Mark Carney, Former Central Banker, Sworn-In As New Prime Minister of Canada

Ottawa: Mark Carney, former Central Banker, on Friday sworn-in as the next Prime Minister of Canada. After Trudeau's departure, Carney is taking the charge of the Canadian government amid a tariff war with the United States.

59-year-old Mark Carney, a Liberal party leader, replaced Justin Trudeau who resigned earlier in January but continued as care taker Prime Minister until the former was elected to lead the country.

Finally in the office, Mark Carney may soon give a call for conducting general elections in the country, however, many opinion polls have predicted that the Liberal party may be heading for a historic defeat.

Popularity of Liberal party down

Last couple of years have remained turbulent for Justin Trudeau as his government struggled to control inflation which led to a steep rise in the cost of living, property prices, housing rentals. Assuming the office at a time when the country does not have its best cards to play, Mark Carney is likely to face some very challenging times.

How Mark Carney will deal with Donald Trump ?

It's going to be pretty interesting to see how Mark Carney will deal with the challenges posed by Donald Trump. The US President has initiated an all out tariff war with Canada and also threatened to annex the country as 51st state of the United States.

Carney has expressed his willingness to meet Donald Trump if the US President shows respect for Canada's sovereignty and is ready to take a common, comprehensive approach on the trade issue between the two nations. 

Canada vs US tariff war

In the very first days under Trump's presidency, the United States slapped heavy tariffs on Canada, adding burden to country's already crippling economy. Trump initially imposed 25 per cent tariffs on Canadian products coming into the United States. However, Ottawa retaliated and imposed reciprocal duties on American imports entering the country.

Canada's reciprocal tariff move proved disastrous for Ottawa as the Trump administration first issued a threat of increasing the tariff rate by as much percent as was being imposed by the other country. Days after issuing the threat, Trump raised the tariff rate by 50 per cent on Canadian steel and aluminium imports, before halting them one more time.