Canadian Prime Minister Justin Trudeau Resigns

What Happened?

After nine years in office, Canadian Prime Minister Justin Trudeau announced his resignation, citing internal political opposition as the reason.

‘This country deserves a real choice in the next election,’ Mr. Trudeau said. ‘It has become clear to me that if I am having to fight internal battles, I cannot be the best option in that election.’

The embattled PM also said he would remain at the helm until a new party leader is chosen, which would likely be in March 2025.

Exactly who might take his place remains unknown, but former Finance Minister Chrystia Freeland, Transport Minister Anita Anand, and formal central banker Mark Carney have all been mentioned in Canada as possible replacements.

Why it Matters

As The Economist recently reported:

‘Over the past year he (Mr. Trudeau) has become an isolated and deeply polarizing figure as supporters have abandoned the party, angry that it has failed to tackle inflation, housing costs and the strains from high immigration. Canada faces an election which must be held by October. It will be fought over his deeply flawed legacy, and how the next government responds to a looming trade war, geopolitical risks and a sluggish economy.’

According to Valerie Lacarte, a senior analyst at the U.S. Immigration Policy Program at Migration Policy Institute, ‘PM Trudeau's resignation is in part due to the shift of Canadians' views on the benefits of immigration.’

What happens next for Canada?

Parliament will be suspended until March 24. It was due to resume on Jan. 27 and opposition parties had vowed to bring down the government as soon as they could.

With parliament now not due to return until March, the earliest parties could present a non-confidence motion would be in May. If a non-confidence motion were to pass, it would trigger an election.

That is likely to happen since according to Canadian law an election must be held by October 20, 2025. 

How it Affects You

President-Elect Trump has threatened to impose tariffs on Canada if it doesn’t tighten its immigration policies. Illegal immigrants sometimes use Canada’s comparatively more lax system to first get to Canada so they can then cross into the United States.

Laura Kelly of The Hill reported:

‘Christopher Sands, director of the Wilson Center’s Canada Institute, said he wouldn’t be surprised if Liberals moved quickly to hold elections and put in place a new prime minister. This could demonstrate some stability ahead of Trump’s inauguration on Jan. 20 and give extra time for the Liberals to sell their new leaders to Canadians ahead of general elections.’

With Canada politically divided and currently leaderless, Mr. Trump would have an advantage since Republicans now control the White House and both chambers of Congress.