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Former finance minister Chrystia Freeland kicked off her campaign for Liberal leadership at an event in Toronto on Jan. 19.Frank Gunn/The Canadian Press

Chrystia Freeland officially launched her Liberal leadership bid Sunday by pitching herself as the strongest and most experienced candidate to take on incoming president Donald Trump and his threats to levy major tariffs on Canadian goods.

Shortly before Ms. Freeland’s campaign event, her main rival, Mark Carney, earned a key Quebec endorsement with the support of Foreign Affairs Minister Mélanie Joly.

Also entering the race is Karina Gould, the 37-year-old Liberal House Leader, who is billing herself as someone who can bring about generational change. The new party leader will be announced on March 9.

During a lengthy speech in Toronto, Ms. Freeland described herself as a fighter who successfully stood up to Mr. Trump throughout the renegotiation of the North American free-trade agreement during his first administration.

The U.S. president-elect has said he will impose 25-per-cent tariffs on Canadian goods as one of his first moves when he takes office on Monday, and has made multiple comments about Canada becoming the 51st state.

Ms. Freeland said Canada and the U.S. are friends and allies and this country is not looking to pick a fight with America. But, she added, “Canada is not for sale.”

“If you hit us, we will hit back,” she said.

“If I am prime minister, our response to illegal and unjustified tariffs will be dollar-for-dollar retaliation. If you force our hand, we will inflict the biggest trade blow that the United States has ever endured.”

Ms. Freeland’s official entry into the race sets up a battle against Mr. Carney, a former Bank of Canada governor who recently served as an economic adviser to Prime Minister Justin Trudeau. Her pitch as the candidate with political experience at a crucial time in Canada-U.S. relations will go up against that of Mr. Carney, who is billed as having a significant economic pedigree to challenge Conservative Leader Pierre Poilievre.

The 56-year-old Ms. Freeland quit Mr. Trudeau’s cabinet in December, expressing concerns about the direction of the government. The resignation of the former finance minister and deputy prime minister took place after Mr. Trudeau offered the finance portfolio to Mr. Carney, along with his plan to demote Ms. Freeland to minister without portfolio in charge of Canada-U.S. relations.

Who’s running to replace Justin Trudeau as Liberal leader?

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Karina Gould launches her Liberal leadership campaign in Burlington, Ont.Chris Young/The Canadian Press

The Liberal leadership change will mark a new chapter for the party after more than a decade with Mr. Trudeau at the helm. The race carries enormous stakes: Whoever takes over will also become prime minister at a pivotal moment and will likely be thrust into an election campaign in short order.

Ms. Freeland’s event, held at a youth club in Toronto, was delayed by several pro-Palestinian protesters who repeatedly interrupted her, while her supporters chanted her name in response. While speaking to reporters, Ms. Freeland said she was cautiously optimistic about the ceasefire that took effect Sunday between Israel and Hamas.

Ms. Joly endorsed Mr. Carney moments before Ms. Freeland launched her campaign.

The Quebec MP, who served for many years in cabinet alongside Ms. Freeland, said the 59-year-old former banker brings “unparalleled economic experience” to the role and is best positioned to defeat Mr. Poilievre.

Asked by journalists about Ms. Joly’s endorsement of her main rival, Ms. Freeland said she respects the Foreign Affairs Minister “a lot, in fact.”

She said the distinct nature of the Quebec language and nation will be at the heart of her campaign.

“I’m here to stand up for Quebec, to stand up for French and to stand up for the distinct identity of Quebec,” she said, noting that several Quebec MPs, including caucus chair Stéphane Lauzon, support her campaign.

Earlier Sunday, Ms. Gould announced her candidacy at a restaurant in her home riding of Burlington, Ont., west of Toronto. She said she will be leaving the front bench to seek the party’s top job.

Ms. Gould, the youngest candidate in the race, billed herself as the best choice to renew the party. She also said she would scrap a planned increase to the federal carbon price on April 1, but wouldn’t commit to immediately cancelling the levy, saying Canadians are committed to fighting climate change.

She acknowledged that Canadians “have lost trust in our party,” adding that it must be rebuilt.

“It is time for a new generation of leadership, a generation of leadership that brings people along, that reaches out to those who feel they’ve been left behind. A generation of leadership who’s not going to stand behind a podium and read a speech that was prepared by somebody else,” Ms. Gould said.

On the carbon-pricing regime, Ms. Freeland said people understand the need to fight climate change but Canadians in provinces where there is a consumer-facing price on carbon have expressed they do not like it.

“Democracy means when people tell you something, you have to listen,” she said. “I will say, our party hasn’t been good enough at that. That has to change and I am going to change that.”

Ms. Freeland also called Mr. Poilievre weak and said he will never be able to stand up to Mr. Trump. Polls currently suggest the Conservatives will form government after the next election.

In response to Ms. Freeland launching her candidacy, Mr. Poilievre took aim at her on X as being “Just like Justin,” including her previous support for the carbon price. Mr. Poilievre issued a similar post about Ms. Gould.

Ms. Freeland was first elected as an MP in 2013. In December, she released a public letter about her decision to resign from cabinet and said it was the only honest and viable path for her.

The move set off a political firestorm, with additional calls from Liberal caucus members for Mr. Trudeau to resign. Earlier this month, Mr. Trudeau announced that he would leave his job as Liberal leader – and therefore also as Prime Minister – after the conclusion of a leadership race. He also prorogued Parliament until March 24.

Opposition parties have said they will not support the Liberal government on a confidence vote, which would kick-start an election campaign. A vote is likely to take place shortly after Parliament resumes. There is also a possibility that the new Liberal leader and prime minister could call an election even sooner.

Ms. Freeland on Sunday shed more light on her decision to leave Mr. Trudeau’s cabinet. She said the two had been in disagreement for some time over spending and this was exacerbated after Mr. Trump threatened to impose tariffs.

“At that point, I realized that we faced what could be an existential threat,” she said.

Mr. Carney, who also served as the governor of the Bank of England, made his leadership announcement in Edmonton last Thursday.

He said he believed Mr. Trudeau and his team let their attention wander from the economy too often and he promised not to do the same.

Others in the race include Liberal backbencher Chandra Arya and former MP Frank Baylis.

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