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51st or Fight: Trudeau leaves, Trump Arrives
Justin Trudeau is leaving you, Donald Trump is coming for you.
The timing couldn’t be worse. The threat couldn’t be bigger. The solutions couldn’t be more elusive.
Canada and the US are headed for a serious and economically dangerous trade war in less than two weeks, and President-elect Donald Trump, seeing Canada in a vulnerable leadership moment, smells blood.
In politics, as in most things, there is no opponent more powerful than time and, after nine years in power, time crushed Justin Trudeau’s political career. The “Sunny Ways” majority government of 2015 for Trudeau gave way to the medieval darkness of his current minority government, beset by dire polls, recurring scandals, and painful internal betrayals. What happened?
In short, there were no new policy ideas to bring back the light. The list of victories that Trudeau mentioned in his resignation speech (some genuinely transformative, others still deeply divisive) — the Canada Child Benefit that lifted over 300,000 children out of poverty (child poverty rates in Canada are now going back up), the first G7 country to put a price on carbon, renegotiating NAFTA, leading the country through the pandemic, legalizing cannabis and medically assisted dying, negotiating a health accord with the provinces, bringing in universal daycare — all these were, in the end, not nearly enough. Politics is all about tomorrow, not yesterday, and the tomorrow promise of Trudeau, once his brand, was gone.
Since the pandemic, Trudeau has been, like incumbents around the world, on his back foot on the trinity of core issues galvanizing populist support: inflation, immigration, and housing prices. His policies to address these were reactive, well behind the instincts of the leader of the official opposition, Pierre Poilievre. It didn’t help that the fiscal guardrails Trudeau had set up were blown. The Liberals were more than CA$20 billion past their target ahead of the fall fiscal update, an update his finance minister was set to give on Dec. 16. Instead, she dropped a radioactive resignation letter that very morning, pointing to Trudeau’s fiscal strategies as “costly political gimmicks” — and laying bare the internal divisions within the Cabinet. He was out of supporters, out of ideas, and looked out of touch.
It finally ended on Monday, an icy Ottawa day with the kind of cold that you can almost grab with a gloved hand and snap over your knee. The prime minister stood alone in front of the cottage where he had done so many press conferences during the pandemic and where I recall sitting to interview a gray-bearded version of him on a similarly frigid winter day back in 2020. Now, he was notably different. Stripped of the pretense and dramatics that sometimes characterized his tenure, he presented a more authentic version of the man most Canadians had long ago lost sight of, telling them that he was resigning as leader and prime minister.
For a boy born on Christmas Day, the pathetic fallacies that marked Justin Trudeau’s life had one last small signal to send. Just before he left the shelter of the cottage to make his resignation announcement, a gust of wind suddenly blew his speech off the podium, papers scattering into the January air. It was over.
For his party, Trudeau’s departure could not come soon enough, and while Liberal Party leaders are still dithering on the rules for a leadership race, the math is cruel. Parliament is prorogued — suspended — until March 24, on Trudeau’s orders. There will be a confidence vote soon after, so expect a Canadian federal election to kick off immediately and run into May. In other words, Trudeau gave the next leader a short runway — more like a cliff. The next PM will barely have time to find the bathrooms and grab a cup of coffee before they will have to hit the hustings and try to climb out of the political hole that finds them 25 points behind the Conservatives.
For Canada, this could not come at a worse time. In less than two weeks, Trump will be sworn in as US president, and he has promised to slap Canada with 25% tariffs and use “economic force” to try to absorb the country as the 51st state.
As I wrote last year, Trump’s threat to absorb Canada as the 51st state has gone from a joke to a trial balloon — and it is quickly becoming a policy goal.
Trump the Isolationist has looped inside out and become Trump the Expansionist, with designs on Greenland, Canada, and Panama. His foreign policy for Central America is basically now the famous palindrome: a man, a plan, a canal, Panama.
Is he serious?
Yes.
