Trudeau’s Resignation: What does it mean for Canada?

How did this happen?

Speculation about Trudeau’s future has swirled for months, driven by tanking approval ratings and a string of crushing by-election losses.

The tipping point came on December 16th, when Deputy Prime Minister and Finance Minister Chrystia Freeland resigned just hours before delivering the Fall Economic Statement.

In her resignation letter, shared on social media, Freeland criticized Trudeau’s fiscal policies, describing his proposed $250 rebate cheques for Canadians earning up to $150,000 as “costly political gimmicks.”

She also expressed serious concerns about Canada’s readiness to handle the impending 25% tariffs announced by incoming U.S. President-elect Donald Trump. 

Her resignation came after discussions with Trudeau, during which he informed her that she would be shuffled out of the finance role. 

The Fallout

Freeland’s resignation deepened divisions within the Liberal Party, with a majority of MPs publicly calling for Trudeau to step down.

Adding to the turmoil, NDP leader Jagmeet Singh stated that he no longer had confidence in Trudeau’s leadership and expressed his intention to bring forward a motion of non-confidence against the government.

Meanwhile, the Conservatives, led by Poilievre, planned to introduce their own non-confidence motion when the House of Commons was set to resume on January 27th.

If supported by the NDP and Bloc Québécois, the motion would have toppled the Liberal government and forced an early election. 

What does this mean for Canada?

Facing mounting pressure from both his party and opposition leaders, Trudeau chose to resign after reflecting over the holidays. He has prorogued Parliament, delaying its return until March 24th.

During this time, the Liberal Party will hold a leadership race to elect a new leader, who will also serve as Canada’s next Prime Minister.

The next federal election is currently scheduled for October 2025, However, if a non-confidence motion succeeds when the House of Commons resumes, Canadians could find themselves heading to the polls much sooner.