Justin Trudeau’s exit looms: Canada’s Prime Minister expected to resign as party leader

The Liberal Party lawmakers will hold a caucus meeting on Wednesday, amid increasing demands for the resignation of Prime Minister Justin Trudeau. Recent political blows and rising pressure from within his party have left him badly damaged.

The catalyst for this upheaval was the sudden resignation of Chrystia Freeland as finance minister on December 16. In an open letter, Freeland had criticized Trudeau's leadership, sending the party's tensions into a high pitch.

Trudeau's silence sparks speculation

Since leaving Freeland, Trudeau has rarely been seen publicly, and that has sparked talk about what is next for him. He spent much of the holiday season at a western Canadian resort, shunning questions over the rising discontent within his party and the rising economic concerns that afflict the country.

Economic problems and falling popularity

The Canadian economy has been experiencing growth stagnation that has further plagued Trudeau. Over the holiday period, a recent Nanos Research survey showed that the Conservative Party was widening its lead as the Liberals' poll numbers plummeted into an election year.

With the prospect of losing a near-majority in the number of parliamentarians from 153 seats, Liberals are already mounting open-ended pre-poll campaigns. Their advertisement campaigns state that the amount of money given by a Conservative government on social security schemes would be cut, a way of reflecting party pains to regain voters' confidence.

US tariff threat raises stakes

The threat of a 25% tariff on Canadian imports by incoming US President-elect Donald Trump has added to the urgency of Trudeau's decision. Liberal Party members from border provinces have expressed concerns about the economic instability that could result from the tariffs.

The country could face significant instability, especially from an economic threat like a 25% US tariff," said Kody Blois, leader of the Liberal caucus in Canada's eastern provinces, in a letter to party members.

Leadership race looms

Nik Nanos, founder of Nanos Research, said that resignation as party leader would undermine his bargaining power when dealing with the new US administration. In this case, a leadership race in the Liberal Party will result in an automatic prime minister in the newly elected leader.