Canada’s Justin Trudeau resigns

Canadian Prime Minister Justin Trudeau announced on Monday that he would step down from his position, ending a nine-year-long career that began with global acclaim but faded amid economic struggles and political controversies, after a successor is chosen.

Even before the announcement, Trudeau has not been doing great. His approval rating plummeted to 20%, with his Liberal Party trailing the Conservatives by over 20 points.

Voters blame him for rising costs, housing shortages and loose immigration policies.

Trudeau suffered under record inflation, which peaked at over 8% in 2022.

A rising housing crisis saw house prices in some areas jumping by 30%–40% in recent years and further angered the public, increasing resentment with the government.

Rising unemployment, which crossed 6% in November, further added to his woes.

Internal party divisions and leadership race
Trudeau’s resignation follows the New Democratic Party’s withdrawal of support and Finance Minister Chrystia Freeland’s exit, signaling internal fractures.

The move leaves Canada facing economic uncertainty and potential trade tensions as US President-elect Donald Trump prepares to return to office, threatening 25% tariffs on Canadian imports and stricter immigration policies.

What lies ahead?
Per Canadian laws, an election must take place by October.

Conservative leader Pierre Poilievre, riding a wave of populist support, leads in the polls. He pledges tax cuts and deregulation and opposes Trudeau’s carbon tax.

Freeland and former Bank of Canada Governor Mark Carney are also seen as frontrunners.