The former central bank chief takes over at what he has called “a time of great peril” for Canada, with Trump attacking its sovereignty and economic security.

Carney, 59, replaces Prime Minister Justin Trudeau, who announced his resignation in January but remained in power until the Liberal Party elected a new leader. Carney is widely expected to trigger a general election in the coming days or weeks.

Secretary of State Marco Rubio denied the U.S. was in a trade war Friday as he wrapped up his trip to a meeting of top diplomats from the G7 industrialized democracies.

In talks aimed at finding common ground on tariffs, Canadian officials were told April 2 will be a crucial day in setting the Trump tariff doctrine, and any relief could come later.

Despite the tensions, diplomats are hopeful group could reach consensus on a final communique Friday after hours of late-night negotiations.