​Carney wins power, but showdown with Trump looms over Canada’s future

​Canada’s Prime Minister Mark Carney walks back his office in Ottawa, Ontario, Canada, on April 29, 2025.

Canada’s Prime Minister Mark Carney speaks with members of the media as he walks into his office after the Liberal Party staged a major political comeback to retain power in parliamentary elections, in Ottawa, Ontario, Canada, on April 29, 2025.

REUTERS/Jennifer Gauthier

Prime Minister Mark Carney may have won the battle for power in Canada, but his country’s war of words with US President Donald Trump is only just beginning. And before that all begins, the Liberal leader must form a government.

Carney has options. The Liberal Party is projected to fall just three seats shy of a majority. Even so, the former Bank of England and Bank of Canada governor is unlikely to seek a confidence-and-supply agreement, according to Eurasia Group senior analyst Graeme Thompson, even though Bloc Quebecois offered him a “truce.”

“If the Liberals fall short of a bare majority, they will be in a strong enough position to govern with a minority government, seeking ad hoc support from the NDP and Bloc Quebecois on specific issues,” Thompson said.

The elephant in the room. Once Carney forms a government, his principal test will be dealing with Trump. The aim for Carney, per Thompson, will be “to secure tariff-free (or at least low-tariff) access to the US market,” and the White House’s more dovish tone on trade over the last week suggests there might be an opening. The pair agreed to meet in person some time in the near future, according to a readout from the prime minister’s office, which comes after Carney insisted on Monday that he would only visit Washington to discuss trade agreements when there was a “serious discussion to be had.”

Ian Bremmer examines the future of the US-Canada relationship in his latest World in:60 here.

What’s next for Pierre Poilievre? The Conservative leader lost his own seat – a verdict that would consign you to reality television if you were in the United Kingdom. But he also led the Tories to their largest popular vote share since 1988, and expanded the right-wing coalition, so his political future may not be dead yet.

“He’s humbled,” Thompson said, “but likely to stay on to fight another day.”

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