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Carney Unveils Streamlined Cabinet, Vows New Economic Path for Canada

Canada’s PM Carney has unveiled streamlined cabinet, pledging a new economic path and redefining relations with the United States.

Canadian Prime Minister Mark Carney has unveiled a new cabinet, pledging to redefine Canada’s economic and security relationship with the United States. 

The announcement followed his election victory last month, where he campaigned on a platform of standing up to US President Donald Trump.

Carney has reduced the number of ministers to 29 from the 39 appointed by his predecessor, Justin Trudeau. 

However, he retained key figures, including Finance Minister François-Philippe Champagne and Dominic LeBlanc, who remains responsible for US trade. In a notable reshuffle, Melanie Joly, who has served as Foreign Affairs Minister for four years, has been moved to the Industry portfolio, while Anita Anand takes over as Foreign Affairs Minister.

“Canadians elected this new government with a strong mandate to define a new economic and security relationship with the United States and to build a stronger economy,” Carney’s office said in a statement. “This focused team will act on this mandate for change with urgency and determination.”

Carney recently met with President Trump in Washington but failed to secure the removal of tariffs imposed on Canadian exports. 

He has since argued that Canada must invest billions to reduce its economic reliance on the United States, dismantle internal trade barriers, and cut public spending.

Matthew Holmes, policy chief at the Canadian Chamber of Commerce, welcomed the emphasis on economic reform. “Right now, the business of government must be business,” he said, expressing readiness to collaborate with the new administration on regulatory reform and trade diversification.

Among the most significant changes in the new cabinet is the appointment of Tim Hodgson, a former Goldman Sachs banker, as Natural Resources Minister, replacing Jonathan Wilkinson. 

Chrystia Freeland, who resigned as finance minister last December, remains as Minister of Transport and Internal Trade. Carney also appointed 10 junior secretaries of state.

In addition, Carney announced his immediate priorities: a tax cut and the removal of all trade barriers between Canada’s 10 provinces by 1 July. His government’s economic plan includes additional spending of approximately C$130 billion over the next four years, with the deficit projected to rise to C\$62.3 billion by 2025-26, significantly higher than the C$42.2 billion forecast last December.

The Prime Minister also abolished the role of Labour Minister, replacing it with a Secretary of State for Labour—a move criticised by the Teamsters union as confusing and concerning. 

“It suggests the Carney government is underestimating the scale of the challenges facing Canadian workers,” said union spokesperson Christopher Monette.

Under the previous Trudeau administration, Canada faced several major labour disputes, including strikes by port, railway, and postal workers, which required government intervention. 

The change in the labour portfolio has sparked concerns over how the new government will address future labour issues.

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