strong,” Carney said in his speech on Sunday.