Investing.com – Canadian Prime Minister Justin Trudeau is facing growing calls from members of his party to resign. This development comes ahead of a scheduled party meeting to be held this week. Trudeau is expected to deliver a statement in Ottawa, the nation's capital, at 10:45 a.m. local time on Monday.
Trudeau, who has been in power for almost ten years, reportedly spent the holidays considering what is to come. Some local reports suggest he may consider resigning before the party's caucus meets on Wednesday. However, Trudeau's spokespeople have not responded to requests for comment.
If Trudeau steps down, he would leave as one of Canada's most unpopular political figures, possibly 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% tax on Canadian imports.
The prime minister's political standing has been dire, especially after voter backlash against progressive politics, the economic downturn, dissatisfaction with aggressive climate policies, and increased resistance to immigration . Trudeau's grip on power was further strengthened last month when the New Democratic Party, which had been supporting his minority government, announced it would withdraw support.
The announcement came shortly after Finance Minister Chrystia Freeland resigned over disagreements with Trudeau's spending proposals. Freeland, who was also deputy prime minister, left the cabinet because she believed that Trudeau was not taking adequate steps to prepare for a possible trade war with Washington.
Calls for Trudeau's resignation have grown louder within his party as the Liberal Party's poll numbers have fallen. The public blames Trudeau for rising costs and a housing shortage, which has been exacerbated by more lenient immigration policies.
Public opinion polls conducted in late 2024 and early this year show that Trudeau's approval rating has fallen to around 20%, with the Liberal Party trailing the Conservatives by more than 20 percentage points.
“With Trudeau waiting to step down, it looks like a Tory-led government is closer to being on the way in Canada, and we can now say with more than 50% sure that the Conservatives or a Conservative-led coalition will govern Canada in 2025,” said Thierry Wizman, Global FX & Rates Strategist at Macquarie.
“That performance should help CAD stand up; they may well have already topped off—ie, sooner than otherwise—on a structurally better growth outlook for post-election Canada.”
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