OTTAWA — Mark Carney took his official oath of office as prime minister Friday before unveiling the smaller, more “action oriented” cabinet he plans to put on the front lines of the trade war with the U.S. and the upcoming federal election.

Former innovation minister François-Philippe Champagne takes control of the government purse as finance minister in one the most substantive moves of the shuffle. If there was a theme, though, it was less is more: the 36-minister team that served under Justin Trudeau has been reduced to 23, with members of Carney’s cabinet taking on larger portfolios.

The group will focus on two priorities, Carney told reporters outside Rideau Hall. “First, protecting Canadian workers and their families in the face of unjustified foreign trade actions. Second, growing this great country by putting more money in Canadians’ pockets,” he said.

Trade team remains intact—mostly 

With the new PM expected to call an election within days, Carney made some symbolic moves designed to differentiate his government from that of Trudeau. Canada’s trade conflict with U.S. President Donald Trump is not expected to pause, however, so Carney has kept the key players steering Canada’s response in place, including Foreign Minister Mélanie Joly and Public Safety Minister David McGuinty. 

Dominic LeBlanc, who previously balanced responsibilities as finance minister with his role leading the Canada-U.S. relations file, will now focus on international trade and intergovernmental affairs, marshalling the provinces in pursuit of a coordinated response to Trump’s trade war. 

Chrystia Freeland, Carney’s chief opponent in the leadership race, has been tasked with tearing down interprovincial trade barriers, as well as the transportation portfolio. Her work could be pivotal to Carney’s ambition to unify Canada’s fragmented, decentralized economy, as a way to offset the impact of U.S. trade tariffs. She takes over from Anita Anand, who becomes innovation minister.

First on the agenda 

Carney scrapped the consumer carbon tax Friday afternoon in one of his first official acts as prime minister. The federal tax had been set to increase from $80 a tonne to $95 a tonne on April 1 for provinces without their own program but Carney, previously a proponent of the levy, called the policy divisive during the Liberal leadership campaign and promised to get rid of it. 

No surprise, then, that he also shuffled the champion of the carbon tax in Trudeau’s government, Steven Guilbeault, out of the environment portfolio. Guilbeault will remain in cabinet to oversee Parks Canada, serve as Quebec lieutenant and take over the new role of Canadian culture and identity. Carney said one of the reasons for the new post is to highlight the country’s distinct identity amid Trump’s musings about annexing Canada as a 51st state.

Who’s in, who’s out

The smaller cabinet leaves out several long-serving ministers who had intended to run again. They include Trudeau’s close friend Marc Miller, most recently tasked with reversing the massive expansion of immigration since the pandemic and Jean-Yves Duclos, who steered the health department through much of the COVID-19 pandemic.

New faces include Toronto-area MP Ali Ehsassi who takes over procurement and government services, and London, Ont., MP Arielle Kayabaga, who assumes the roles of Liberal House leader and minister of democratic institutions.

Behind the scenes

Carney has installed several key players in his office, including former public safety minister Marco Mendicino, who lost his seat at the cabinet table in 2023 after a string of controversies involving the government’s use of the Emergencies Act and his office’s handling of the transfer of convicted killer Paul Bernardo from maximum- to medium-security prison. Mendicino will act as Carney’s chief of staff during the transition period. Tim Krupa, a Goldman Sachs economist, will direct policy for Carney’s election campaign.

Everything is different, everything is the same 

Conservative Leader Pierre Poilievre said Carney’s new team is no different than the cabinet appointed by Trudeau in his last shuffle. “Liberals are trying to trick Canadians into electing them to a fourth term in power with a cabinet that is 87 per cent the same as Trudeau’s cabinet,” he said.

NDP Leader Jagmeet Singh, accused the Liberals of abandoning progressive positions Trudeau included in his past cabinets by not appointing ministers for women, youth, people with disabilities, diversity and, most notably, labour. “He’s signifying clearly that he’s not interested or not prioritizing labour, unions, workers. That is very problematic to me,” Singh said.

What’s next

Carney is expected to travel to Europe in a few days, at the invitation of France’s President Emmanuel Macron, to discuss diversifying trade ties with his counterparts in France and Britain. 

“With both Europe and the United Kingdom, there are many opportunities,” said Carney, who previously served as governor of the Bank of England. He said he has no plans to travel to the United States, but looks forward to speaking with Trump “at the appropriate moment.”

This story was updated to reflect that Carney officially cancelled the carbon tax, and to include reaction from opposition leaders.