Canadian Prime Minister Mark Carney, who was elected last month after pledging to take a firm stance against U.S. President Donald Trump, introduced a newly streamlined cabinet on Tuesday. Carney stated the new team is focused on redefining Canada’s relationship with the United States as a priority.
He reduced the size of the cabinet to 29 members from the previous 39 under former Prime Minister Justin Trudeau, though several prominent figures remain in their roles. Finance Minister Francois-Philippe Champagne stays on, as does Dominic LeBlanc, who continues to handle matters related to U.S. trade.
Although Carney met with Trump in Washington recently, the talks did not lead to the lifting of tariffs placed on Canadian goods.
“Our government is ready to act with speed and purpose,” Carney said during a press conference. “Canadians are still burdened by unfair U.S. tariffs, and we intend to defend our workers and industries.”
Carney emphasized the need for Canada to reduce its economic dependence on the U.S., calling for significant domestic investment, fewer internal trade restrictions, and a reduction in government spending.
Matthew Holmes, policy director at the Canadian Chamber of Commerce, welcomed the push for reform, noting the urgency of addressing internal trade barriers and modernizing regulations.
There were notable changes in cabinet roles: Melanie Joly, previously the foreign minister, now leads the industry portfolio and is succeeded by Anita Anand. Chrystia Freeland, who stepped down as finance minister last year in a move that contributed to Trudeau’s political decline, remains in charge of transport and interprovincial trade. Tim Hodgson, a former executive at Goldman Sachs, has been appointed natural resources minister.
According to Cameron Anderson, a political science professor at Western University, Carney’s choices for key positions signal a strategic focus on strengthening Canada’s stance in cross-border relations.
Ten junior secretaries of state were also named. Among Carney’s early promises are a broad tax cut and the elimination of trade barriers between provinces by July 1.
His fiscal plan includes approximately C\$130 billion in new spending over four years, projecting a deficit of C\$62.3 billion for 2025–26—substantially higher than the C\$42.2 billion estimated late last year.
One structural change drawing criticism is the replacement of the labor minister position with a secretary of state for labor. The Teamsters union expressed concern, suggesting the move downplays the challenges workers face. “It raises serious doubts about how seriously the government takes labor issues,” said union spokesperson Christopher Monette.
Trudeau’s previous administration had intervened in several high-profile labor disputes, including strikes in the port, rail, and postal sectors.
In the recent election, Carney’s party narrowly missed a majority in Parliament. The opposition Conservatives had been leading earlier in the year but lost momentum after Trudeau stepped down and Trump introduced new trade penalties while hinting at possible annexation.
Commenting on the new cabinet, Conservative leader Pierre Poilievre criticized the appointments. “This is just a continuation of the old Trudeau government,” he said. “Canadians were promised change, but this isn’t it.”
