Mark Carney’s Vision to Reshape Canada’s Future

Photo via Cole Burston, New York Times

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The past six months of Canadian politics have fundamentally altered Canada’s domestic policy and its global position. The Liberal Party of Canada’s victory in the Canadian federal election in April 2025 was almost unthinkable, even just a few months prior. Following a nine-year term in office and growing unpopularity driven by an increasing cost of living, Canadian Prime Minister Justin Trudeau resigned in January. His successor, former executive and central banker Mark Carney, called for a parliamentary general election on April 28th, while the Conservative Party of Canada, led by Pierre Pollivere, held a commanding lead in the polls.

Pollivere was able to paint Trudeau as out of touch and unable to deal with the economic crises affecting Canadians, and this rhetoric was largely successful—until the newly elected United States President, Donald Trump, began to discuss Canada. Donald Trump’s repeated assertion that Canada could “become the 51st state” and new tariffs on Canadian goods have sparked a renewed sense of patriotism and a desire to protect sovereignty among Canadians.

These actions led to a historic low point in modern relations between the U.S. and Canada, with Canadian automobile traffic returning from the U.S. dropping by over 31 percent, and 43 percent of Canadians now seeing the U.S. in an adversarial light. This turned one of Pollivere’s biggest strengths—linking himself to the electorally successful conservative President of Canada’s historical ally —into one of his biggest weaknesses. Carney was able to label Pollivere as someone who was unable to prioritize the interests of Canadians.

The mandate from voters was clear: protect Canadian sovereignty. Prior to the election, Carney emphasized, “the old relationship we had with the United States, based on deepening integration of our economies and tight security and military cooperation, is over.” To achieve a renewed economic independence, the Liberal majority in Parliament broke from previous governments in passing laws supporting internal trade within Canada, and promoted a “Buy Canadian” policy in order to make the country less dependent on imports. While it is unlikely Canada could entirely become self-sufficient, the rhetorical and policy shift from Carney shows a significant departure from previous emphasis on free trade.

Carney has not only departed from the rhetoric of previous prime ministers on trade, but he has also diverged from the stance of previous Liberal prime ministers on environmental issues. Despite previously being a staunch advocate for transitioning to green energy, Carney has seen the electoral perils of prioritizing the fight against climate change above the cost of living crisis experienced by Trudeau. So far, Carney has eliminated a carbon tax, halted a 2035 electric vehicle sales mandate, and approved a natural gas export facility in British Columbia. The shift away from the post-pandemic policy focus on climate change amid concerns over the cost of living is similar to the U.S. and may reflect poorly on governments’ ability to weather crises while maintaining public support for transitioning to green energy.

The foreign policy of the Carney government has also demonstrated a larger emphasis on military preparedness than in the policies of his predecessors. In June, Carney stated the Canadian Armed Forces would meet the two percent of gross domestic product invested in military spending mandated by their membership in the North Atlantic Treaty Organization (NATO) this year, as NATO faces growing aggression from Russia. On October 2nd, Carney announced the creation of the Defense Investment Agency, which aims to modernize the defense procurement process and increase Canada’s domestic industrial investment and production, aligning with his government’s shift in economic policy. The Agency will also align closely with the United Kingdom, Australia, and France, reflecting Canada’s shift in foreign policy towards more reliable geopolitical partners.

However, the new government is not without challenges. Canada’s economy continues to stagnate, with the country locked in trade disputes with its two largest trading partners, the U.S. and China. Despite the ongoing economic challenges, Carney continues to poll well, with a recent poll showing the highest approval rating for a Liberal government in almost a decade at 58 percent. This suggests that voters are willing to give him time to grow the economy, while he currently takes tangible steps to increase Canadian self-sufficiency and protect their sovereignty.

In nearly the first six months of the new government, Carney has already made a dramatic shift in policy away from his predecessors, and could point to future priorities among Canadian leaders. It is not dissimilar to many sentiments in the U.S. that argue investing in domestic production, rolling back environmental regulation, and increasing military spending are necessities in an increasingly unpredictable geopolitical landscape. In a short turn of events, Mark Carney went from potentially being one of Canada’s shortest-serving prime ministers to having the opportunity to leave an indelible mark on history.

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This article was edited by Amethyst Stencik and Kaelen House.