Canada: Trudeau one step closer to resignation as G7 presidency approaches

Canada’s political stability falters as Justin Trudeau faces an unprecedented internal crisis, with the shadow of resignation looming

As Canada prepares to lead the G7 presidency, its reputation as a bastion of political stability is being challenged by a crisis that threatens to engulf the government of Justin Trudeau. The prime minister, who has been in power for almost a decade, may not be able to hold office until the June summit in Kananaskis, Alberta. The leaders of the world powers could therefore be greeted by a new face in Trudeau’s place.

According to recent reports on CNN, Trudeau is reportedly considering stepping down in early 2025. A step that would pave the way for new early elections or the appointment of an internal successor to the Liberal Party, which is currently going through a difficult period. Indeed, current polls show that Trudeau’s party is far behind the Conservatives, with a gap of about 20 percentage points. Making his position even more fragile are the tensions within his own political camp.

In addition to economic problems, in particular inflation and the immigration issue, the crisis has deepened with the recent threat of 25% tariffs by US President-elect Donald Trump. These trade tensions have reignited disagreements between the two countries, especially after Trump jokingly proposed turning Canada into the American ‘51st state’ during a dinner with Trudeau at Mar-a-Lago. However, the president-elect’s words were not limited to irony: Trump also publicly attacked the Minister of Finance, Chrystia Freeland, after her resignation in December.

Freeland, a key figure in the Canadian government since 2015, left her post as a sign of disagreement with Trudeau, especially regarding the government’s responses to economic pressure from the United States. In his resignation letter, he explained how his views were now incompatible with those of the premier regarding the challenges imposed by Trump’s economic protectionism. In his place, Trudeau appointed Dominic LeBlanc, who was already involved in security and border dossiers during his meetings with the US.

Trump did not hesitate to severely criticise Freeland, calling her actions ‘toxic’ and declaring that Canada will not miss her, recalling the difficulties he had with her even during the Nafta negotiations.

The political crisis, however, is not only about the relationship with Trump. Trudeau is facing growing internal opposition, with members of his own party beginning to question his leadership. Jagmeet Singh, leader of the New Democratic Party, has also expressed his willingness to support a no-confidence motion against the government. This motion, announced by the Conservatives, will be debated when the House of Commons resumes work in January. Should the no-confidence pass, Trudeau will have no choice but to call new elections.

Despite the difficulties, Trudeau has not yet made it clear whether he intends to resign, but inside sources suggest he may use the winter holidays to reflect on his political future. Over the years, the prime minister has weathered several crises, but this time many observers believe his career may indeed be nearing an end.

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