Mark Carney sworn in as Canada PM, facing Trump tariffs

Ex-central banker Mark Carney has been formally sworn in as prime minister of Canada, putting him in a position to fight tariffs from US President Donald Trump that could devastate the trade-dependent Canadian economy.

In the presence of Governor General Mary Simon, the personal representative of King Charles, who is Canada's head of state, Carney took the oath of office.

He reshaped his cabinet with a view to dealing with Washington, and cut several ministerial positions that he inherited from his predecessor, Justin Trudeau.

Finance Minister Dominic LeBlanc is moving to the international trade portfolio and will be replaced by current Innovation Minister Francois-Philippe Champagne. Foreign Minister Melanie Joly stays in her post.

"We're building a government that meets the moment. Canadians expect action — and that's what this team will deliver," Carney said in a post on X.

"A smaller, experienced cabinet that moves faster, secures our economy, and protects Canada's future."

He is due to address reporters later in the day.

The moment capped a momentous rise for the 59-year-old, who becomes the first Canadian prime minister without any serious political experience.

Carney plans to travel to London and Paris next week, said a diplomat aware of the plans. Canada has sought to shore up alliances in Europe as its relations with the United States sink to unprecedented lows.

Carney crushed his rivals on Sunday in a race to become leader of the ruling Liberal Party. He replaces Trudeau, who spent more than nine years in office.

Former finance minister Chrystia Freeland, whose shock resignation last December triggered a crisis that helped push out Trudeau, becomes transport minister.

Carney, a former head of both the Bank of Canada and Bank of England, successfully argued his position as an outsider with a history of tackling crises meant he was the best person to take on Trump, who has repeatedly talked about annexing Canada.

On Wednesday, Carney told reporters that he was ready to meet Trump when "there is respect for Canadian sovereignty."

He also said he would keep in place retaliatory tariffs on US goods until the United States showed Canada some respect.

Efforts are underway to arrange a call between Trump and Carney in the next couple of days, Joly told reporters on Friday.

The cabinet will likely not be in office for long, since Liberal insiders say Carney will call a snap election within the next two weeks. If he changes his mind, opposition parties say they will unite to bring down the minority Liberal government in a confidence vote at the end of March.

Once the election is called, Carney will be very limited in what he can do politically because convention dictates he cannot make major decisions when running for office.

Opinion polls currently suggest it will be a close race with the official opposition Conservatives, with neither party gaining enough seats for a majority government.