Locations Affected: Canada
Canadian Prime Minister (PM) Justin Trudeau has announced his resignation as Prime Minister and leader of Canada’s ruling Liberal Party on 06 January. PM Trudeau has served as the Liberal Party leader since 2013 and as Canadian PM since 2015. He will remain in office until the Liberal Party selects a new leader.
Why did PM Trudeau Resign?
PM Trudeau has been facing increasing calls to resign from Liberal parliamentarians amid low poll ratings, which forecast the Liberal Party losing the upcoming federal election that must be held before October 2025. The demand for Trudeau’s resignation intensified in December 2024 after his attempt to demote former Finance Minister Chrystia Freeland over disagreements regarding his proposals for spending and handling potential US tariffs, which ultimately led to her resignation. Freeland’s departure resulted in Trudeau losing the support of key allies, such as the New Democrats and the Bloc Québécois, who had helped the Liberals remain in power.
What: Steps Ahead for the Liberal Party
- Parliament will be prorogued or suspended until 24 March to allow the Liberal Party to select a new leader.
- The Liberal Party can either appoint an interim leader based on recommendations from parliamentary members or hold a short leadership contest. The party is expected to convene a national board meeting in the coming days to discuss the selection process.
- Several prominent Liberal leaders are being considered as Trudeau’s successor, including former Finance Minister Chrystia Freeland, Transport Minister Anita Anand, and former central banker Mark Carney
Impact of the Situation
Trudeau’s popularity has been in decline since the COVID-19 pandemic due to his inability to address inflation, unemployment, and the cost-of-living crisis. The suspension of Parliament until a new Liberal leader is chosen will delay parliamentary decisions and debates. The new leader will face the challenge of leading the Liberal Party during the upcoming elections. A no-confidence motion or a vote against a budget bill by the opposition is also possible. Opposition parties are likely to call for an early election, a move that could benefit the Conservative Party, which has seen favourable poll ratings. A change in the ruling party could bring significant shifts in legislation, trade regulations, and bilateral relationships.
