The Liberal Party's unexpected win was largely influenced by U.S. President Donald Trump's threats of tariffs and annexation, which galvanized nationalist sentiment in Canada and shifted voters' support away from the Conservatives. Additionally, the resignation of Justin Trudeau and Mark Carney's leadership played significant roles in the election's outcome.

The Liberal minority government will need to negotiate support from other parties on a vote-by-vote basis to pass legislation. Given the New Democratic Party's poor showing, formal agreements like a supply and confidence pact may be less likely, increasing the challenge for the Liberals.

Trump's threats on tariffs and annexation have strained U.S.-Canada relations. The Liberal government will face significant challenges in navigating these pressures while protecting Canada's economic interests, particularly given that over 75% of Canada's exports go to the U.S.