Canada's Liberal Party, led by Prime Minister Mark Carney, secured an unexpected fourth-term victory, facing immediate challenges including a cost of living crisis and strained U.S. relations due to tariffs and aggressive rhetoric. Carney aims to redefine Canada's international standing, emphasizing relationships beyond the U.S., amid perceptions of diminished global influence. Previous setbacks under Justin Trudeau involved economic disadvantage from the USMCA agreement and deteriorating relations with China and India. The diplomatic tensions with China stem from mutual tariffs and geopolitical disputes, while the rift with India involves allegations of political assassination. Carney's focus on strengthening ties with Europe, alongside commitments to increase military spending, signifies a strategic pivot, with upcoming international summits providing a platform for Canada to reassert itself on the global stage.

Mark Carney's leadership begins amid economic concerns, with 90% of Canadians worried about a potential recession, necessitating swift action to address the cost of living crisis.

Canada's relationship with the U.S. is tense, exacerbated by Trump's trade war and repeated threats to annex Canada, prompting Carney to reassure Canadians of their sovereignty.

The perception of Canada's global influence is in decline, with surveys indicating a gap between Canadian self-view and international perceptions, partly due to policies under former Prime Minister Trudeau.

Relations with China have worsened following a geopolitical saga involving the arrest of a Huawei executive and retaliatory imprisonments, leading to significant tariffs affecting Canadian agriculture.

Diplomatic ties with India are strained over allegations of political assassination, resulting in mutual diplomatic expulsions and an ongoing nadir in relations.

Carney's foreign policy emphasizes strengthening European ties, evidenced by his preference for visiting London and Paris over Washington, and pursuing a pending trade deal with Britain.

Despite not securing a parliamentary majority, Carney has public support for his platform, which includes a significant increase in military spending to align with NATO commitments.