News / Trump's tariff pledge prompts Trudeau resignation

After nearly a decade in office, Justin Trudeau today announced his resignation as Canada’s prime minister, citing the paralysis the country’s parliament has experienced in recent months, but the decision also follows the fallout from US president-elect Trump’s impeding tariff policy.

Just before Christmas, The Loadstar reported the resignation of Mr Trudeau’s deputy PM, Chrystia Freeland, with her citing the government’s response to those tariffs.

In her resignation letter, Ms Freeland made clear that she “found herself at odds” with Mr Trudeau over the “best path forward” in the wake of Mr Trump’s tariff pledge, and her concern that Canada needed to get ahead of the “America First” policy.

She wrote: “Our country faces a grave challenge. The incoming administration in the US is pursuing a policy of aggressive economic nationalism, including a threat of 25% tariffs.

“We need to take that threat extremely seriously. That means keeping our fiscal powder dry, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks… which make Canadians doubt we recognise the gravity of the moment.”

Mr Trump warned shortly after his electoral victory that one of his first acts would be to sign an executive order that would implement a 25% tariff on all Canadian products in the US.

While many suggested this was simply the president-elect setting out a negotiating position, Mr Trump has since doubled down, with Mr Trudeau being castigated in the Canadian press as being too cooperative to the looming threat of US nationalism.

Quoted in MarketWatch before news of the resignation broke, president of Spectra Markets Brett Donnelly said: “Trudeau does not look to have a strong hand against Trump.”

Mr Donnelly added: “The whole situation has become kind of embarrassing for Canada, and there is a greater chance Trump continues to troll Canada with Trudeau in charge,” a reference to Mr Trump repeatedly describing his opposite number in Ottawa as ‘Governor’ Trudeau.

After Mr Trudeau’s failure to win Mr Trump over with a November meeting at the president-elect’s Florida home, other ministers have attempted to soothe relations.

In the closing days of 2024, finance minister Dominic LeBlanc and foreign affairs minister Melanie Joly met with Mr Trump’s proposed picks for commerce and interior secretaries, Howard Lutnick and Doug Burgum.

Mr LeBlanc’s spokesperson said the meetings were “positive” and “productive”, however, it has been reported elsewhere that Mr Trump may be holding out for Canadian elections.

As things stand, Mr Trudeau’s Liberal Party could be on course for being replaced by their Conservative opposition, which boasts friendly ties with the Trump administration and, in particular, his incoming vice president, JD Vance.