Canada's governing Liberals will announce a replacement for Prime Minister Justin Trudeau on Sunday as the country deals with U.S. President Donald Trump's tariff threats and as a federal election looms.

Mark Carney, the front-runner to become Canada's new prime minister, is a two-time central banker and crisis fighter who may soon face his biggest challenge of all: steering Canada through Donald Trump's tariffs.

Former central banker Mark Carney is tipped as the favourite to replace Canada's outgoing Prime Minister Justin Trudeau as the ruling Liberal Party meets to choose a new leader. Canada's Liberal Party will on Sunday announce Prime Minister Justin Trudeau's successor as both party chief and head of the country's government in the midst of a trade war with the United States that could cripple the Canadian economy.