Canadian Prime Minister Justin Trudeau is reportedly weighing his resignation as leader of the ruling Liberal Party, potentially triggering a leadership crisis in the country, according to Reuters.

Resignation Speculation

Citing unnamed sources, Reuters reports that Trudeau has not yet made a final decision. However, other media outlets suggest an announcement could come as early as Monday, or by Wednesday at the latest, coinciding with an emergency meeting of Liberal Party members.

Trudeau, who has led the Liberal Party for nine years, faces declining popularity and mounting challenges. His departure would come at a precarious time for the Liberals, who are projected to lose to the main opposition, the Conservative Party, in the next federal election, which must be held by late October 2025.

Mounting Pressure on Trudeau

An increasing number of Liberal MPs have publicly urged Trudeau to step down due to dismal polling results. Calls for his resignation have intensified since December, according to Reuters.

The Prime Minister’s Office has not commented on these reports. It remains unclear whether Trudeau would step down immediately or continue as prime minister until a new Liberal leader is selected, according to The Globe and Mail.

If Trudeau resigns, it could prompt calls for an early election to establish a stable government capable of managing relations with the incoming U.S. administration under President-elect Donald Trump, who has publicly promised to ‘get tough’ with Canada on trade.

Potential Leadership Transition

Trudeau has reportedly discussed with Finance Minister Dominic LeBlanc the possibility of serving as interim leader and prime minister. However, this could complicate matters if LeBlanc decides to run for the permanent leadership role.

Compounding Trudeau’s difficulties are tensions within his cabinet. After attempting to demote Finance Minister Chrystia Freeland—one of his closest allies—over disagreements about additional spending, Freeland resigned and accused Trudeau of prioritizing “political gimmicks” over the country’s best interests in a scathing letter, says Reuters.

Trudeau’s Challenges and Legacy

Trudeau rose to power in 2015, promising “sunny ways” and a progressive agenda focused on gender equality, climate change, and economic growth. However, consecutive crises, including the COVID-19 pandemic, inflation, and a housing shortage exacerbated by increased migration, have eroded public and party support.

To address pandemic-related economic challenges, Ottawa ran record budget deficits to support consumers and businesses. However, internal party voices are now calling for fiscal restraint.