Justin Trudeau leaves a wrecked party and divided Canada

Mark Carney and Chrystia Freeland are among those tipped as the next Liberal leader

Al Majalla

Justin Trudeau leaves a wrecked party and divided Canada

On 6 January, Justin Trudeau, Canada’s prime minister, announced his resignation after weeks of speculation and a mounting political crisis. The Liberal Party has won three successive elections since 2015 under his leadership. But over the past year, he has become an isolated and deeply polarising figure as supporters have abandoned the party, angry that it has failed to tackle inflation, housing costs and the strains from high immigration. In the coming weeks, the Liberals will be gripped by a leadership struggle. Canada faces an election which must be held by October. It will be fought over his deeply flawed legacy, and how the next government responds to a looming trade war, geopolitical risks and a sluggish economy.

“This country deserves a real choice in the next election,” Mr Trudeau said. “It has become clear to me that if I am having to fight internal battles, I cannot be the best option in that election.” He joins a growing list of progressive leaders done in by their failure to address the anxieties of ordinary voters, many of whom are shifting to populist parties. Among those crowing over his exit will be President-elect Donald Trump, whose contempt has been laid bare recently in a stream of social media posts, dismissing Mr Trudeau as the “governor” of “the Great State of Canada” and urging Canadians to consider becoming the 51st member of the United States. The rampant Conservative Party, led by Pierre Poilievre, will be watching who the Liberals pick next and eyeing a landslide election victory.

Mr Trudeau’s arc has been vertiginous. He took his Liberal Party from third place to a majority mandate in 2015 by winning over a wide swath of the electorate, including the working-class, indigenous and first-time voters. He championed the causes that animated progressive politics a decade ago, such as climate change and minority rights. He won praise in his first term for reducing child poverty and negotiating with a truculent first-term President Trump to renew the North American Free Trade Agreement.

Elections in 2019 and 2021 saw him return with reduced support and minority mandates. Much of his political capital was squandered when the Liberals failed to recalibrate in the wake of the pandemic, as voters’ priorities shifted to inflation, housing and immigration. Mr Trudeau and his party offered pious sermons that railed against their Conservative rivals’ coarser tactics rather than pragmatic solutions to the problems that bedevilled anxious voters.

Trudeau's successor will inherit a smoking husk of a party. The Liberals face dreary electoral prospects after almost a decade in power.

Mr Trudeau's successor will inherit a smoking husk of a party. The Liberals face dreary electoral prospects after almost a decade in power and by Mr Trump's plans to hobble the Canadian economy with a 25% tariff on all of its exports to the United States. A survey taken last month by the Angus Reid Institute, a pollster, suggests the Liberal Party is supported by just 16% of voters, compared with the 45% who support Mr Poilievre's Conservatives.

That represents a new low for one of the world's most successful political organisations. The Liberals have been in power for 93 of the past 129 years. The party garnered the support of 19% of voters in the 2011 election when they were led to their first and only third-place finish by Michael Ignatieff.

The Liberals' meagre support is mirrored in its bank accounts. In the first nine months of 2024, the Conservatives raised some C$29mn ($20mn), three times what the Liberals managed. This feeble fundraising has shown up in the paltry number of advertisements for the Liberals on television, radio and the web; there isn't a hockey game or home-renovation show that isn't flooded with Mr Poilievre's face and Conservative slogans.

And if that were not enough to dispirit Mr Trudeau's successor, there is the fact that the next Liberal leader and prime minister will probably only have a few weeks on the job before facing ornery voters. A general election is scheduled for October, but it will almost certainly come sooner. The three opposition parties in Canada's Parliament, which the Liberals control as a minority, have all vowed to bring down Mr Trudeau's party as soon as they get an opportunity to vote no confidence in the government.

Dave Chan / AFP
Canadian Prime Minister Justin Trudeau speaks during a news conference at Rideau Cottage in Ottawa, Canada, on January 6, 2025.

Parliament was due to return from holiday on 27 January, but Mr Trudeau has "prorogued" it, aborting the current session and leaving parliament suspended until 24 March. That gives his party a ten-week sprint to choose a successor, develop an electoral blueprint, and face almost certain defeat in the House of Commons. Canadians will probably vote in May in that scenario.

Despite the formidable obstacles, there is no shortage of candidates both inside and outside the current Liberal government who have been positioning themselves for months to succeed Mr Trudeau. Mark Carney, who ran the Bank of England and, before that, the Bank of Canada, will jump into the race if the party does not opt to choose a new leader from among those already sitting in the Liberal caucus. Chrystia Freeland, whose surprise resignation on 16 December as finance minister precipitated the crisis that forced Mr Trudeau out, is being urged by fellow Liberal MPs to join the fray. Dominic Leblanc, who succeeded Ms Freeland as finance minister, would find substantial support among the Liberal caucus.

Whoever becomes leader must prepare to fight an election campaign that will turn, in part, on which party is best positioned to confront the challenge of Mr Trump. He will be inaugurated on 20 January and has said he will immediately impose tariffs on Canada. Trevor Tombe, an economist at the University of Calgary, estimates that a 25% tariff would shave 2.6% off Canada's GDP and tip the economy into recession.

But the election will also be a battle over Canada's identity; a decade of progressive liberalism has ended in widespread disillusionment. Far more than the Liberal Party's fortunes will be at stake when they select their next leader. 

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