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Why Mark Carney’s victory won’t heal the US-Canada rift
Ian Bremmer shares his insights on global politics this week on World In :60.
Mark Carney leads the Liberals to victory in Canada. So, what's next for the US-Canada relationship?
I think sometimes you have relationship with somebody, and they do something that shocks you, you can't unsee it, I think US-Canada is like that now. I think the damage is permanent. Of course, the interdependence is immense. The dependence on the Canadian side is higher. They're a much smaller country. Their population is right next to the United States. Just a thin strip there. So, it's not like you can suddenly decouple, but there's going to be a lot of de-risking. So, strong efforts, very tough negotiations coming on trade and on security, but also an effort to build infrastructure and ship Canadian resources away from the United States, towards other countries around the world. Medium-term, that's going to be a pretty significant change in how we think about Canada.
The conclave will pick the next pope. How is it relevant for the wider geopolitical landscape?
It's relevant because, increasingly, political leaders do not inspire. So, here you have a population as large as any country, about 1.4 billion Catholics all over the world, just like India, just like China. That's the size of the global population. If the next pope that is picked is someone who is inspirational, is someone that is seen as a 21st century leader that can reflect sensibilities and ideology, values that are not seen from political leaders around the world, in your own countries, then the ability to have an impact on what gets young people out, and motivated, and inspired and engaged in public service or on the streets, and mobilized, and demonstrating becomes significant. So, I do think there's a real opportunity here, but we'll see what it means when we finally see white smoke coming out of the Vatican.
What Canada’s main parties are running on in upcoming election
Canada’s 45th general election is less than two weeks away, and the nation faces a fraught political climate fueled by President Donald Trump’s tariffs and annexation threats towards the country. The election's outcome could have far-reaching impacts on Canada’s future and position in a fragmenting world. In an exclusive interview, GZERO’s Tasha Kheiriddin sits down with Eurasia Group‘s senior advisor John Baird and Vice Chairman Gerald Butts to unpack what’s at stake in Canada’s election, including key political players and the strategies behind their campaigns.
Butts, former principal secretary to Prime Minister Justin Trudeau and a key Liberal strategist, says Carney is seeking a public mandate after taking over during Canada’s longest-running minority Parliament. Baird counters that Carney aims to ride early popularity and break from the Trudeau legacy.
Despite clear ideological divides, both Butts and Baird agree on one point: Canada needs a strong majority government. Baird warns that, “when you have such a small number of Members of Parliament, it’s like the tail wagging the dog,” expressing concern over the instability of minority rule. Butts echoes the sentiment, stating the country would be “far better served by a strong government of either political stripe.”
With Canadians heading to the polls, the world will be watching closely. The 2025 Canada election could determine not just the nation's economic path but its place on the global stage.
Watch full interview: Canadians head to the polls — and into the Trump vortex
Special interview: Canadians head to the polls — and into the Trump vortex
With just over a week until the Canadian election, GZERO’s Tasha Kheiriddin sat down with two senior advisors at Eurasia Group to get their take: Vice Chairman Gerald Butts, who is a former advisor to Liberal Prime Minister Justin Trudeau, and John Baird, former Cabinet minister under Conservative Prime Minister Stephen Harper.
Here’s what they had to say:
Why is Canada in an election campaign? “The prime minister needed a mandate from the people, not just his party,” said Butts, referring to newly minted PM Mark Carney, who took over from Trudeau in March.
Baird was more blunt: “Carney wanted to separate himself from the NDP–Trudeau era.” Which he seems to be doing: Under his watch the Liberals have soared nearly 20 points in the polls and are currentlypredicted to form a government.
Who are the main players? Carney, the former governor of the Bank of Canada and the Bank of England, presents “a safe, fiscally responsible concept” in Butts’ view. His main rival, populist Conservative leader Pierre Poilievre, brings “a fresh approach” according to Baird, who served with Poilievre in Parliament. He sees Poilievre as “best able to speak to US President Donald Trump and his administration.”
What’s really on the ballot? Themain issue is who can most effectively deal with Trump, whose tariffs and musings about making Canada the “51st state” have enraged Canadians. So far, voters givetop marks to Carney on that question. But whichever party wins, Butts and Baird agree that the next PM faces a hostile White House. “We’re starting from scratch,” warned Butts, citing the breakdown in what used to be one of the world’s closest bilateral relationships.
Minority or majority? Both men think that a minority government would be a bad outcome. “You don’t want to be checking in with a party leader with 8% in the polls before talking to the president of the United States,” said Butts, referring to Canada’s smaller parties, the NDP and Bloc Québécois. “It’s the tail wagging the dog,” added Baird.
Advice to the next PM for dealing with Trump? “Don’t get ‘Zelenskied’ — and be prepared,” they agreed. And to the victor go the spoils, even if that victor will take over at one of the most fraught moments in Canada’s history.
“The worst day in government,” Baird quipped, “is still better than the best day in opposition.”
Watch the full interview above.
Canada’s Liberals and Conservatives are neck and neck as election begins, and running on similar promises
Canada’s federal election is on. The polls show a polarized contest between the Liberals and Conservatives, one dominated by Donald Trump and the question of who’s best-suited to deal with his tariff and annexation threats. Canadian nationalism has surged. The Liberal Party, recently down 25 points in the polls to the Conservatives, have seen their fortunes turn around under new leader and Prime Minister Mark Carney — a manwho’s been all too keen to, ahem, adapt ideas from his top rival.
Liberal, Tory, same old story?
A Trump-centric campaign risks obscuring other important policy issues. But how much does it matter when the two front-runners are so close together? So far, both parties — one of which is running on the slogan “Canada Strong” and the other on “Canada First” – have adopted similar proposals for a range of issues.
