Canadian Prime Minister Justin Trudeau resigns from leadership of the Liberal Party

Canadian Prime Minister Justin Trudeau announced on Monday that he will step down as leader of the ruling Liberal Party, but will remain as prime minister until a new leader is chosen.

“I intend to resign as party leader, as prime minister, after the party chooses its next leader through a robust process,” he said during a press conference on Monday. “I can't be the person who holds the liberal standard in the next election.”

He added that the Canadian Parliament will be postponed until March.

If I have one regret, especially as we approach this election… I wish we had been able to change the way we elect our elected officials.

Local newspapers reported that he was expected to announce his resignation before a major national party meeting on Wednesday. Canadian stocks rose slightly on the news. The S&P TSX rose 0.1%, and the Canadian dollar gained 0.5% to 1.4373 against its US counterpart. The iShares MSCI Canada ETF (EWC) rose 0.5%.

Canada's latest political crisis was sparked by the abrupt departure of former Trudeau ally and Deputy Finance Minister Chrystia Freeland, who resigned in December, citing disagreements over Ottawa's response to potential U.S. trade nationalism over the next four years under the incoming Donald Trump administration.

Dominique LeBlanc has since been appointed to replace her and head the Finance Ministry portfolio.

Trudeau, 53, who took office in 2015 and won re-election twice, has suffered a drop in voter popularity to just 19% in the wake of Freeland's departure, according to pollster Abacus Data. Found on December 17th. Angus Reid declared 30 December a “painful year for the federal Liberals” and assessed Only 16% of popular support For the party — its weakest level since the institute began tracking in 2014.

The opposition Conservative Party now leads by more than 20% in opinion polls ahead of a general election expected by late October — and its controversial leader, Pierre Poilievre, has drawn praise from Trump ally Elon Musk, who… He praised “His wonderful interview.”

Despite growing calls for his resignation, Trudeau has objected to making the move since mid-December, and the Liberal Party lacks a mechanism to expel its leader without approval.

In a new blow to Trudeau, Jagmeet Singh, leader of the left-aligned New Democratic Party, made the announcement on December 20. In an open letter Intent to introduce a motion to overthrow the Trudeau government, paving the way for an election.

“Justin Trudeau has failed in the most important task of a prime minister: working for the people, not for the powerful,” Singh said, according to a CNBC translation. “Justin Trudeau's Liberals made so many beautiful promises. And yet they let people down, time and time again.”

Trudeau has recently overseen a Canadian economy that has just successfully brought inflation below its 2% target. In NovemberBut they still suffer from household debt, High unemployment ratesthe Worst production performance At the OECD in 2023 and overall US exposure – where President-elect Trump, belittling “Governor” Trudeau, has already raised the possibility of both. 25% tariffs and annexation.

Disagreements over Canada's response to Trump's “aggressive economic nationalism” led to Freeland's split with Trudeau last month.

“We have to take this threat seriously,” she warned. In her resignation letterEmphasizing the “serious challenges posed by the United States” he urged that “America First” economic nationalism be countered by a determined effort to fight for the capital, investment and jobs it creates.

— CNBC's Fred Imbert contributed to this report.