Canada's New Cabinet: Charting a Bold Course with the U.S.

Canadian Prime Minister Mark Carney unveils a new cabinet aiming to reshape relations with the U.S. with a focus on economic change and trade diversification. Key players remain, while some ministers are reassigned. Carney emphasizes the urgency to boost internal economic dynamics alongside ongoing U.S. negotiations.

Canadian Prime Minister Mark Carney revealed a streamlined cabinet on Tuesday, designed to redefine Canada's relationship with the United States under President Donald Trump. The new lineup retains key figures, including Finance Minister Francois-Philippe Champagne, while moving Melanie Joly to Industry and appointing Anita Anand as Foreign Affairs Minister.

With a strong mandate from Canadians, Carney's administration intends to prioritize economic and security partnerships with the U.S. His recent trip to Washington, however, yielded no relief from U.S. tariffs. The government plans to steer investment away from U.S. reliance and reduce trade barriers internally.

Trade diversification and regulatory reform are top on the business community's agenda, according to Matthew Holmes of the Canadian Chamber of Commerce. Notably, former banker Tim Hodgson steps into the role of natural resources minister. The cabinet aims for a strategic transformation to meet their C$130 billion four-year spending pledge despite projecting a significant fiscal deficit.

(With inputs from agencies.)