Prime Minister Justin Trudeau’s resignation as Liberal leader comes just two weeks before Donald Trump takes office as US president, threatening to impose 25 per cent tariffs on all Canadian imports on day one.
Trudeau said he will stay on as prime minister until his successor is chosen, raising the prospect that Canada will have a lame-duck prime minister as its biggest trading partner hits its exports with high tariffs.
The resignation means there is little Trudeau can do now to fend off Trump’s tariff threat, says David MacNaughton, whom Trudeau appointed as Canada’s ambassador to the U.S. in 2016.
“The reality is that today you announce that you’re resigning, your power, your influence disappears almost immediately,” MacNaughton told CBC News on Monday.
He says Trudeau should have made the move months ago to ensure the government was prepared for Trump’s possible return to the White House.
“We’re going to have a few months of uncertainty now … and in the meantime, Trump is feeling pretty cocky these days.”
Trudeau’s resignation leaves Canada and its economy vulnerable to anything Trump plans to impose, says Xavier Delgado, senior program fellow with the Wilson Center’s Canada Institute in Washington.
“It’s an extraordinary time for the prime minister to announce that he’s stepping down,” Delgado said. “In the context of Canada-US relations, it really doesn’t make a lot of sense.”
“People in Canada like being the 51st country”
Trump reacted to Trudeau’s resignation with a post on his “Truth Social” platform.
“A lot of people in Canada like being the 51st country. The United States can no longer suffer the massive trade deficits and subsidies that Canada needs to stay afloat. Justin Trudeau knew that and resigned,” said Trump in the post.
“If Canada were to merge with the US,” Trump continued, “there would be no tariffs, taxes would be greatly reduced, and they would be COMPLETELY SECURED from the threat of Russian and Chinese ships constantly surrounding them. Together, what a great Nation that would be!!!”
Trudeau’s decision to resign is raising questions about how the government will handle negotiations with the Trump administration.
Prime Minister Justin Trudeau said the Liberal government will remain “singularly focused” on protecting Canadian interests and continue to “fight for the economy” even as the party undergoes a leadership race following his resignation announcement.
“By announcing that he is resigning, Trudeau effectively becomes a lame-duck prime minister,” Delgado said. “He doesn’t really have a term, given the fact that people down here in Washington know he won’t be around much longer.”
Trudeau cites need to “stand up for Canadians”
During his news conference outside Rideau Cottage, Trudeau was asked how the government can protect Canada from the threat of tariffs if top cabinet ministers are embroiled in a leadership race.
“The government and cabinet will still be very focused on the work Canadians elected us to do in 2021, which is to fight for their interests, stand up for their well-being and make sure Canadians are protected and strong. Trudeau said.
“I can assure you that the means and the need to stand up for Canadians, to protect Canadians in their interests and to continue to fight for the economy, is something that everyone in this government will focus on very special.”
Trudeau did not directly answer a question about whether Liberal leadership contenders will be asked to step down during the race.
Several senior cabinet ministers working on the Canada-US file — including Foreign Affairs Minister Mélanie Joly and Finance Minister Dominic LeBlanc — are considered contenders for the leadership.
The pair traveled to Trump’s Mar-a-Lago resort in late December to meet with two of the president-elect’s cabinet members and brief them on Ottawa’s plan to improve border security, which Trump has asked if Canada hopes to avoid cracking down on tariffs.
Speaking to reporters Monday afternoon, Ontario Premier Doug Ford says Justin Trudeau’s number one focus ahead of his resignation should be creating a plan to fend off Donald Trump’s tariff threat.
Trudeau’s resignation “couldn’t have come at a worse time for U.S.-Canada relations,” said Laura Dawson, executive director of the Future Borders Coalition, an organization made up of business leaders in both countries.
“The government is in this way a caretaker,” Dawson said in an interview with CBC News. “The relationship (with the US) simply cannot afford to be put on hold like that.”
Dawson says she’s not sure if Trudeau’s resignation puts Trump in a stronger negotiating position on tariffs, but says it means Canada now lacks the capacity to respond quickly and nimbly to any issue of cloud raised by Trump.
“Who’s driving this bus?” she asked. “There is no leadership.”
President Joe Biden’s press secretary described Trudeau as “a staunch friend of the United States” in comments to reporters on Monday.
“We have worked closely together on the full range of issues facing our countries and the world as close allies, neighbors and as members of the G7,” said Karine Jean-Pierre. “The president is grateful for the prime minister’s partnership in all of this and for his commitment to protecting North America from the geopolitical threats of the 21st century.”
In addition to announcing his resignation as Liberal leader and as prime minister once a new leader is elected, Justin Trudeau says he has asked the Governor General to suspend Parliament until March 24. Here’s everything you need to know about what that means — and what happens next.
