Saturday, August 2, 2025

Canada Liberals to announce Trudeau’s successor in midst of US trade war

Date:

Canada’s Liberal Party will on Sunday announce Prime Minister Justin Trudeau’s successor as both party chief and head of the country’s government in the midst of a trade war with the United States that could cripple the Canadian economy.The next prime minister will have to negotiate with US President Donald Trump as he threatens additional tariffs on Canada and may soon face the opposition Conservatives in a general election.

Trudeau announced in January he would step down

after more than nine years in power as his approval rating plummeted, forcing the ruling Liberal Party to run a quick contest to replace him.
Former central banker Mark Carney is the front-runner, with the most endorsements from party members and the most money raised among the four Liberal candidates.Around two-thirds of Trudeau’s cabinet publicly back Carney, and a Mainstreet poll in late February showed Carney with 43% support among Liberals compared to 31% for his main rival, former Finance Minister Chrystia Freeland.

Freeland has touted her experience negotiating with Trump during his first term but has struggled to differentiate herself from Trudeau after being one of his most loyal supporters for years.

She left his government in December after Trudeau tried to replace her, and she criticised his government’s spending policies.

A victory for Carney, 59, would be the first time an outsider with no real political background has become Canadian prime minister.

Also read: Who can replace Justin Trudeau as Canadian PM? A look at the top five candidates

Carney has said his experience as the first person to serve as the governor of two central banks — Canada and England — meant he was the best candidate to deal with Trump.

Some 400,000 Liberal members were eligible to cast their votes for party leader. The party is due to announce the first round of results at about 6.30 pm (10.30 pm GMT, or 3.30 am IST on Monday).

During the campaign, Carney said he supported dollar-for-dollar retaliatory tariffs against the United States and a coordinated strategy to boost investment. He has repeatedly complained that Canada’s growth under Trudeau was not good enough.

The prospect of a fresh start for the Liberal Party under Carney, combined with Trump’s tariffs and his repeated taunts to annex Canada as the 51st U.S. state, led to a remarkable revival of Liberal fortunes.

Regardless of who wins, the next prime minister has important decisions to make right away. The minority Liberal government may face a confidence vote when Parliament reconvenes at the end of March, potentially triggering an election.

He or she may therefore decide to call an immediate election, avoiding the trouble of having to put together a cabinet. An election must be called no later than October 20.

Also read: India in talks to reduce tariffs in bilateral trade agreement with US: Sources

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