Canadian Prime Minister Justin Trudeau announced his decision to step down

Canadian Prime Minister Justin Trudeau announced on Monday that he will step down as leader of the ruling Liberal Party, but will remain as prime minister until a new leader is chosen before the general elections scheduled for late October.

“I intend to resign from the position of party leader, as prime minister, after the party chooses its next leader through a vigorous, competitive, nationwide process,” he said during a press conference on Monday. “Last night, I asked the leader of the Liberal Party to start that process. This country deserves a real choice in the next election, and it has become clear to me that if I have to fight internal battles, I cannot be the person he chooses.” “The best choice in this election.”

He added that the Canadian Parliament will be adjourned – suspending its activity – until March 24, when a vote of confidence will be held.

“Parliament has been completely overrun by obstruction, disruption and a complete lack of productivity over the past few months,” Trudeau said. “We are now the longest-serving minority government in history, and it is time to reset.”

Local newspapers reported that he was expected to announce his resignation before a major national party meeting on Wednesday. Canadian stocks rose slightly on the news. The S&P TSX rose 0.1%, and the Canadian dollar gained 0.5% to 1.4373 against its US counterpart. the iShares MSCI Canada ETF shares (EWC) rose 0.5%.

Canada’s latest political crisis was sparked by the abrupt departure of former Trudeau ally and Deputy Finance Minister Chrystia Freeland, who resigned in December, citing disagreements over Ottawa’s response to potential U.S. trade nationalism over the next four years under the president-elect. Donald TrumpThe next administration.

Since then, Dominique LeBlanc has been appointed as her successor and head of the Ministry of Finance portfolio.

Trudeau, 53, who took office in 2015 and won re-election twice, suffered voter popularity plummeting to just 19% in the wake of Freeland’s departure, according to pollster Abacus Data. Found on December 17th. The Angus Reid Institute declared December 30 a “painful year for the federal Liberals” and assessed Only 16% of popular support For the party – its weakest level since the institute began tracking in 2014. Trudeau’s resignation leaves his successor only months to prepare for an election campaign.

The opposition Conservative Party now leads by more than 20% in opinion polls ahead of the general election – and its controversial leader, Pierre Poilievre, has won praise from a Trump ally. Elon Muskwhich recently He praised “His wonderful interview.”

Despite growing calls for his resignation, Trudeau has objected to making the move since mid-December, and the Liberal Party lacks a mechanism to expel its leader without approval.

In a new blow to Trudeau, Jagmeet Singh, leader of the left-aligned New Democratic Party, made the announcement on December 20. In an open letter Intent to introduce a motion to overthrow the Trudeau government, paving the way for an election.

“Justin Trudeau has failed in the most important task of a prime minister: working for the people, not for the powerful,” Singh said, according to a CNBC translation. “Justin Trudeau’s Liberals made so many beautiful promises. And yet they let people down, time and time again.”

Trudeau has recently overseen a Canadian economy that has just successfully brought inflation below its 2% target. In NovemberBut they still suffer from household debt, High unemployment ratesthe Worst production performance At the OECD in 2023 and overall exposure to the US – where Trump, who belittles “Governor” Trudeau, has already raised the possibility of both. 25% tariffs and annexation.

Disagreements over Canada’s response to Trump’s “aggressive economic nationalism” led to Freeland’s split with Trudeau last month.

“We have to take this threat seriously,” she warned. In her resignation letterEmphasizing the “serious challenges posed by the United States” he urged that “America First” economic nationalism be countered by a determined effort to fight for the capital, investment and jobs they bring.

— CNBC’s Fred Imbert contributed to this report.