The Prime Minister faced growing pressure to resign from his party for several months, which intensified following Finance Minister Chrystia Freeland’s resignation on December 16, stemming from disagreements with him on political issues. As reported by the Canadian Broadcasting Corp., Trudeau announced his resignation as leader of the Liberal Party of Canada on Monday morning.
His office had planned an announcement at 10:45 a.m. in Ottawa. Several Liberal Members of Parliament have publicly urged his departure, and others expressed privately that he must resign. Currently, the Liberal Party holds 153 seats in the House of Commons, including Trudeau’s.
Concerns about potential instability in the country, particularly with risks of economic repercussions from anticipated import tariffs under a new U.S. administration, were raised in a letter to Trudeau from Kody Blois, a Liberal member representing eastern provinces. The letter emphasized the urgency for Trudeau to step down.
Financial markets responded positively to reports of his probable resignation, indicating that traders were optimistic about resolving uncertainties in Canadian policy.
Since Freeland’s resignation, Trudeau has been largely out of sight, spending time at a ski resort and avoiding media interaction. Should he officially resign, it is expected to spark an internal party contest to determine his successor. If he resigns immediately, an interim leader would likely be chosen from his elected caucus.
The upcoming political landscape is uncertain, especially as Parliament may soon face votes of non-confidence, which could compel the government to act quickly. The rules surrounding the leadership contest are anticipated to be contentious, and Freeland is seen as a major candidate should such an opportunity arise. Other potential successors include former Bank of Canada Governor Mark Carney.
Trudeau’s reluctance to step down might hinder the party’s ability to address rising public discontent and the growing lead of the Conservative Party in election polls, which was highlighted by recent research indicating a significant challenge ahead for the Liberals.