Canada’s Prime Minister Justin Trudeau makes an announcement in front of Rideau Cottage in Ottawa on Monday, January 6, 2025.
Adrian Wyld | The Canadian Press via AP
On Monday, Canada’s Justin Trudeau said he would step down as head of the ruling Liberal Party but will remain as prime minister until a new leader is elected before a general election scheduled for late October.
“I intend to resign as party leader, as prime minister, after the party selects its next leader through a robust national competitive process,” he said during a news conference Monday. “Last night I asked the president of the Liberal Party to start that process. This country deserves a current election in the next election, and it has become clear to me that if I have to fight internal battles, I cannot be the “Best choice in that election.”
He added that the Canadian parliament will be prorogued – suspending its activities – until March 24, when a vote of confidence will be held.
“Parliament has been completely overrun by obstruction, obstructionism and a complete lack of productivity in recent months. “We are now the longest-serving minority government in history and it is time for a reset,” Trudeau said.
National media had reported that he was expected to announce his resignation ahead of a key meeting of the national group on Wednesday. Canadian stocks rose slightly on the news. The S&P TSX index rose 0.1% and the Canadian dollar gained 0.5% to 1.4373 against its US counterpart. The iShares MSCI Canada ETF (EWC) rose 0.5%.
Canada’s latest political crisis was sparked by the abrupt departure of former Trudeau ally and deputy finance minister Chrystia Freeland, who resigned in December, citing differences over Ottawa’s response to potential US trade nationalism over the next four years under the incoming administration of President-elect Donald Trump. .
Dominic LeBlanc has since been appointed to replace her and head the Finance Ministerial portfolio.
Trudeau, 53, who took office in 2015 and won reelection twice, suffered a drop in popularity among voters to just 19% after Freeland’s departure, according to pollster Abacus Information. found December 17. On December 30, Angus Reid called it “a painful year for the federal Liberals” and assessed only 16% of popular support for the party, its weakest level since the institute began tracking in 2014. Trudeau’s resignation leaves his successor at most with just a few months to prepare an election campaign.
The opposition Conservative Party now has a lead of more than 20% in polls ahead of the general election, and its firebrand leader Pierre Poilievre has earned praise from Trump ally Elon Musk, who recently praised his “big interview.”
Despite growing calls for his resignation, Trudeau had opposed taking the step since mid-December, and the Liberal Party lacks a mechanism to oust its leader without consensus.
In a new blow to Trudeau, Jagmeet Singh, leader of the leftist ally New Democratic Party, announced on December 20 in an open letter intending to table a motion to overthrow the Trudeau government, paving the way for an election.
“Justin Trudeau has failed in the most important task of a prime minister: working for the people and not the powerful,” Singh said, according to a CNBC translation. “Justin Trudeau’s Liberals have made many beautiful promises. However, they have let people down, time and time again.”
Trudeau has recently presided over a Canadian economy that barely managed to reduce inflation below its 2% target. in Novemberbut still affected by household debt, increase in unemploymenthe worse productivity performance in the OECD in 2023 and the panoptic exposure to the US, where President-elect Trump, disparaging “Governor” Trudeau, has already hinted at the possibility of imposing 25% tariffs and annexation.
Differences over Canada’s response to Trump’s “aggressive economic nationalism” finally separated Freeland and Trudeau last month.
“We need to take that threat very seriously,” he warned. in his resignation letterhighlighting “the serious challenges that the United States presents” and urging us to fight “’America First’ economic nationalism with a determined effort to fight for capital and investment and the jobs they generate.”
— CNBC’s Fred Imbert contributed to this report.
