Investing.com — Canadian Prime Minister Justin Trudeau is facing increasing calls from his party members to resign. This development comes ahead of a planned party meeting to take place this week. Trudeau is expected to make a statement Monday at 10:45 a.m. local time in Ottawa, the country’s capital.
Trudeau, who has been in power for almost a decade, reportedly spent the holidays pondering his future. Some local reports suggest he could consider resigning before the party’s meeting meets on Wednesday. However, Trudeau’s spokespeople have not yet responded to requests for comment.
If Trudeau steps down, he would leave as one of Canada’s most unpopular political figures, potentially leaving his party in a weakened state and the country facing an uncertain economic future. This uncertainty is exacerbated by incoming US President Donald Trump’s promise to impose a 25% tariff on Canadian imports.
The prime minister’s political position is shaky, especially in the wake of a voter backlash against progressive politics, economic decline, dissatisfaction with aggressive climate policies and growing resistance to immigration. Trudeau’s grip on power was further destabilized last month when the New Democratic Party, which had supported his minority government, announced it was withdrawing its support.
The announcement came shortly after the resignation of Finance Minister Chrystia Freeland, who resigned over disagreements with Trudeau’s spending proposals. Freeland, who was also deputy prime minister, left the cabinet because she felt Trudeau was not taking adequate measures to prepare for a possible trade war with Washington.
Calls for Trudeau’s resignation have grown louder within his party as Liberal Party polls have fallen. The public blames Trudeau for rising costs and housing shortages, which have been exacerbated by looser immigration policies.
Polls from late 2024 and early this year show Trudeau’s approval rating has fallen to around 20%, with the Liberal Party trailing the Conservatives by more than 20 percentage points.
“With Trudeau’s impending resignation, it appears that a Conservative-led government in Canada is getting closer, and we can now say with more than 50% certainty that the Conservatives or a Conservative-led coalition will govern Canada in 2025. says Thierry Wizman, Global FX & Rates Strategist at Macquarie.
“That realization should help keep the CAD afloat; it could well be a summit already – that is, sooner than would otherwise have been the case – on better structural growth prospects for Canada after the election.”
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