Mark Carney sworn in as Canada’s prime minister and prepares to fight Trump tariffs

‘We’re building a government that meets the moment’: Former central banker reshapes cabinet to deal with Washington

Mark Carney gestures to his cabinet minister after being sworn in as prime minister of Canada at Rideau Hall in Ottawa. Photograph: Spencer Colby/EPA
Mark Carney gestures to his cabinet minister after being sworn in as prime minister of Canada at Rideau Hall in Ottawa. Photograph: Spencer Colby/EPA

Ex-central banker Mark Carney was formally sworn in as prime minister of Canada on Friday, putting him in a position to fight tariffs from US president Donald Trump that could devastate the trade-dependent Canadian economy.

In the presence of governor general Mary Simon, the personal representative of King Charles, who is Canada’s head of state, Mr Carney took the oath of office.

He reshaped his cabinet with a view to dealing with Washington, and cut several ministerial positions that he inherited from his predecessor, Justin Trudeau.

Finance minister Dominic LeBlanc is moving to the international trade portfolio and will be replaced by current innovation minister Francois-Philippe Champagne. Foreign Mminister Melanie Joly stays in her post.

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“We’re building a government that meets the moment. Canadians expect action – and that’s what this team will deliver,” Mr Carney said in a post on X. “A smaller, experienced cabinet that moves faster, secures our economy, and protects Canada’s future.”

The moment capped a momentous rise for the 59-year-old, who becomes the first Canadian prime minister without any serious political experience.

Mark Carney profile: Canada’s crisis-fighting central banker to lead country through US trade warOpens in new window ]

Mr Carney plans to travel to London and Paris next week, said a diplomat aware of the plans. Canada has sought to shore up alliances in Europe as its relations with the United States sink to unprecedented lows.

Mr Carney crushed his rivals last Sunday in a race to become leader of the ruling Liberal Party. He replaces Mr Trudeau, who spent more than nine years in office as prime minister.

Former finance minister Chrystia Freeland, whose shock resignation last December triggered a crisis that helped push out Mr Trudeau, becomes transport minister.

Mr Carney, a former head of both the Bank of Canada and Bank of England, successfully argued his position as an outsider with a history of tackling crises meant he was the best person to take on Mr Trump, who has repeatedly talked about annexing Canada.

Mr Carney has Irish roots and held both Irish and British passports, but said earlier this month he had written to the British and Irish governments to begin the process of renouncing his citizenship of both countries.

On Wednesday, Mr Carney told reporters he was ready to meet Mr Trump when “there is respect for Canadian sovereignty”.

Trump walks back latest double tariff threat on Canadian steel and aluminiumOpens in new window ]

He also said he would keep in place retaliatory tariffs on US goods until the United States showed Canada some respect.

Efforts were under way to arrange a call between Mr Trump and Mr Carney in the next couple of days, Ms Joly told reporters on Friday.

The cabinet will likely not be in office for long, since Liberal insiders say Mr Carney will call a snap election within the next two weeks. If he changes his mind, opposition parties say they will unite to bring down the minority Liberal government in a confidence vote at the end of March.

Once the election is called, Mr Carney will be very limited in what he can do politically because convention dictates he cannot make major decisions when running for office.

Opinion polls suggest it will be a close race with the official opposition Conservatives, with neither party set to gain enough seats for a majority government. − Reuters