Canadian Prime Minister Justin Trudeau is expected to step down as leader of the Liberal Party, possibly as early as Monday, according to a report by Fox News.
The Globe and Mail, citing anonymous sources within Trudeau’s administration, indicated that the announcement could come this week.
Liberal Party lawmakers are set to convene for a caucus meeting on Wednesday amidst growing demands for Trudeau’s resignation as party leader.
It remains unclear whether Trudeau will also vacate the role of prime minister. However, stepping down as party leader would prompt a leadership race, with the new leader automatically assuming the position of prime minister.
Mounting Pressure
Trudeau has faced increasing scrutiny since Chrystia Freeland resigned as finance minister on December 16, issuing a public letter criticizing his leadership.
Since Freeland’s abrupt departure, Trudeau has largely remained out of the public eye, spending much of the holiday season at a resort in western Canada, without signaling his intentions for the future.
The Liberal Party’s prospects in the polls have also been declining amid stagnant economic growth. A recent Nanos Research survey conducted over the holidays showed the Conservative Party widening its lead as the country enters an election year.
To counter fears of losing a significant number of their 153 parliamentary seats, the Liberals have launched pre-election ads warning that the Conservatives would slash social security programs.
Economic Concerns
Liberal Party representatives from border provinces told Bloomberg that economic instability, particularly the threat of a 25% tariff on Canadian exports from U.S. President-elect Donald Trump’s administration, has added urgency to Trudeau’s decision.
“The country could face significant instability, especially with the potential for a 25% U.S. tariff on Canadian imports,” wrote Kody Blois, leader of a Liberal group from Canada’s easternmost provinces, in a letter to party members.
Nik Nanos, founder of Nanos Research, told Bloomberg that if Trudeau resigns as party leader, he is unlikely to be in a strong position to negotiate with the incoming U.S. administration.
