Facing mounting pressure within his Liberal Party due to criticism over his economic policies and threats from President-elect Donald Trump, Canadian Prime Minister Justin Trudeau announced his resignation on Monday. He will step down once the party selects a new leader.

“I intend to resign as party leader and Prime Minister after the party selects its next leader through a competitive nationwide process,” Trudeau stated. “Last night, I asked the Liberal Party president to initiate this process. Canadians deserve a clear choice in the next election, and it’s become evident that internal conflicts prevent me from being the best candidate.”

“I’m a fighter and don’t shy away from challenges, especially important ones. But my love for Canada, my commitment to serving Canadians, and their best interests guide me. Canadians deserve a real choice in the next election, and internal battles make it clear I can’t lead the Liberals,” Trudeau added.

Trudeau, prime minister for almost a decade, had been struggling with growing public dissatisfaction over the rising cost of living and inflation.

While no formal mechanism existed to remove him, he faced either a potential no-confidence vote in Parliament or a difficult fight to retain his position until the October 2025 election – both scenarios likely leading to his downfall.

Calls for his resignation intensified, including from opposition leaders, following the resignation of Finance Minister Chrystia Freeland. Freeland’s resignation letter sharply criticized Trudeau’s handling of economic policies and Trump’s threats.

Freeland, a key Trudeau ally instrumental in the 2020 USMCA deal, declared that Trump’s threat of a 25% tariff on Canadian imports “will define us for a generation, and perhaps longer.”

“For weeks, we’ve disagreed on the best path forward for Canada,” she wrote. “Our country faces a serious challenge.”

“The incoming U.S. administration is pursuing a policy of,” she continued, urging stronger resistance to Trump’s potential tariff war.

Freeland’s comments resonated throughout the Canadian government, with widespread support for her stance. 

Trudeau, who appointed Dominic LeBlanc as the new finance minister, subsequently met with his caucus. He acknowledged listening to their concerns and would reflect on them.

Trudeau’s resignation allows the Liberal Party to appoint an interim prime minister until next fall’s election, potentially revitalizing their chances. 

While the next leader remains uncertain, LeBlanc – who recently met with Trump at Mar-a-Lago alongside Trudeau – is considered a leading contender.

Trump has yet to comment publicly on Trudeau’s resignation, and his transition team did not respond to prior inquiries regarding his influence on Canadian politics.