The governing Liberal Party appeared to be poised for a historic election defeat this year until US President Donald Trump declared an economic war and threatened to annex the country as a "51st state".
Economist and former governor of Bank of Canada Mark Carney has been sworn in as Canada's new prime minister, replacing Justin Trudeau, who announced his resignation in January but remained in power until the governing Liberal Party elected a new leader.
Carney will now take on the task of steering the country through a trade war started by US President Donald Trump, the threat of annexation and an expected federal election.
He is widely expected to trigger a general election in the coming days or weeks.
The Liberal Party appeared to be poised for a historic election defeat this year until Trump declared an economic war and threatened to annex the entire country as the US' "51st state". Now the party and its new leader could come out on top.
Carney has said he’s ready to meet with Trump if he shows "respect for Canadian sovereignty" and is willing to take "a common approach, a much more comprehensive approach for trade."
Trump put 25% tariffs on Canada's steel and aluminium and threatened sweeping tariffs on all Canadian products on 2 April.
He has threatened economic coercion in his remarks regarding possible annexation and suggested the border is a fictional line.
The trade war and Trump's talk have infuriated Canadians, who have booed the American anthem at NHL and NBA games. Some have also cancelled trips south of the border, and many are avoiding buying American goods when they can.
The surge in Canadian nationalism has bolstered the Liberal Party's standing, and its showings have been improving in opinion polls.
Carney, who navigated crises when he was the head of the Bank of Canada and then in 2013 when he became the first non-UK citizen to run the Bank of England, will now try to steer Canada through the trade dispute.
"He will do very well. He's respected internationally," former Canadian Prime Minister Jean Chrétien told reporters.
"There is no magic solution. This is not a normal situation. We've never seen someone who changes his mind every five minutes as president of the United States. It creates problems everywhere, not only in Canada," Chrétien said of tasks Carney is set to face.