As Mark Carney assumes office as Canada’s 24th prime minister following the April 28 election, he inherits a nation facing profound economic, political, and social challenges. His ability to act swiftly and decisively will determine not only the success of his minority government but also the country’s stability. From trade disputes and economic stagnation to regional alienation and social fragmentation, Carney’s first year in office will set the tone for Canada’s future. To prevent further decline, his government must at once focus on six urgent priorities.
1. Rebuild our relationship with the U.S.
Carney’s first major foreign policy challenge will be navigating a volatile relationship with Washington. Donald Trump’s return to the White House has brought renewed economic hostility toward Canada, with tariffs on steel, aluminium, and lumber, alongside protectionist measures targeting autos and agriculture. These policies are already damaging Canadian exporters, manufacturers, and workers. Carney must act quickly to defuse tensions and negotiate a resolution, using his financial expertise and Canada’s role as a key supplier of energy, minerals, and manufactured goods. Restoring stability in trade will not only protect jobs but also set the stage for broader discussions on North American economic cooperation.
2. Renegotiate CUSMA
Related to the tariff dispute is the pending review of the Canada-United States-Mexico Agreement (CUSMA), and Canada cannot afford to be caught flat-footed. The U.S. is expected to demand stricter rules of origin for manufacturing, greater access to Canadian agricultural markets, and expanded “Buy American” provisions. Rather than taking a defensive stance, Carney should push for strategic expansion of our negotiations to include digital trade, critical minerals, softwood lumber and energy. Canada must bring strong offensive interests to the table to counterbalance U.S. demands. A well-negotiated deal could reinforce North America’s economic strength, but hesitation will leave Canada vulnerable.
3. Reconstitute Canada’s military might
Canada has long fallen short of its NATO commitment to spend 2 percent of GDP on defence. With Russia’s aggression, China’s military expansion, and Middle Eastern tensions leading to rising global tensions, Canada’s allies are losing patience. Trump has made it clear that those who do not contribute their fair share will not be prioritized in security alliances. Carney must immediately commit to modernizing Canada’s armed forces, investing in continental defence, and renewing NORAD. Arctic sovereignty is an urgent concern as Russia and China eye the region’s strategic importance. Delay is not an option. If Canada does not step up, it risks being left isolated and vulnerable, left out of key defence agreements, and weakened in the face of global threats.
4. Restore national unity
The prime minister also faces a growing crisis of national unity, particularly in Western Canada. Alberta Premier Danielle Smith’s nine demands—including greater control over immigration, taxation, and resource development—are a direct challenge to federal authority. Notwithstanding the protestations of some, Western alienation is real. Many in the West see Carney as an out-of-touch elite who represents a Liberal government that has turned Canada into a de facto one-party state. Ignoring their concerns would be a profound mistake. Our prime minister must engage the West constructively, recognizing that Alberta and Saskatchewan are critical to Canada’s long-term prosperity. Federal-provincial tensions are nothing new, but the stakes are higher than ever. If mishandled, this crisis could push Canada closer to political instability.
5. Reboot the economy
The greatest long-term threat to Canada is its economic stagnation. Productivity is lagging, business investment is weak, and regulatory barriers continue to choke growth. Meanwhile, an over-reliance on government spending has created unsustainable fiscal pressures. Carney’s economic credentials are his strongest asset, but they will mean little if he does not act decisively. His government must prioritize tax and regulatory reform, infrastructure investment, and monetizing our innovation economy to drive real productivity gains. Unleashing our resource sector, including oil and gas, is a great place to start.
Canada must become a place where businesses want to invest, workers can thrive, and economic growth is not just government-driven. If our prime minister fails to reignite the economy, the consequences will be dire. Falling living standards, worsening regional inequalities, and a deepening sense of disillusionment will accelerate national decline.
6. Repair our growing social divisions
Beyond economic and political challenges, Carney must also address Canada’s growing social divisions. Rising polarization, religious and ethnic tensions, and a breakdown in civil discourse have left our country more fragmented than ever. A leader’s role is not just to govern but to inspire. As prime minister, Carney must foster a unifying vision of Canada—one that restores public confidence in democratic institutions and promotes respect and tolerance. If he does not address these fractures, the country risks descending into deeper social unrest.
It’s not going to be easy
The clock is ticking. Carney will not have a political honeymoon. If he mismanages the U.S. relationship, botches CUSMA renegotiations, or does not meet Canada’s defence obligations, the country will find itself weaker and more vulnerable. If he ignores Western alienation, national unity will be at risk. And if he does not tackle economic stagnation and social fragmentation, Canada’s long-term prosperity will be in jeopardy.
Our prime minister has spent his career helping navigate financial crises. Now, he must prove that he has the political acumen to lead Canada through one of its most challenging periods in history. His first months in office will define his legacy—and Canada’s future.
