Tue Jan 07 01:34:20 IST 2025: ## Trudeau to Resign as Canadian Prime Minister, Triggering Early Election Speculation

**OTTAWA, CANADA** – Canadian Prime Minister Justin Trudeau announced Monday that he will resign as leader of the Liberal Party, triggering a leadership race and potentially setting the stage for an early federal election. While he will remain Prime Minister until a successor is chosen, the move comes amidst plummeting approval ratings and growing political instability.

Trudeau cited internal party struggles and a need for a “reset” as reasons for his decision. He announced the prorogation of Parliament until March 24th, when a confidence vote will be held. This follows months of what he described as obstruction and lack of productivity.

The announcement follows a period of significant political turmoil. The departure of former Deputy Prime Minister and Finance Minister Chrystia Freeland in December, over disagreements regarding the response to potential US trade protectionism under the Trump administration, significantly impacted Trudeau’s popularity. Polls show the Liberal Party’s support has fallen to historic lows, with the Conservative Party now holding a substantial lead.

Trudeau’s decision leaves the Liberal Party scrambling to find a new leader before the general election, currently scheduled for late October. The opposition Conservative Party, led by Pierre Poilievre, is well-positioned to capitalize on the situation.

The Canadian economy also faces challenges, including high household debt, rising unemployment, and low productivity. The ongoing threat of US trade protectionism adds further pressure. These factors likely contributed to the public’s dissatisfaction and Trudeau’s decision to step down. The impact of this announcement on the Canadian economy remains to be seen, but initial market reactions were positive, with a slight increase in the S&P TSX index and the Canadian dollar.

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