Mark Carney Elected Leader of the Liberal Party of Canada

• March 11^th, 2025
• Community

There is a lot happening on the political landscape right now,
both within Canada and in terms of our international relationships,
particularly with the ongoing impacts of the tariffs imposed by the
Trump administration and the resulting trade war. It’s important
to stay informed, and to have the voice of businesses be heard.

On March 9th, Mark Carney was elected as the new leader of Canada’s Liberal Party. As Prime Minister Justin Trudeau prepares to step down, the next steps in leadership transition are of particular importance. This information is crucial for small and medium-sized businesses in our community, as changes in political leadership can have a direct impact on the business environment, policy decisions, and economic initiatives that shape the growth and sustainability of our local economy.

Our friends at NorthGuide have provided a great summary (below) of this announcement, what happens next, the possible implications on businesses and policy, as well as a look ahead at what this could mean for our future.

Our team at the Greater KW Chamber of Commerce is working hard to keep you informed of the latest updates. As always, if you have any questions or concerns that we can help address, please email me directly.

We’re in this together.

Ian McLean
President & CEO
Greater Kitchener Waterloo Chamber of Commerce

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FROM OUR FRIENDS AT NORTHGUIDE…

On March 9, 2025, Mark Carney was elected leader of the Liberal Party of Canada, securing 85.9% of the vote in a decisive first-ballot victory. Chrystia Freeland came in second with 8% of the vote followed by Karina Gould and Frank Baylis securing 3.2% and 3% respectively. Carney will soon become Canada’s 24th Prime Minister, succeeding Justin Trudeau. His leadership comes at a critical time, with an anticipated early election and escalating trade tensions with the U.S.

Next Steps

• Transition to Prime Minister: Trudeau is expected to formally resign in the coming days, allowing Carney to be sworn in as Prime Minister.
• Carney will be invited to form a new government by the Governor General. Until this happens, Carney will be the Prime Minister-designate during the transition period.
• Janice Charette, the former Clerk of the Privy Council, is a central figure in Carney’s transition.
• Cabinet Decisions: Carney must decide whether to retain Trudeau’s cabinet for continuity or reshuffle key positions to establish his own leadership.
• In addition to the Cabinet, the PMO needs to finalize the list of Chiefs of Staff for each Minister and a core PMO team. On March 10, Carney announced that Toronto MP and former Public Safety Minister Marco Mendicino will serve as his Chief of Staff on an interim basis.
• The party will continue the nomination process leading up to the election. Carney also needs to decide who will run the national campaign for the Liberals as well as perform key roles on the campaign.
• Carney needs to decide on the riding in which he will run in the next election. Currently he doesn’t have a seat in the House of Commons and therefore cannot enter the Chamber to take part in proceedings and debates after March 24. Mark Carney could theoretically be appointed to the Senate, but it is highly unlikely and not a common practice in Canadian politics. The Prime Minister has the power to appoint senators, and Carney could take a seat in the Senate while waiting to be elected to the House of Commons. However, this would be an unusual move. The last Prime Minister to govern from the Senate was Sir John Abbott (1891-1892), and this has not happened in modern Canadian politics. Senators cannot introduce money bills (e.g., budgets), limiting Carney’s ability to govern effectively if he were in the Senate.
• Election Timing: A federal election is widely expected before Parliament returns on March 24. If Parliament reconvenes, the government could face confidence votes that may trigger an election as soon as April 28 or May 5.

Implications for Businesses & Policy

Carney’s leadership will impact economic and trade policy, with his government expected to focus on:

• U.S.-Canada Trade Relations: Stronger countermeasures against U.S. tariffs and possible emergency relief for affected industries. Carney has supported dollar-for-dollar retaliatory tariffs and has been open to the idea of reconvening Parliament in order to pass legislation to support Canadian industries affected by the trade measures, something mentioned by opposition parties like the NDP.
• Housing & Investment: Reversing the planned capital gains tax increase to encourage new housing development.
• Environmental Policy: Immediate elimination of the consumer carbon tax as a key policy shift.
• International Trade: Carney has advocated for increasing trade with like-minded partners across Asia and Europe to reduce reliance on U.S. markets. While some sectors should remain closely aligned with American interests, such as auto manufacturing, energy, and security, Carney has suggested Canada use its expertise in clean energy, critical minerals, and AI to forge new economic linkages abroad.

Looking Ahead

Carney’s next moves—whether calling an immediate election or convening Parliament—will set the tone for his government. In any case, a federal election is expected soon, as all parties have been preparing for months with candidates and campaign infrastructure in place.

If Parliament reconvenes on March 24, an election could be triggered within 48 hours if the government loses a Throne Speech confidence vote. Even if it survives, two more confidence votes (one on spending estimates and another as part of an opposition day) on March 26 could still bring down the government, likely setting an election for May 5 or 12.

However, Carney may bypass Parliament altogether and call a snap election immediately after taking office to capitalize on a Liberal polling boost and limit Conservative fundraising advantages. In that case, election day could be as soon as April 28.