The former central bank chief takes over at what he has called a “time of great consequence” for Canada, with Trump attacking its sovereignty and economic security.

Carney, 59, replaces Prime Minister Justin Trudeau, who announced his resignation in January but remained in power until the Liberal Party elected a new leader. Carney is widely expected to trigger a general election in the coming days or weeks.

Commerce Secretary Howard Lutnick said President Trump’s tariffs are “worth it” — even if they trigger a recession. Economists have warned that the president’s stiff tariffs on Canada and Mexico, which are on a 30-day pause,

Canada's retaliatory tariffs as a permanent policy tool are economically counterproductive and may slow the implementation of climate initiatives.

After a fresh wave of tariffs from the United States, Canada and the European Union said they would impose billions in levies on U.S. goods.

To date, Trump’s tariffs have targeted Canadian goods that include steel, aluminum, energy and the auto industry. After threatening a 50% tariff early last week on the country’s steel and aluminum, he reduced it to 25% days later after Canada retaliated, then pushed to April 2 the full 50% tariff.