Prime Minister Mark Carney/PMO
By Kevin Lynch and Paul Deegan
April 18, 2026
On April 28, 2025, Canadians chose a new face in politics, Mark Carney, as an MP and prime minister.
This marked a significant shift from his respected career in business and central banking to taking the reins of a struggling Liberal Party of Canada and the top position in the country.
A key influence on this path was Donald Trump, who boosted Mr. Carney’s political prospects significantly. With his aggressive tariffs and attacks on global institutions like NATO, international trade regulations, and Canadian sovereignty – along with his disregard for democracy and decency – Trump made himself the main topic in the election.
The response from Canadians was clear: they supported Mark Carney. Now, one year later, the Carney government enjoys a solid lead in public opinion polls along with a fresh parliamentary majority after several defections and three by-election wins. However, the global turmoil instigated by President Trump has only intensified.
So how does Carney measure up after one year across five key areas?
Trump and Tariffs
When asked about managing relations with Trump, Carney says, “Respect but not obsequiousness.” While some of Trump’s disparaging remarks towards Canada have lessened and the rapport between leaders has improved compared to when Justin Trudeau was in office, there hasn’t been much headway on tariffs over the last year.
It remains to be seen if Carney’s approach of selective compromise-by eliminating the digital services tax and rolling back many Canadian counter-tariffs-will facilitate a new free-trade agreement with the unpredictable Trump administration.
What could that agreement entail? Will it include all three countries together or will Trump – as hinted by USTR Jamieson Greer – pursue separate agreements with Mexico and Canada? Could it be comprehensive or consist of specific deals focused on industries like steel, aluminum, or automotive? Will he push for Canada to align its policies regarding China with those of America or eliminate supply management for dairy products?
Regarding CUSMA negotiations, Carney has strengthened Canada’s negotiating team by bringing in former Clerk of the Privy Council Janice Charette as chief trade negotiator to the United States; former finance executive Mark Wiseman as ambassador; and Glenn Purves as deputy minister of international trade. Their combined expertise should be beneficial for Canada.
With just over six months until U. S. midterm elections that seem likely to favor Democrats heavily against Republicans, time may play into Carney’s hands-a positive sign for his commitment to maintain a strong economy for Canada that is sustainable and independent.
Yet Trump continues to effectively spread misleading narratives about trade benefits with Canada while corporate America appears hesitant or fearful to speak out against him-as noted by former U. S. Treasury Secretary Bob Rubin in The Wall Street Journal.
Boosting Growth and Productivity
Carney took over an economy grappling with slow growth largely reliant on high immigration levels involving low-skilled workers. His shift towards emphasizing investment rather than redistribution deserves commendation; he’s also worked to diversify markets for Canadian exports while boosting energy sales abroad. The situation around Iran has given Canadian LNG (liquefied natural gas) more leverage in Asia as well as Europe due to ongoing uncertainties regarding access through the Strait of Hormuz.
Carney is crafting options for trade and investment using Canada’s strengths such as oil production alongside LNG resources coupled with new defense spending initiatives while forming security partnerships globally. He’s traveled widely building relationships among nations that share concerns over Trump’s policies impacting global order stability.
However other regions are also actively pursuing similar strategies-the EU has wrapped up trade agreements recently with India, Mercosur countries (South American trading bloc), plus Australia-and now it’s crucial for Carney to convert shared values into tangible trade pacts swiftly.
An instance includes allowing limited imports (49 thousand) of Chinese electric vehicles at preferential tariff rates into Canada-a strategic decision since it prompted China into reducing harsh tariffs imposed on canola imports. But moving forward it should connect these EVs’ import conditions tied directly back towards manufacturing them within Canadian borders.
A different yet purely domestic form improving our trading landscape would be addressing interprovincial barriers enabling smoother internal commerce across provinces-a move suggested by IMF reports claiming this could potentially boost GDP figures upwards by seven percent! Although some minor federal hurdles have been lifted already progress within provinces appears mainly rhetorical rather than actionable; regrettably so far there hasn’t been any significant political capital invested here from within government circles either!
Pushing more natural resources through extraction channels proves vital toward enhancing economic development opportunities too! Establishing Major Projects Office right at Calgary sent strong signals reassuring Western communities while demonstrating commitment via energy MOU struck earlier alongside Alberta authorities too! Importantly though investors need confidence restored knowing regulation processes will improve since approval timelines have historically lagged behind expectations thus far causing delays frequently found frustratingly complex/unpredictable overall! Dawn Farrell leading MPO holds relevant experience-now let’s kickstart actual construction efforts underway soon!
