Canada at a Crossroads

Justin Trudeau, once a rising young politician who went on to win his third consecutive general election to serve his third term as the Canadian Prime Minister since taking office in 2015, is now announcing his resignation as both the Leader of the Liberal Party and the Prime Minister on January 6, 2025, from the esteemed post, as expected by many news outlets.

This unprecedented move is following several continuous setbacks tarnishing his already bruised reputation among the Canadians and the international community, putting him under pressure to quit for several months by citizens, opposition leaders and even members of his own Liberal Party. Even though he will be operating as the ‘caretaker prime minister’ for the time being, Canada has now sunk further into economic and political turmoil without any optimism in the foreseeable future.

While Trudeau entered office in 2015 with a wave of optimism and progressive policies, the last few years have been marked by significant hurdles for Canada’s economy and leadership. The ambitious promises laid out by Trudeau for better economic growth have clearly fallen short as the Canadian economy’s performance was in its worst period under his leadership as the growth rate for GDP per capita fell from 0.5% to 0.3% and the fiscal deficit grew by 600% in 2023-24 from 2014-15 when he took up office.

On the political front, the past year has seen five top government officials resigning from their posts in Trudeau’s government including the Deputy Prime Minister and Finance Minister, Chrystia Freeland. These are a consequence of the internal politics currently occurring in the Liberal Party, with Justin Trudeau at the centre of all discontent as several MPs publicly demanded his resignation due to his incompetence as both the Prime Minister and the Party Leader and 131 out of the 153 Liberal Party MPs, a massive 86%, have withdrawn support to Trudeau. Trudeau’s approach to climate policies, international relations, and domestic economic reforms has seen mixed reactions, leading to widespread criticism and doubts about his leadership.

Additionally, political changes across the border have worsened Trudeau’s stance. The US President-elect Donald Trump raised tensions with his controversial remarks towards Canada as the ‘51st State of the United States’ and Justin Trudeau as the ‘Governor of Canada’. Canada is also not spared from the aggressive tariff regime Trump plans to impose on its trading partners as he has threatened to impose a 25% tariff on all trade with Canada. If conditions already weren’t worse for Canada’s economy with rising inflation and skyrocketing housing costs, such a high import tariff by its largest trading partner could result in a catastrophic chain of events affecting all Canadians.

The upcoming few months will decide the future of Canada as the Liberal Party will be scrambling to appoint its new leader as several names emerge willing to take over the reigns including former Bank of Canada Governor Mark Carney and former Finance Minister Chrystia Freeland. The party is under pressure to choose a leader by March to prevent a no-confidence vote by the Opposition, which could lead to early elections. On the other hand, The Conservative Party, under Pierre Poilievre's leadership, is building momentum, with recent polls showing a notable lead over the Liberals. Canada is now at a critical turning point in the post-Trudeau era. The leadership choices ahead will play a key role in shaping the country's future, impacting domestic policies, economic stability, and its position on the global stage.