Mark Carney, a former central banker, is poised to become Canada’s new prime minister, with the task of steering the nation through the challenges posed by tariffs imposed by Donald Trump.

What Happened: The Liberals announced Carney as the successor to Justin Trudeau on Sunday, following a party voting contest, as reported by Reuters. Trudeau stepped down in January amidst dwindling approval ratings after nearly a decade in power.

Carney, 59, is a political outsider who has never held office, a factor that would typically hinder his candidacy in Canada. However, his distance from Trudeau and his high-profile banking career played in his favor. Carney believes he is the only candidate equipped to handle Trump’s tariffs.

“I know how to manage crises … in a situation like this, you need experience in terms of crisis management, you need negotiating skills,” said Carney.

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Why It Matters: Carney’s appointment also marks a significant shift in Canadian politics, as he is set to be the first person to become Canadian prime minister without prior legislative or cabinet experience.

His diverse background, including a stint as a college-level ice hockey goalkeeper at Harvard and 13 years at Goldman Sachs, coupled with his handling of the financial crisis and his work on finance and climate change at the United Nations, may bring a fresh perspective to the role.

The announcement of Carney’s prime ministership comes amidst escalating trade tensions between the U.S. and Canada. Trump had threatened to impose reciprocal tariffs on Canadian lumber and dairy products, accusing Canada of "ripping us off for years" with a 250% tariff on U.S. dairy.

In response, Trudeau announced a 25% tariff on C$155 billion ($109 billion) worth of U.S. goods. This tit-for-tat tariff war has been a significant concern for both nations, and Carney’s banking experience and crisis management skills could prove crucial in navigating these challenges.

Photo Courtesy: bella1105 On Shutterstock.com

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal