Canadian Prime Minister Justin Trudeau is reportedly contemplating resignation amid a political crisis that has already seen his finance minister step down due to President Trump's threat of increased trade tariffs.
Trudeau has hinted at either resignation or prorogation, which signifies the end of a parliamentary session, as reported by CTV News. The Prime Minister is expected to address parliament on Tuesday.
This situation marks one of the most significant challenges in Trudeau's nearly decade-long tenure as Prime Minister. His approval rating, which once soared as high as 63% during his initial election, has consistently fallen below 30% this year. The decline is attributed to economic struggles, a housing shortage, and disagreements over immigration policies. Several senior figures within Trudeau's party have also urged him to step down before the general election due next year.
In a dramatic turn of events, Deputy Prime Minister and Finance Minister Chrystia Freeland resigned just hours before she was scheduled to present the country's first economic plan in anticipation of the change in American administration. President-elect Trump has pledged an "America First" policy of economic nationalism. Freeland's resignation letter questioned Trudeau's ability to handle the tariffs threatened by the incoming Trump administration, which she described as a "grave challenge" facing the country.
Trump has vowed to impose a 25% tariff on Canadian goods, a move economists warn could have severe repercussions on an already struggling Canadian economy grappling with high inflation. Trudeau's only public comments on Monday were made during a holiday party for Liberal donors. "It's not been an easy day," Trudeau admitted, calling it one of the Liberal party's "toughest days". However, he did not disclose his future plans.
In her resignation letter, Freeland, a former journalist, publicly expressed her opposition to Trudeau's push for short-term spending on vote-winning measures that would expand the budget deficit. She revealed that Trudeau had asked her to take on a less senior post in his cabinet after weeks of arguing over spending. "Our country today faces a grave challenge," she wrote. "That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment."
Freeland's reference to "costly political gimmicks" likely alludes to disagreements between the finance department and the prime minister's office over a sales tax exemption during the Christmas holiday season. The government recently announced a tax exemption allowing Canadians to buy tax-free groceries, snacks, childrens clothing, and gifts, along with sending C$250 cheques to 18.7 million Canadians.
Following Freeland's departure, Public Safety Minister Dominic LeBlanc, a member of Trudeau's inner circle, was swiftly appointed as the finance minister of the minority Liberal government. Conservative leader Pierre Poilievre intensified his calls for the prime minister to resign, stating that the government was spiraling out of control. "We cannot accept this kind of chaos, division, weakness, while were staring down the barrel of a 25 per cent tariff from our biggest trading partner," he told reporters.
Trudeau, however, accused Poilievre of "actively willing to bet against Canadians and Canada". He claimed that Poilievre was uninterested in building homes, delivering vital supports, creating good jobs, or even cutting taxes. Trudeau faced disgruntled MPs at a hastily arranged caucus meeting following the finance ministers shock exit. Ontario Liberal MP Chad Collins, who attended the meeting, suggested that the party needs new leadership. "Im not going to breach confidentiality in terms of what happened in the caucus, but I can say were not united," he said. "Theres still a number of our members who feel we need a change in leadership. Im one of those."
Trudeau, who won the 2015 election partly due to the popularity of his late father and former prime minister Pierre Trudeau, promised "sunny ways" after almost a decade of Conservative Party rule. However, the current political climate suggests that the sun may be setting on Trudeau's tenure, with the looming threat of tariffs and internal party disagreements casting a shadow over his leadership.
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