CANADIAN Prime Minister Mark Carney’s Liberal Party has won re-election, capping a dramatic reversal of fortunes driven by US President Donald Trump’s annexation threats and trade war.

Right-wing populist challenger Pierre Poilievre, who, a few months ago, appeared all but certain to take his Conservative Party into government for the first time in a decade, suffered the humiliation of losing his seat in the House of Commons, according to a Canadian Broadcasting Corporation projection.

Mr Poilievre has campaigned with Trump-like bravado, echoing the US president by adopting the slogan Canada First.

But after Mr Trump launched a trade war against Canada and suggested the country should become the 51st US state, a surge of patriotic sentiment turned voters against the Tory leader and his party.

The Liberals were projected yesterday to win more of the Commons’ 343 seats than the Conservatives, though, as the Morning Star went to press last night, it remained unclear whether they would win an outright majority — at least 172 — or would need the support of a smaller party to pass legislation and remain in power.

The Bloc Quebecois looked likely to take third place, but its pursuit of independence for French-speaking Quebec could pose problems for Mr Carney.

The left-wing New Democratic Party, on which the Liberals relied for four years, did badly on Monday and leader Jagmeet Singh said he was resigning after eight years in charge.

In a victory speech, Mr Carney stressed the importance of unity in the face of Washington’s threats.

“We are over the shock of the American betrayal, but we should never forget the lessons,” the former Bank of England governor said.

“As I’ve been warning for months, America wants our land, our resources, our water, our country.

“These are not idle threats. President Trump is trying to break us so America can own us. That will never … ever happen. But we also must recognise the reality that our world has fundamentally changed.”

Posting on social media on election day, Mr Trump falsely claimed that the US subsidises its northern neighbour, writing: “It makes no sense unless Canada is a state!”

Mr Trump’s truculence has infuriated Canadians, leading many to cancel holidays in the US, refuse to buy US goods and possibly even vote early, with a record 7.3 million casting ballots before election day.