Mark Carney Sworn in as Canada's New Prime Minister

Former central banker Mark Carney was formally sworn in as Canada's prime minister on Friday, positioning him to confront tariffs imposed by US President Donald Trump that could devastate Canada's trade-dependent economy.

Watched by Governor General Mary Simon, the personal representative of King Charles, Canada's head of state, Carney was sworn in.

The moment capped a historic rise for the 59-year-old, said that Canada ‘will never be part of the US' amid trade war

A diplomat familiar with the plans said Carney plans to travel to London and Paris next week, as Canada seeks to strengthen alliances in Europe where its relationship with the United States has reached unprecedented lows.

Carney has reshuffled his cabinet with the aim of engaging with Washington. Finance Minister Dominic LeBlanc will move to the international trade portfolio and will be replaced by current Innovation Minister François-Philippe Champagne.

Carney crushed his rivals on Sunday in the race to become leader of the ruling Liberal Party, replacing Justin Trudeau, who has served for more than nine years.

Carney, the former head of the Bank of Canada and the Bank of England, successfully argued that his position as an outsider with a history of handling crises meant he was best placed to confront Trump, who has repeatedly spoken of Canada annexing the United States.

Carney told reporters on Wednesday that he was willing to meet with Trump when "Canadian sovereignty is respected."

He also added that he would maintain retaliatory tariffs on U.S. goods until the United States showed some respect for Canada.

Canadian Foreign Minister Melanie Joly told reporters on Friday that efforts were underway to arrange a call between Trump and Carney in the next two days.

Carney is set to appoint a government that is likely to be short-lived, with Liberal insiders saying he will call an early election within the next two weeks. If he changes his mind, opposition parties say they will unite to bring down the minority Liberal government in a confidence vote at the end of March.

Once an election is called, Carney will be severely limited in what he can do politically, given that convention dictates he cannot make major decisions while running for office.

Current polls indicate it will be a close race with the official opposition Conservative Party, with neither party securing enough seats to form a majority government.

Mark Carney is sworn in as Canada's prime minister amid pressure from Trump and his tariffs (AFP)