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 his first day.
Trudeau has said he will remain prime minister until his successor is chosen, raising the prospect that Canada will have a lousy leader of government at a time when its largest 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 when you announce today that you are stepping down, your power and influence ends almost immediately,” MacNaughton told CBC News on Monday.
He believes Trudeau should have taken this step months ago to ensure the government was prepared for Trump's potential return to the White House.
“We're going to have a few months of uncertainty now… and meanwhile Trump's been feeling quite cocky lately.”
Trudeau's resignation leaves Canada and its economy vulnerable to whatever Trump plans to impose, says Xavier Delgado, senior program associate at the Wilson Center's Canadian Institute in Washington.
“This is an extraordinary moment for the prime minister to announce that he will step down,” Delgado said. “In the context of Canada-U.S. relations, it really doesn't make much sense.”
“People in Canada LOVE being the 51st state.”
Trump responded to Trudeau's resignation by posting about him Pravda social media platform.
“Many people in Canada LOVE being the 51st state. The United States can no longer suffer from the massive trade deficits and subsidies that Canada needs to stay in business. Justin Trudeau knew this and resigned,” Trump wrote in the post.
“If Canada joined the US,” Trump continued, “there would be no tariffs, taxes would drop significantly and the countries would be COMPLETELY SAFE from the threat of the Russian and Chinese ships that constantly surround them. Together, what a great nation this would be!!!”
Trudeau's decision to step down raises questions about how the government will handle negotiations with the Trump administration.
Prime Minister Justin Trudeau said the Liberal government will remain “extremely focused” on protecting Canada's interests and continuing the “fight for the economy” even as the party navigates a leadership race in the wake of Trudeau's resignation announcement. Trudeau made the comment when a reporter asked him how a Liberal government could protect Canada from U.S. President-elect Donald Trump's tariff threat if the Liberals focused on who would be the party's next leader.
“By announcing his resignation, Trudeau is effectively making himself a poor prime minister,” Delgado said. “He doesn't really have a mandate, given that people here in Washington know he's not going to be here very long.”
Trudeau cites need to 'stand up for Canadians'
During a news conference outside Rideau Cottage, Trudeau was asked how the government can protect Canada from the tariff threat if key cabinet ministers become embroiled in the leadership race.
“The government and cabinet will remain very focused on doing the job that Canadians elected us to do in 2021, which is to fight for their interests, defend their well-being and keep Canadians… protected and strong,” Trudeau said.
“I can assure you that the tools and the need to stand up for Canadians, protect Canadians in their interests and continue to fight for the economy is something that everyone in this government will be extremely focused on.”
Trudeau did not directly answer a question about whether Liberal leadership candidates would have to resign during the race.
Several top cabinet ministers working on the Canada-U.S. file – including Foreign Minister Mélanie Joly and Finance Minister Dominic LeBlanc – are considered leadership candidates.
Couple went to Trump's Mar-a-Lago resort in late December to meet with two select members of the president-elect's cabinet and brief them on Ottawa's plan to improve border security, which Trump has requested if Canada hopes to avoid crushing tariffs.
On Monday afternoon, Ontario Premier Doug Ford told reporters that Justin Trudeau's top priority before resigning should be developing a plan to avoid Donald Trump's tariff threat.
Trudeau's resignation “could not come at a worse time for U.S.-Canada relations,” said Laura Dawson, executive director of the Future Borders Coalition, an organization of business leaders from both countries.
“The government is in caretaker mode,” Dawson said in an interview with CBC News. “We cannot afford to suspend relations (with the US) like this.”
Dawson says she's not sure if Trudeau's resignation gives Trump a stronger negotiating position on tariffs, but she says it currently means Canada lacks the ability to respond quickly and efficiently to any new issues Trump raises.
“Who's driving this bus?” she asked. “There is no leadership.”
President Joe Biden's press secretary described Trudeau as a “steadfast friend of the United States” in comments to reporters on Monday.
“We have worked closely on the full range of issues facing our countries and the world as close allies, neighbors and members of the G7,” said Karine Jean-Pierre. “The President is grateful to the Prime Minister for his partnership through all of this and for his commitment to defending North America from 21st century geopolitical threats.”
In addition to announcing his resignation as Liberal leader and prime minister after 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, what it means – and what happens next.