Canada's Liberals will elect new leader to replace Trudeau as country deals with Trump's trade war

Canada's governing Liberals will announce a replacement for Prime Minister Justin Trudeau on Sunday as the country deals with U.S. President Donald Trump's tariff threats and as a federal election looms.

Liberal Party members look set to pick former central bank governor Mark Carney as the new party leader and Canada's next prime minister in a vote to be announced on Sunday evening.

Carney, 59, navigated crises when he was the head of the Bank of Canada and when in 2013 he became the first noncitizen to run the Bank of England since it was founded in 1694. His appointment won bipartisan praise in the U.K. after Canada recovered from the 2008 financial crisis faster than many other countries.


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The opposition Conservatives hoped to make the election about Trudeau, whose popularity declined as food and housing prices rose and immigration surged. Trudeau announced his resignation in January, but remains prime minister until a successor is chosen and sworn in. Election laws mandate a general election before the fall, but one is expected this spring.

Trump's trade war and his talk of making Canada the 51st U.S. state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.

The surge in Canadian nationalism has bolstered the Liberal Party's chances in a parliamentary election expected within days or weeks, and Liberal showings have been improving steadily in opinion polls.

After decades of bilateral stability, the vote on Canada's next leader now is expected to focus on who is best equipped to deal with the United States.

Carney has picked up one endorsement after another from Cabinet ministers and members of Parliament since declaring his candidacy in January. He is a highly educated economist with Wall Street experience who has long been interested in entering politics and becoming prime minister, but he lacks political experience.

The other top Liberal leadership candidate is former Deputy Prime Minister Chrystia Freeland. Trudeau told Freeland in December that he no longer wanted her as finance minister, but that she could remain deputy prime minister and the point person for U.S.-Canada relations. Freeland resigned shortly after, releasing a scathing letter about the government that proved to be the last straw for Trudeau.

The new leader is expected to trigger an election shortly afterward. Either the new Liberal party leader will call one, or the opposition parties in Parliament could force one with a no-confidence vote later this month.