Mark Carney has officially taken over as leader of Canada’s Liberal Party, securing his position after a fierce, months-long battle to replace Justin Trudeau. With a looming federal election that could happen anytime before October, Carney now faces an uphill fight against Conservative leader Pierre Poilievre, whose party currently leads in the polls. But before he even gets to the election, he has a much bigger fight on his hands—a full-scale trade war with the United States. Tensions between Canada and the U.S. have reached a boiling point under President Donald Trump, who has repeatedly accused Canada of fueling illegal immigration, dumping fentanyl into the U.S., and even threatened to turn the country into America’s 51st state. In response, Carney made it clear in his first speech as party leader that his government will hit back hard. “We will create new trading relationships with reliable trading partners,” he said at the Liberal Party convention on Sunday, adding that retaliatory tariffs on the U.S. will remain in place “until the Americans show us respect.” Carney refuses to back down in economic war Carney didn’t hold back in his first major address, calling Trump’s aggressive tariff policies a direct attack on Canadian families, workers, and businesses. “He’s attacking Canadian families, workers, and businesses, and we cannot let him succeed—and we won’t,” he said. “In trade, as in hockey, Canada will win. Canada will destroy America.” Despite Carney’s tough stance, he will have to navigate a complicated political landscape. Trudeau, while stepping down as leader, will remain Prime Minister for an undisclosed transitional period, giving Carney time to settle in. But with an election approaching, his challenge isn’t just Trump—it’s also Poilievre, who has made a name for himself by distancing himself from Trump, despite previous comparisons to the U.S. president. “I am not MAGA,” Poilievre told reporters at a press conference last Tuesday. He added that: “Working for Trudeau, Carney made Canada weaker and poorer; working for himself Carney made the United States richer and stronger.” Trudeau, for his part, said last week: “And now, as Canadians face from our neighbor an existential challenge, an economic crisis, Canadians are showing exactly what we are made of.” Anyway, as the trade war intensifies, the impact on global markets has been swift. Just last week, the U.S. imposed new 25% tariffs on imports from Mexico and Canada, only to reverse course two days later, exempting some products. At the same time, Trump doubled tariffs on Chinese imports to 20%, prompting Beijing to retaliate with taxes on U.S. farm products. Meanwhile, Canadians at NHL and NBA games have been booing the U.S. national anthem and staging protests to show solidarity for their country. Trump Cabinet dismisses recession talk Trump refused to say whether the U.S. economy is heading for a recession, calling it a “period of transition.” In an interview with Fox News, he said, “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.” His Commerce Secretary, Howard Lutnick, went further, telling NBC on Sunday that there would be no recession, even as prices continue to rise. “Foreign goods may get a little more expensive,” Lutnick admitted. “But American goods are going to get cheaper.” Investors aren’t convinced. Wall Street stocks have fallen as the market struggles to react to Trump’s sudden policy shifts. New tariffs from China targeting U.S. agricultural products—including chicken, beef, pork, wheat, and soybeans—went into effect today, with an additional 10 to 15% tariffs added to U.S. exports. The ongoing trade battles have left analysts questioning just how far Trump is willing to go in his fight against Canada, Mexico, and China. While Trump has insisted that these countries haven’t done enough to stop illegal drugs and migrants from entering the U.S., all three have rejected the accusations outright, and so the battle drags on. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
