After more than nine years in office, Justin Trudeau has resigned as Prime Minister of Canada and handed the keys to the country over to Mark Carney, a high-profile economist and former Governor of the Bank of Canada and the Bank of England. His election as leader of the Liberal Party and subsequent appointment as Canada’s 24th Prime Minister is an important moment in the country’s political history. With economists growing increasingly concerned with the global economic outlook, especially on the back of trade frictions with the United States under Donald Trump, Carney’s standing as an expert in finance has marked him as a steadying influence in a tumultuous time. His appointment signals a turn toward technocratic values, at a time when Canada must focus on what it means to be credible in a changing, unpredictable fiscal context where geopolitics may play out.
Major policy achievements during Trudeau’s run, which started in 2015, included legalizing cannabis, implementing a national carbon pricing policy, and negotiating key bi- and trilateral trade agreements like the Canada-United States-Mexico Agreement (CUSMA). His government also rolled out social programs such as the Canada Child Benefit and a national childcare program designed to lift children out of poverty and make early education more affordable. However, his leadership was not without controversy. Approval ratings at home plummeted as inflation surged, a housing crisis emerged, and divisions within the party broke out. Meanwhile, economic tensions inched higher after Trump slapped a 25 per cent tariff on Canadian imports that led to a tit-for-tat response by Trudeau’s government. These woes, in addition to increasing public dissatisfaction, ultimately forced Trudeau to step aside, providing an opportunity for the Liberal Party to relaunch under new management.
But for all the gravity of his leaving, Trudeau’s final moments in office were not without a trademark touch of levity. An image of him walking out of Parliament on March 10, 2025 — with the chair under one arm and his tongue stuck out in jest — caught the public eye in a candid moment. Some considered the moment a testament to Trudeau’s charm and relatability; others saw it as emblematic of his occasionally overly relaxed style of leadership. It was, in any case, an apt distillation of his tenure: a leader who mixed serious governance with personal and sometimes idiosyncratic style.
As Trudeau steps aside, Carney presents a very different leadership profile. As the only person to have served as the Governor of the central banks of two G7 countries, he is historically placed as an eminent economist. During the 2008 financial crisis, his strong actions as Bank of Canada governor — cutting interest rates and keeping liquidity flowing — helped Canada recover more quickly than most of its peers. He was appointed Governor of the Bank of England in 2013 and worked swiftly to calm financial markets during the turbulence around Brexit. Now, in his capacity as prime minister, Carney’s crisis management experience is widely seen as an invaluable asset for confronting domestic and international economic challenges alike.
His elevation to Liberal leader wasn’t only a matter of his own credentials but also a response to Canada’s political moment. The Liberal Party’s choice to favor a technocrat over a politician in the traditional sense signifies an embrace of the data-driven, expert-based form of governance. Public mood has also been critical — Canadians are searching for a leader who can offer financial stability and long-term economic growth amid continuing trade disputes and signs of economic turbulence. Carney’s non-partisan credentials and crisis-tested leadership provide some comfort, but with no prior experience in or proximity to politics, doubts about how he’ll approach coalition-building, public engagement and legislative negotiations have arisen.
Carney’s influence in shaping Canada’s global role, as well as its standing within the Liberal Party, is widely expected to be significant. His economic pragmatism and emphasis on fiscal responsibility have the potential to alter the party’s focus and, some fear, may redirect it toward more moderate policies. North of the border, his steadfast commitment to defending Canada’s sovereignty, from external pressures — particularly from the US — is a clear signal of where he intends to go on issues of economic independence and diversification. His dream of diversifying Canada’s trade relationships beyond the United States may lead the country to engage more with the European Union and other global markets as alternative partners to reduce dependence on a single market.
Carney immediately inherits complex and urgent problems as he takes office. The paramount of these concerns is an increasingly aggressive trade conflict with the US that has weighed down Canada’s export-sensitive economy. Trump’s tariffs have spurred domestic economic uncertainty, raising calls for tougher negotiation tactics and trade diversification. In addition to outside pressures, Carney will have to confront internal economic issues, such as poor growth, inflation, and housing affordability. While Carney aligns ideologically with the Liberal Party, his reputation as a policy expert rather than a seasoned politician suggests he may need time to adapt to the dynamics of political life, build public support, and manage internal party challenges.
On the eve of his departure from politics, Trudeau addressed the nation, sharing his thoughts on his time in office and the strength of Canadians while calling on the people to stay true to democracy and unity. “I am so proud of Canadians. I’m proud to have served a country full of people who stand up for what’s right, rise to every occasion, and always have each other’s backs when it matters most,” he said in his farewell message. His comments highlighted the importance of solidarity and collaboration going forward under a new government.
The switch from Trudeau to Carney marks one of the most massive political turnovers in modern Canadian history. It represents a clear break from personality-driven leadership to an emphasis on economic expertise and crisis management. Although Carney is well-respected for the financial skills he developed in previous jobs, his capability to govern and engage with the public remains to be seen. With a new governing season upon us in Canada, observers are listening closely with good reason, eager to see if his tenure on the driver’s seat can usher in economic stability, reinvigorate national sovereignty, and guide us smoothly through the trials and tribulations of both domestic and international politics.