The Liberal Party led by Mark Carney retained power in Canada after months of speculation that the party might be heading for a defeat following Justin Trudeau’s step down. The major political comeback of the Liberals in Canada was fuelled by several factors – majorly the immediate threats posed by its neighbour United States.

Although not with a clear majority, Mark Carney is still headed for another term as the Canadian Prime Minister and will form a government with a fresh cabinet.
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Canadians in the 343 electoral districts voted for their local representatives on Monday. Those elected will represent their electoral districts in the House of Commons. In Canada’s House of Commons, a party needs to win 172 seats for a clear majority.
The upcoming term of Liberals led by Mark Carney poses several challenges – both internal and external.
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What helped Liberals win
Among several factors that led the incumbent Liberal Party to win in Canada was the anti-conservative wave in the country and the tariff war initiated by United States President Donald Trump, according to experts.
“It was the ‘anybody-but-Conservative’ factor, it was the Trump tariff factor, and then it was the Trudeau departure … which enabled a lot of left-of-center voters and traditional Liberal voters to come back to the party,” Reuters quoted Shachi Kurl, president of the Angus Reid Institute polling firm as saying.
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What challenges lie ahead
For the new Canadian government, which is yet to be formed, one of the major challenges would be to face US President Trump’s annexation threats to make Canada the 51st state of the United States.
Apart from that, the government will also be challenged to navigate the harsh reciprocal tariffs imposed by Trump and the global war triggered by it.
The internal issues remain similar to what led to Justin Trudeau’s departure, including rising living costs, housing prices and surge in immigration, reported AP.
Additionally, how Canada deals with the Khalistan movement, which India demands stricter action against, will also be in focus. The country houses the largest Sikh population outside India, which includes those backing Khalistan, a fringe separatist movement that calls for an independent Sikh state carved out of Indian territory.
(With agency inputs)