Both Liberal and Conservative campaigns launched with promises to cut personal income taxes. The Liberals are offering a 1% cut to the lowest bracket, and the Conservatives are putting forward a 2.25% cut. Both parties are also promising to cut federal sales taxes on new homes for first-time buyers, with Liberals including new builds worth as much as CA$1 million and the Conservatives ramping it all the way up to … $1.3 million, but they’ll expand eligibility to non-first-time buyers, including investors.
On defense, Carney is promising to spend 2% of GDP on the military by 2030 and expand Arctic security. Poilievre has promised more or less the same, with details to come. Both say they’ll speed up the building of energy infrastructure, including oil and gas pipelines, though Carney would keep a Trudeau-era emissions cap on the oil and gas sector, while Poilievre would not.
Affordability remains a major concern, even more so with tariffs threatening the economy. Poilievre even says he’d keep (though perhaps not expand) the Liberals’ public prescription drug, daycare, and dental care programs. Meanwhile, nearly a quarter of Canadians can’t afford food. In 2024, the Liberals launched a food lunch program, which the Conservatives attacked as a headline grab but didn’t outright oppose. The parties haven’t released more on food security and affordability yet, but they almost certainly will.
Can the Liberals rewrite the past?
While the Liberals are now led by Carney, with former Prime Minister Justin Trudeau gone, they’re still the same party that has governed for nearly a decade and earned ire from voters for policy shortcomings. With a policy agenda that, so far, looks similar to that of the Conservatives, the Liberals must persuade voters they’re not just better on policy, but that their guy is better on character and competence, and that his team is fit for purpose.
It’s a tricky task, and it’s fair to ask how much the Liberal Party has changed. Many top candidates and current Cabinet ministers are the same faces from Trudeau’s years, including Chrystia Freeland, Mélanie Joly, Dominic LeBlanc, Bill Blair, and François-Philippe Champagne. The Liberal surge even persuaded a handful of candidates who’d served in the caucus to run again after saying they were out under Trudeau, including high-profile players Anita Anand, Sean Fraser, and Nate Erskine-Smith.
When Carney announced his Cabinet just before he triggered the election, Conservatives were quick to point out that the group contained 87% of the same faces from Trudeau’s table. Among the faces are those who supported, just weeks earlier, policies Carney is now reversing, including the Liberals’ signature consumer carbon price and its planned increase to the capital gains inclusion rate (reversals Conservatives were calling for).
Canada’s “presidentialized” election
A leader-focused campaign in the face of Trump’s threats will, perhaps ironically, be thoroughly American. Graeme Thompson, a senior analyst with Eurasia Group’s global macro-geopolitics practice, notes that the tricky thing for the Liberals is this is a change campaign, with voters looking to reset after the Trudeau years. Carney will have to present himself as that change – which could mean an intense focus on him as leader.
Thompson calls it a “presidentialized” campaign, one that comes with a risk for the neophyte Liberal leader. “It opens the question of Carney’s political experience, or rather lack thereof – and the fact that he has never run an election campaign before, let alone a national general election campaign. It’s an open question whether his political inexperience comes out in a negative way.”
But a focus on character could also set Carney apart from Poilievre, even if the two don’t have much daylight between them on policy. Voters see Carney as the best person to be prime minister, and he enjoys high favorability ratings — over half the country likes him. The Conservative Party leader, on the other hand, isn’t particularly well-liked, with his unfavorables sitting at 59%.
Promise now, worry later?
For all the talk of character, Conservatives, including Poilievre himself, have accused the Liberals of stealing their ideas. That’s a fair criticism. As Thompson puts it, the Liberals have caught the Conservatives out and, indeed, have adopted their positions. But how far will that take the Liberals? And at what cost?
“These are all Conservative policies that were being wielded against Trudeau,” Thompson says, “which Carney has now adopted as his own. And it’s shrewd politicking.” But it’s also risky. “If the Liberals win, they need to deliver very quickly on showing that this is a new government and that they have new policies. The honeymoon period would be, I think, quite short.”
The Liberals will be happy to worry about all of this later. For now, they’re the beneficiaries of an election in which the very issues that were set to spell their doom have become temporarily incidental to Trump and to questions of character and competence – questions to which voters seem to think Carney is the answer.
The policy challenges that got Liberals into trouble in the first place are still lurking and waiting to reassert themselves in short order. But for the Liberals, those are problems for another day.
Mark Carney, the former governor of the Bank of Canada, is seen here officially announcing his bid for the federal Liberal Party leadership at Laurier Heights Community League in Edmonton, Canada, on Jan. 16, 2025.
Is Canada set for a snap election?
When was the vote supposed to happen? Canadian law requires that an election be held by Oct. 25, 2025. Federal elections last between 37 and 51 days and must be held on a Monday, so a March 10 call would mean a vote on April 21. Opposition parties are already planning to bring nonconfidence motions when Parliament reconvenes on March 24 to oust the minority government and force an early vote.
Why would Liberals call an early election? The resignation of Prime Minister Justin Trudeau, US President Donald Trump’s tariff threats, and talk of Canada as the 51st state have changed the political conversation. The ballot question has shifted from the government’s economic record to who can best take on Trump.
As a result, the Liberals’ poll numbers have risen dramatically. If Carney were leader, they would be tied withPierre Poilievre’s Conservatives, according to a new Leger survey. Since the opposition wants to force a vote anyway, there is arguably little to gain by waiting.
But it’s not a done deal. Liberal leadership candidate Chrystia Freeland says she would not hold an early election, citing the fact that, unlike Carney, she has a seat in Parliament and “would have the right to stand up in the House of Commons and to represent the government.” The timing could hinge on who wins the leadership – and where polls go between now and then.