Prime Minister Mark Carney pledged to beat the United States in Donald Trump's trade war after winning Canada's election

Ottawa (AFP) - Prime Minister Mark Carney pledged Tuesday to beat the United States in Donald Trump’s trade war after winning Canada’s election and leading his Liberal Party to another term in power.

While the Liberals won control of parliament, they looked set to fall just short of a majority, with a handful of races in Canada’s 343 electoral districts still uncalled.

Congratulatory messages from world leaders poured in, with countries including China and India saying they would welcome cooperation with Carney’s government.

Following a campaign dominated by Trump’s tariffs and annexation threats, Carney promised to chart “a new path forward” in a world “fundamentally changed” by a United States that is newly hostile to free trade.

“We are over the shock of the American betrayal, but we should never forget the lessons,” said Carney, who led the central banks of Canada and Britain before entering politics only earlier this year.

“We will win this trade war and build the strongest economy in the G7,” Carney said.

Carney should be able to pass large parts his agenda through deals with smaller parties, in an extraordinary comeback for the Liberals, who until recently looked headed for an electoral wipeout.

Poilievre, whose party was on track to form a strong opposition, conceded defeat on Tuesday and promised to work with the Liberals to counter Trump

Pierre Poilievre’s Conservative Party had been on track to win the vote but Trump’s attacks, combined with the departure of unpopular former prime minister Justin Trudeau, transformed the race.

Carney, who replaced Trudeau as prime minister just last month, convinced voters that his experience managing economic crises made him the ideal candidate to defy Trump.

- Poilievre loses seat -

Poilievre lost his own seat in a surprise shock, but indicated he would seek to stay on as opposition leader.

Conceding defeat on Tuesday, he promised to work with the Liberals to counter Trump.

“We will always put Canada first,” Poilievre told supporters in Ottawa.

Liberal Supporter Dorothy Goubault celebrates the Canada election result

“Conservatives will work with the prime minister and all parties with the common goal of defending Canada’s interests and getting a new trade deal that puts these tariffs behind us while protecting our sovereignty.”

Despite the defeat, the 45-year-old Poilievre led the Conservatives to their best performance in several elections, setting them up as a forceful opposition in parliament.

The Tory leader was criticized for only showing limited anger towards Trump, but said he wanted to keep the campaign’s focus on domestic concerns.

British leader Keir Starmer congratulated Carney and said he looked forward to strengthening ties, adding that the two countries are “the closest of allies, partners and friends.”

European Commission President Ursula von der Leyen also said she anticipated working with Ottawa to “defend our shared democratic values.”

China’s foreign ministry said it was “willing to develop China-Canada relations on the basis of mutual respect, equality, and mutual benefit.”

Meanwhile India’s Prime Minister Narendra Modi said he was keen to grow relations with Ottawa and “unlock greater opportunities for our people.”

Canada has accused New Delhi of being involved in the assassination of a Canadian who campaigned for Sikhs to secede from India – a claim which Modi’s government has denied.

- ‘We are Canada’ -

Liberal supporters cheered Carney’s victory at a watch party in Ottawa.

“We’ve got somebody that can speak to Mr. Trump on his level,” said Dorothy Goubault, 72.

“Mr. Trump is a businessperson. Mr. Carney is a businessperson, and I think they can both relate.”

Trump’s attacks on Canada “really mobilized Canadians,” Liberal lawmaker and a member of Carney’s cabinet, Steven Guilbeault, told the CBC.

He said Canadians saw Carney as “someone who has experience with the economy.”

Carney led the Bank of Canada through the 2008-2009 financial crisis and headed the Bank of England through the turmoil surrounding the 2016 Brexit vote.

On January 6, the day Trudeau announced he would resign, the Conservatives led the Liberals by more than 20 points in most polls, as public fury over soaring costs mounted after Trudeau’s decade in power.

But Carney distanced himself from Trudeau throughout the campaign.

He said the former prime minister did not focus enough on growing Canada’s economy and scrapped a controversial Trudeau carbon tax that left many voters seething.