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Canada’s Trudeau announces resignation following party pressure amid criticisms of Trump, budget handling

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January 6, 2025
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Canada’s Trudeau announces resignation following party pressure amid criticisms of Trump, budget handling

Canadian Prime Minister Justin Trudeau announced on Monday that he intends to resign as party leader and prime minister after pressure from within his own Liberal Party increasingly grew amid heightened criticisms over his handling of the economy and threats levied by President-elect Donald Trump. He said he will resign once the party selects a new leader. 

I intend to resign as party leader, as Prime Minister, after the party selects its next leader through a robust nationwide competitive process,’ Trudeau told reporters. ‘Last night, I asked the president of the Liberal Party to begin that process. This country deserves a real choice in the next election, and it is become clear to me that if I’m having to fight internal battles, I cannot be the best option in that election.’

‘As you all know, I am fighter and I’m not someone who backs away from a fight. Particularly when the fight is as important as this one is. But I have always been driven by my love for Canada, by my desire to serve Canadians, and by what is in the best interests of Canadians and Canadians deserve a real choice in the next election,’ Trudeau added. ‘And it has become obvious to me with,, the internal battles that I cannot be the one to carry the liberal standard into the next election.’

Trudeau, who led the nation for nearly a decade, has been grappling for months with significant drops in his approval ratings over mounting frustration relating to issues like the soaring cost of living and rising inflation. 

Though there was no official path for his party to boot him from the top job, the now nearly-former prime minister faced either the threat of a Parliamentary vote of no confidence, or a lengthy fight to hold on to his position until the October 2025 elections – either option was expected to see a crushing end to Trudeau’s time in office.

The long-time prime minister saw an increase in calls for his resignation, with at least seven Liberal Members of Parliament as well as from opposition party leaders calling on him to set aside, following the abrupt departure of his finance minister, Chrystia Freeland, who wrote a scathing letter of resignation, citing criticisms over his handling of certain economic policies as well as the threats levied by Trump.

Freeland, once seen as Trudeau’s chief ally and who helped oversee the 2020 U.S.-Mexico-Canada deal during the last Trump administration, warned that how Canada responds to Trump’s November threat to slap a 25% tariff on Canadian imports ‘will define us for a generation, and perhaps longer.’

‘For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,’ she wrote. ‘Our country today faces a grave challenge.’

 

‘The incoming administration in the United States is pursuing a policy of aggressive economic nationalism,’ she continued, urging the prime minister to show more backbone when it comes to standing up to Trump and his ‘coming tariff war.’

The comments made by Freeland sent shockwaves across the Canadian government, with many backing her calls to show strength in the face of the potentially tough economic times ahead. 

Trudeau, who appointed close friend Dominic LeBlanc to take over as finance minister, later held a special meeting with his caucus, during which, according to LeBlanc, he said that he ‘heard very clearly, and listened carefully to their concerns, and he would reflect on it.’

Trudeau’s resignation means the Liberal Party can appoint an interim prime minister to lead the country until the elections next fall, giving them potentially a fighting chance to bring renewed support back to the Liberal Party. 

It remains unclear who will likely take over Trudeau’s seat, but LeBlanc – who also met with Trump at his Mar-a-Lago residence earlier this month alongside the former prime minister – was reported to be a leading contender.

Trump has not yet pubically commented on Trudeau’s resignation and his transition team did not respond to previous Fox News Digital questions over his impact on Canadian politics. 

Related Topics

Canada Justin Trudeau Trump Transition

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