Canada’s Trudeau Resigns Amid Party Pressure, Economic Backlash, and Trump’s Tariff Threats

Canadian Prime Minister Justin Trudeau announced his resignation on Monday following mounting pressure from within his own Liberal Party, collapsing approval ratings, and growing concerns over President-elect Donald Trump’s aggressive economic policies. Trudeau will remain in office until the Liberal Party selects a new leader.

After nearly a decade in power, Trudeau faced an internal revolt as at least seven Liberal Members of Parliament called for him to step aside. His exit comes in the wake of Finance Minister Chrystia Freeland’s abrupt resignation, where she blasted Trudeau’s economic policies and handling of U.S. relations.

Freeland, a key figure in negotiating the 2020 U.S.-Mexico-Canada Agreement under the first Trump administration, warned that Canada was unprepared for what she called Trump’s “coming tariff war.”

“The incoming administration in the United States is pursuing a policy of aggressive economic nationalism,” Freeland wrote in a scathing resignation letter.

She called on Trudeau to take a harder stance against Trump’s proposed 25% tariff on Canadian imports, arguing that Canada’s response “will define us for a generation, and perhaps longer.”

Trudeau’s decision to step down leaves his party scrambling to select an interim prime minister before Canada’s fall 2025 elections. Dominic LeBlanc, a longtime Trudeau ally who recently met with Trump at Mar-a-Lago, is a leading contender to replace him.

LeBlanc claimed that during a recent closed-door meeting with his caucus, Trudeau “heard very clearly and listened carefully to their concerns.”

Though Trump has not publicly commented on Trudeau’s resignation, his influence on Canadian politics is undeniable. His threat to impose steep tariffs on Canadian imports combined with Trudeau’s mismanagement of inflation and the soaring cost of living has crippled confidence in the Liberal government.

With Trudeau’s exit, Canada now faces an uncertain future as it prepares to renegotiate economic policies with a Trump administration that has made America First trade policies a top priority.

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