While America’s main opponent in the global trade conflict is China, the introduction of Trump’s blanket, so-called “reciprocal tariffs” on the likes of the UK and other European countries has led to allies seeking fresh agreements in response to barriers to trading with the world’s largest economy.

Carney, who endorsed UK Chancellor Rachel Reeves during the British general election, said “one would think” that Canada and the UK could sign a stalled free trade agreement as part of diversifying trade, but highlighted about 95% of trade between the countries is effectively tariff-free already.

“We could expand the level of integration between our countries, like-minded countries. You think about defence partnerships, and those conversations have just just begun, so there’s a lot that we can do,” he added.

In a statement congratulating Carney, UK Prime Minister Sir Keir Starmer said: “I know we will continue to work closely on defence, security, trade and investment.”

Carney said the G7 summit hosted by Canada in June would be “very important” in deciding the future path of the global trade war, adding it would “put to the test” whether the group of the world’s seven most advanced economies – which includes the US – was still the most “like-minded of like-minded countries”.

The summit will occur just before the 90-day pause on some of Trump’s higher tariffs is set to expire.