Carney talks tough on Trump threat - but can he reset relations? - Voice of Asia

Mark Carney's sweeping victory in the race to succeed Justin Trudeau as Prime Minister of Canada not only made him the leader of the Liberal party but also, logically, the next Prime Minister of Canada. This is a remarkable outcome for someone with relatively little political experience, considering he has never been elected as a Member of Parliament, let alone held a cabinet position. This swift ascent speaks volumes about the current political climate and the perceived need for experienced leadership.

However, Carney does possess a wealth of experience. He served as the Governor of the Bank of Canada during the global financial crisis and as the Governor of the Bank of England during the Brexit negotiations. These roles allowed him to accumulate extensive global financial experience during times of economic turmoil. Carney believes that this experience could prove invaluable in the current situation, offering a steady hand during uncertain times.

Canada's political landscape has been dramatically reshaped by U.S. President Donald Trump's trade war and threats to turn Canada into the 51st state of the United States. Speaking to Liberal supporters after the leadership results were announced on Sunday night, Carney pledged to confront Trump directly on his threats regarding tariffs and assertions against Canadian sovereignty. His strong stance resonated with many Canadians concerned about the country's future.

Carney emphasized, "Canada will never be part of the United States in any way, shape, or form. We didn't start this fight, but Canadians are always ready to finish it when someone else starts it." He warned, "Americans shouldn't make any mistake, in trade, as in hockey, Canada will prevail." He repeatedly mentioned the U.S. President by name, stating that his government would maintain retaliatory tariffs until "the United States shows us respect." This firm approach signals a willingness to stand up to American pressure.

However, how Carney will translate his tough talk on the Ottawa stage into practical solutions to address these dual challenges is far less clear. Liberals may hope that Trudeau's departure itself helps to de-escalate the situation. They might dare to believe that Carney will at least be able to reshape the personal relationship with Trump, rather than being mocked as a "weak" leader, as Trump often derided Trudeau. On the other hand, if he must struggle for concessions, will he also risk provoking someone who has made unpredictability a political art form? Much depends on how determined the U.S. President is to inflict real economic pain on Canada and annex its territory, a question that remains difficult to answer.

After Carney accepted the party's nomination, I interviewed Jean Chrétien, who served as Prime Minister of Canada for a decade starting in 1993 and had earlier taken the stage to speak. I asked him if he thought Trump was serious. "You know, I don't know," he told me. "Do you know? Does anybody know? I'm not a doctor or a psychiatrist. He changes his mind every two or three hours. So (him) being the leader of the free world is a worry for everybody." This uncertainty reflects the global anxiety surrounding Trump's leadership style.

While the threat posed by the United States dominates Canadian politics – Carney described the current situation as "dark days brought on by a nation we no longer trust" – there are still domestic political affairs that demand attention, particularly the prospect of a general election. Once sworn in as Prime Minister in the coming days, Carney will have to decide whether to call an early election. If he does not, opposition parties in Parliament may force an election later this month through a vote of no confidence. This decision will shape the immediate political landscape.

Prior to Trudeau's announcement of his resignation, the Liberal party was facing electoral defeat. After nine years in power, he had become a liability and a lightning rod for public anger over rising living costs, despite record government spending and ballooning national debt. The Conservative party, under the leadership of young populist Pierre Poilievre, appeared poised to oust the Liberals, turning the bashing of Trudeau into a movement. Now, Poilievre has not only lost the advantage of having a deeply unpopular opponent, but his political style also risks appearing out of step with the times. Even a slight perceived alignment with Trump's political positions could be a potential liability for Canadian voters in the current environment. The Republican president recently suggested that the Canadian Conservative leader was not "MAGA" (Make America Great Again) enough.

The Liberal party has suddenly sensed a feeling of revival – the gap with the Conservatives in the polls, once large, has narrowed significantly. You could feel that palpable sense of optimism in the room on Sunday night. Sensing the danger, Poilievre accused the Liberals of "trying to fool Canadians" into electing them for a fourth time. But his statement also highlighted how Trump has changed the political messaging on the Canadian side. "It's this Liberal team that raised taxes, housing costs, and food prices, while Carney personally profited from moving billions of dollars and thousands of jobs from Canada to the United States," Poilievre wrote. "We need a new Conservative government that puts Canada first – for a change." The shift in rhetoric reflects the heightened political tensions.

Trump's election has served to unite Canada under its flag and propel a former central banker – the epitome of the country's political elite – to the country's highest office. The Conservatives may still lead in the polls, but Liberals believe for the first time in a long time that, under Carney's leadership, they once again have a chance to win. This renewed sense of hope underscores the unpredictable nature of Canadian politics in the Trump era.