Source linkHigh Deficits and Rising Debt Next comes arguably what presents itself greatest challenge ahead following Trump engagement-namely tackling overwhelming debt loads alongside structural deficit issues left behind predecessors who’ve added substantially onto these existing burdens without restraint whatsoever! In volatile times like ours having solid balance sheets indeed offers distinct advantages! Forecasts estimate deficits hitting $78 billion during 2025-26 gradually tapering down barely reaching $65 billion next fiscal period however concerning trends show debt-to-GDP ratio climbing up slightly hitting approximately 43% shortly thereafter while total outstanding liabilities racing toward roughly $1 trillion mark before long downline projections reveal numerous unfunded policy goals revealed earlier since unveiling October budget combined worsened global outlook further exacerbated conflict-related ramifications stemming ultimately from ongoing Iranian hostilities instigated lately! While ranking lowest net-debt measures relative amongst G7 nations our gross figures find themselves landing comfortably mid-pack resting near levels around115% GDP recorded instead! It’s critical then simply put-for Prime Minister focus squarely towards effective strategies anchored firmly onto attainable fiscal goals driving declines forward alongside backup reserves reinstated sooner rather than later! Balancing investments targeting growth opportunities must coexist harmoniously surgical cuts enacted expeditiously hence lesson learned here drawn inspiration drawn ideally emulating approaches taken previously under leadership Jean Chrétien program review aimed comprehensively achieve sustainability long-term viability future success beyond mere short-term fixes alone! Doubling Down on Defence For years we’ve lagged behind commitments honoring allies needs leaving questions arise respectability; Credit goes duly deserved making strides achieving NATO target calling upon two percent GDP expenditure early within first twelve months served effectively! Yet looming challenges remain surrounding meeting evolving benchmarks now introducing mandates aiming higher reaching five percent overall split equitably among core defense budgets security infrastructure provisions slated meet full compliance expected through completion dates set forth marking pivotal moments before year end twenty thirty-five unless we’re prepared handle pressures financially whilst outlining cohesive national security frameworks guiding expenditures therein smart utilization funds maximized effectively employed consistently across respective domains no less crucial considerations going ahead!! Security planning related Arctic regions must rank highest priority given increasing geopolitical tensions brewing between major powers involved such Russia/China/U. S.; Northwest Passage becoming ice-free annually poses unprecedented risks coupled vast mineral deposits beneath surface remain untapped certainly warrant investing capabilities defending sovereignty meanwhile responding prompt actions deterrent measures necessary detect/challenge rising influences growing concern observed recently both foreign entities alike increasingly encroaching territory diminishing trustworthiness partners willing uphold mutual obligations steadfastly despite past assurances provided openly reciprocally agreed terms reached throughout historical engagements preceding present situations facing us presently!! International Disorder The defining moment during Prime Minister’s inaugural year arrived post eloquent delivery speech presented addressed World Economic Forum hosted Davos event where he candidly articulated saying rules-based international system ceased functioning altogether deemed nothing less than historic foreign-policy discourse witnessed recently captured attention ruling elite circles worldwide alike eliciting praise positively reflecting views expressed publicly journalists noting impactful statements delivered weighed heavily observed amongst audiences watching closely closely monitoring developments transpiring daily frontiers challenging norms established relationships governing interactions shifting balance power flows unpredictably shaping perceptions realities felt globally-wide spanning multiple territories transcending geographical boundaries demonstrating ever-increasing complexities permeating fabric society today drawing attention spotlight directed upon pressing issues requiring urgent resolution fostering dialogue promoting cooperation particularly pertinent times facing us collectively together collaboratively moving forward effectively implementing ambitious objectives successfully built foundation strengthen ties forged ensuring equitable arrangements yield positive outcomes result-oriented future endeavors envisioned down road ahead! As he enters second term maintaining parliamentary support bolstered majority backing locally whilst navigating world fraught uncertainty rapidly evolving circumstances surrounding marketplace dynamics calls timely execution intended plans paramount achieving desired results focusing principles guiding choices prioritizing effectiveness propelling initiatives accomplished promptly winning momentum necessary sustaining progress achieved thus far paving pathways greater prosperity anticipated unfolding horizon awaits us gradually coming closer sighted upon arrival journey undertaken lays groundwork develop brighter tomorrow arrives inevitably soon enough forthcoming adventures venture onward embarked upon roads never travelled seeking wisdom truths encountered traversed pathways redefined experiences shared inform opinions thoughts resonating deeply held convictions enlightening minds spirits uplifting souls inspiring action movement forward setting stage continuity change welcomed warmly embraced potential unfolding limitless possibilities await discovery urging humanity unite strive thrive boldly cultivate harmony purpose driven agendas become reality realized someday very soon aligned visions culminate journeys intertwining destinies unifying collective aspirations elevate elevated perspectives bridge gaps diminish distances cultivated understanding foster empathy cherished bonds forged anew strengthening connections enduring lasting friendships created symbiotic relationships empowered reinvigorated community spirit reignite hope peace harmony reverberate heartland dreamers envision bright futures radiating optimism infusing positivity hearts desires fulfilled gently nudging future direction navigates roadmaps charted course ahead paving way towards brighter tomorrows. Kevin Lynch served previously Clerk Privy Council holding vice-chair position BMO Financial Group. Paul Deegan currently operates CEO role Deegan Public Strategies previously engaged executive positions held at BMO CN respectively.
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