The elevation of Mark Carney to the first job in Canada is particularly important at this time when his country is on the front line of a North American trade war. He becomes the “anti-Trump” on the doorstep of the American president.
The former governor of the Bank of England chose to rely strongly to resist the policies of Donald Trump during his speech of acceptance. He said that the American president had brought “dark days” from a “country to which we can no longer trust” and that he was “proud” of Canadians who resist the United States “with their wallets”.
While on trade specifically, Mr. Carney promised to keep the reprisal rates “until the Americans show us respect”, it was clear that the general threats against Canadian sovereignty are just as important in his thought.
Trump has repeatedly said that he would use economic power to encourage Canada to become the 51st state of the United States, but Carney retaliated. “Americans want our resources, our land, our water, our country … Canada will never be part of America in any way, form or form,” he said.
Behind the scenes, Carney encouraged a very robust response to Mr. Trump. As he told me last month in his only interview in the United Kingdom during his campaign to succeed the current Canadian Prime Minister Justin Trudeau, it was necessary to “resist a tyrant”.
He ridiculed Trump’s allegations on Canada’s participation in the fentanyl trade and the suggestion of the American president that Canada has snatched the United States. Canada’s trade deficit is caused “entirely” by its subsidized oil exports, said Carney, and “perhaps we should ask for this grant”.
He follows the traces of former Italian Prime Minister Mario Draghi as a former high -level central banker who has become a G7 leader. It is a rare path, but it can be a good timing when the neighbor closest to Canada suggested using economic power to take over.
Carney has experience in this area after having treated a certain number of acute politico-economic crises, such as the banking crash, the euro zone crisis, the clear slide of sterling after Brexit and the start of the pandemic.
He also regularly attended the G20 meetings at the level of leaders, especially in the presence of Trump, as president of the Financial Stability Board, an international economic organization. In such a meeting, the Trump team threatened to leave the International Monetary Fund.
Carney thinks Trump only respects power. From any attempt to calm Trump, he said “good luck with that”. He will concentrate other tariff reprisals on reducing increases in inflation and interest rates to the “southern neighbor” of Canada.
The Canadian elections are due by October, but Carney could appeal to it. According to this, he is in the process of welcoming Trump to Canada at the G7 summit in July.
Its ascent to higher employment increases the challenges of the United Kingdom. On the one hand, a more robust approach to an allied leader in the G7 contrasts with the United Kingdom’s attempt to close the White House closely.
On the other hand, Carney also suggested to want to diversify trade towards “more reliable” partners, who would include the United Kingdom and the EU. Canada could send its subsidized energy to Europe rather than in the United States.
The greater strategic point is that the history of Carney mean the emphasis on international solidarity and the defense of the existing multilateral system. He says that Canada can “stand up” but sees merit by creating a more coherent international alliance to concentrate the spirit of congress and prices in the Trump administration.
The new management of Canada awaits the support of its Commonwealth ally, the United Kingdom. After my recent interview with him, Carney turned the camera to the portrait on the wall of the office he was talking about: King Charles. The message was clear. Canada and the United Kingdom should be on the same side in this new world era.
