OTTAWA –Amid the turmoil are ongoing questions about Mark Carney’s global finance ties. His roles at Brookfield Asset Management and the World Economic Forum have sparked doubts about where his interests lie, especially since Canada faces economic headwinds linked to U.S. tariffs and shifting global trade.
Blayne Haggart, a political analyst, wrote in the Globe and Mail that Carney’s finance background, once seen as an asset, now makes many Canadians uneasy. “His history with global elites makes people question if he’s really committed to Canada first.”
The opposition has seized on these concerns, too. Conservative leader Pierre Poilievre accuses Carney of being “too close to international players,” highlighting his move to drop the Digital Services Tax (DST) as proof that he gave in to U.S. pressure.
The DST, which taxed large tech companies, was scrapped in June after Trump threatened to halt trade talks, a move Poilievre called a “unilateral concession,” further stoking doubts about Carney’s resolve.
Trade Disputes and Poor Results
Carney’s work in trade talks with the Trump administration has attracted heavy criticism. An early friendly meeting with Trump in May, followed by the G7 in Alberta, had raised hopes that Canada might secure a deal without tariffs. Trump even called Carney a “terrific guy,” a far cry from his treatment of Trudeau.
These early signs did not pan out. On July 15, Carney admitted that a tariff-free deal was now unlikely, saying little showed that the U.S. would give up tariffs on Canadian goods. This was a major climbdown from his earlier pitches. Trump’s threats to impose a 35 percent tariff on Canadian products starting August 1 have already damaged local industries, especially steel and auto manufacturing.
A report from the Canadian Steel Producers Association showed output dropping 30 percent since Trump doubled tariffs to 50 percent in June. Carney’s move to pause planned retaliatory tariffs on U.S. steel and aluminum, scheduled for July 21, met with fierce backlash. Ontario Premier Doug Ford said Carney was “playing a dangerous game of appeasement” and demanded a tougher response.
Some of Carney’s supporters point out that Trump’s erratic behaviour makes the trade file nearly impossible to handle cleanly. Professor Fen Hampson argued that progress should not be judged by the outcome of any single round. Still, for many in the Liberal caucus, the lack of progress is starting to undercut any faith in Carney’s direction.
Frustrations Among First Nations
Carney’s government is also being criticized by First Nations leaders, who feel locked out of decisions on economic policy, especially in areas tied to resource development and trade. While the Liberal platform in 2025 promised to further reconciliation, many Indigenous groups say the government has focused on corporate interests instead.
Chief Cynthia Joseph of the Assembly of First Nations said, “We were promised real consultation, but we see a government more concerned about trade with the U.S. than about our rights.” Protests have increased in Western Canada, where pipeline and mining projects have moved ahead without full input from Indigenous communities.
Carney’s absence during a diplomatic crisis—on holiday in late June—frustrated First Nations even more. “Our communities fight for their rights while the Prime Minister is on vacation,” Chief Joseph said. “It shows we’re not a priority.”
Canadians are also facing rising costs, as the trade fight with the U.S. leads to higher taxes and prices. The Liberal government’s move to impose retaliatory tariffs on $60 billion worth of U.S. goods has made imported products, including cars and electronics, more expensive. The cancellation of the DST has also left a gap in federal revenue, fuelling speculation about possible new taxes.
Inflation has added to the strain, making household budgets stretch thinner. Small businesses report drops in cross-border tourism, hurting local economies. The U.S. Federal Reserve’s Beige Book found fewer Canadian visitors to U.S. border areas, which also affects Canadian border towns.
Carney has tried to calm fears, arguing that efforts to set up new trade deals with the EU and Asian countries will help in the long term. Critics say these changes will take too long, leaving Canadians to deal with price hikes now. Conservative MP Michael Barrett said, “The Liberals painted Carney as a financial fixer, but so far there’s only been instability.”
Mark Carney’s Holiday Draws More Criticism
Carney’s choice to take a short vacation in late June as talks with Washington fell apart has angered critics. As Trump dropped the DST discussions and warned of new tariffs, many expected Carney to stay in Ottawa and manage the crisis. Instead, his holiday looked out of touch with his promise to stand up for Canadians during tough times.
Poilievre said on social media, “While Canadians worry about jobs and costs, the Prime Minister is on holiday. That’s not leadership—that’s being disconnected.” The holiday came as protests by First Nations increased and as economic problems worsened, reinforcing the image of a leader removed from everyday concerns.
The Liberal Party stands at a crossroads as frustration over trade, the economy, and Indigenous relations grows. Some MPs say Mark Carney deserves more time, given the challenge of dealing with the current U.S. administration. Others believe the party may have to consider a new leader before the next election.
Roland Paris, who once advised on Canada-U.S. relations, urged caution. “A lot depends on the final trade deal with the U.S. If Carney gets a deal that works for Canada, he could survive. If not, the cost could be severe.”
For now, Mark Carney insists his team is “building Canada strong” and is hopeful for a trade deal by the revised August 1 deadline. However, as MPs quietly prepare to protect their right to challenge him, and as public impatience grows, his leadership is on shaky ground.
The next few weeks will reveal whether Carney can hold onto power or if the Liberals will be searching for yet another leader in uncertain times.
