Canadian Prime Minister Justin Trudeau's resignation comes as the country faces the possibility of tariffs that might be imposed by President-elect Donald Trump when he returns to office later this month.
Why It Matters
Trudeau announced his resignation on Monday, saying he believes he is not the "best option" for the Liberal Party in Canada's upcoming election. The election was scheduled for October, but Trudeau's announcement means it may instead be held in the spring.
What To Know
Trump pointed to tariffs as a potential reason for Trudeau's resignation in a post to Truth Social on Monday afternoon, but one expert told Newsweek that his resignation had little to do with tariffs.
"The United States can no longer suffer the massive Trade Deficits and Subsidies that Canada needs to stay afloat. Justin Trudeau knew this, and resigned," Trump wrote.
Adam Chapnick, deputy director of education at Canadian Forces College, told Newsweek that Trudeau's resignation was unrelated to the threat of tariffs.
The tariffs "did not help" Trudeau's situation by creating uncertainty, but his resignation was moreso related to domestic issues, he said.
"As the PM mentioned in his press conference, he would have stayed on were it not for the lack of support within his caucus," Chapnick said. "That support has been declining for over a year along with the Liberals' decline in the polls. In other words, he resigned for reasons of domestic politics, not international affairs."
Trump has floated implementing a 25 percent tariff on Canadian imports as part of his sweeping tariff proposal that has sparked criticism from many economists, who have warned it would upend global trade and have potentially negative effects on the Canadian economy and auto industry.
Newsweek reached out to Trump's transition team for comment via email.
Why Did Justin Trudeau Resign?
Trudeau pointed to "internal battles" in his resignation speech.
"This country deserves a real choice in the next election, and it has become clear to me that if I'm having to fight internal battles, I cannot be the best option in that election," Trudeau said.
A growing number of Liberal Parliament members have called for Trudeau to step down as the party's leader as his popularity continues to drop. Polls have suggested he likely would have been in a difficult position to win reelection if he stayed in power. Trudeau is the latest in a series of incumbent world leaders who have either stepped down or lost elections amid a wave of anti-incumbent sentiment.
Finance Minister Resigns Partly Over Trump
Trump's reelection contributed to a clash between Trudeau and his former finance minister, Chrystia Freeland, who quit her post in December amid disagreements about how to handle tariffs from the U.S., Reuters reported.
"For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada," she wrote in her resignation letter. "Our country today faces a grave challenge. The incoming administration in the United States is pursuing aggressive economic nationalism, including a threat of 25 per cent tariffs."
She wrote that Canada needs to ''take that threat extremely seriously," including by "eschewing costly political gimmicks."
Trump Takes Credit For Trudeau Resigning (Kind Of)
Trump, whose relationship with Trudeau has long been strained, touted his resignation on Truth Social.
"Many people in Canada LOVE being the 51st State. The United States can no longer suffer the massive Trade Deficits and Subsidies that Canada needs to stay afloat," Trump wrote. "Justin Trudeau knew this, and resigned. If Canada merged with the U.S., there would be no Tariffs, taxes would go way down, and they would be TOTALLY SECURE from the threat of the Russian and Chinese Ships that are constantly surrounding them. Together, what a great Nation it would be!!!"
What People Are Saying
Adam Chapnick, deputy director of education at Canadian Forces College, in a statement to Newsweek: "Mr. Trudeau's political situation is, I think, unique to Canada. The Mexican president, for example, who is more popular at home and has a fresh mandate from Mexican voters, is not facing similar turmoil even though the tariffs would be even worse for her country than they would be for Canada."
Canadian Prime Minister Justin Trudeau, during his resignation speech: "Every bone in my body has always told me to fight because I care deeply about Canadians, I care deeply about this country, and I will always be motivated by what is in the best interests of Canadians. And the fact is, despite best efforts to work through it, Parliament has been paralyzed for months after what has been the longest session of a minority Parliament in Canadian history."
What Happens Next
Trudeau's resignation won't go into effect immediately. He plans to continue serving as prime minister until a new leader is chosen.
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