Always take the president of the United States seriously, especially when he says he’s being serious. He may be using aggressive rhetoric as a negotiating tool to get better deals, but the threats are very real. Trump believes in tariffs like a priest believes in God.
When Trump threatens to beggar Canada with the economic force of 25% tariffs, it is the ONLY THING THAT MATTERS.
Canadian industry is bracing for a dramatic, painful economic shock. From. Its. Closest. Biggest. Trading. Partner.
All this lines up perfectly with the Top Risks of 2025 that our parent company, Eurasia Group, released this week, as you have read about. Risks such as Trumponomics — high tariffs on all allies and foes — mixed with the risk of The Rule of Don, a mercurial leader who has destroyed norms and wants the rule of the jungle over the rule law, is a lethal combination for a middle power country like Canada.
The rules-based international order is the architecture of the multilateral world, one that the US built in its own image after World War II and, until now, has been the backstop. This order has led to incredible prosperity for both the US and Canada, and billions of others. It is now disappearing faster than the fact-checkers at Meta.
As Trump throws economic bombs, Canada will have to muddle through the next three to five months without a leader who has a national mandate, leaving premiers like Ontario’s Doug Ford to lead the fight. And credit to him: Ford, so far, has done a superb job defending his province and speaking out.
Trump is coming for Canada and wants it to be the 51st state, in part or in whole — and if there was ever a time for someone to prove they have the stuff for leadership in a time of crisis, it is now. To twist an old expression, it is the 51st or fight.
Canadians better be up for a fight.
Canada's Minister of Immigration, Refugees and Citizenship Marc Miller speaks at a press conference about the government's border plan as Public Safety and Finance Minister Dominic LeBlanc listens, on Parliament Hill in Ottawa, Ontario, on Dec. 17, 2024.
Canada does about-face on immigration
Canadian Immigration Minister Marc Miller announced last Friday that Ottawa will pause new parent and grandparent sponsorship applications to address a 40,000-application backlog. Simultaneously, thousands of migrant caregivers find themselves in limbo as the government hits the brakes on proposed pathways to permanent residency, leaving many without legal status.
The moves represent the latest reversals of Prime Minister Justin Trudeau’s ambitious immigration policies, implemented in 2016, which sought to expand family reunification and increase overall permanent residency applications to 305,000 a year. Those numbers climbed further after the COVID-19 pandemic when the government admitted over 437,000 new permanent residents and 604,000 temporary workers in 2022, and 471,550 new permanent residents and 1,646,300 temporary workers in 2023. During the same period, the government also finalized close to 2,000,000 study permits. Those permits have now been capped at 437,000 for 2025.
Immigration is seen by some as the undoing of Trudeau, who announced his resignation on Jan. 6 after nine years in power. The PM’s ambitious post-pandemic immigration targets brought the population to 40 million, but housing shortages, rising rents, and stretched social services fueled voter discontent. Traditionally low opposition to immigration soared from 27% to 58% in the past two years, “the most rapid change over a two-year period since Focus Canada began asking this question in 1977,” according to Environics.
Donald Trump faces reporters in the Oval Office on Sept. 11, 2020.
Trump vs. world
The relevant foreign leaders are having none of it. Greenland remains a part of Denmark, though it has governing autonomy on many issues, and Denmark is a member of the European Union. In response to Trump’s latest salvo, French Foreign Minister Jean-Noël Barrottold French radio “there is obviously no question that the European Union would let other nations of the world attack its sovereign borders.”
Panama's Foreign Minister Javier Martínez-Achasaid Tuesday that “the only hands operating the Canal are Panamanian and that is how it is going to stay.” The US managed the Panama Canal for decades until a treaty signed by the late US President Jimmy Carter in 1977 gave Panama full control in 1999.
And Canada’s outgoing Prime Minister Justin Trudeau said that Trump’s suggestion that the US and Canada should be part of a single country didn’t have "a snowball's chance in hell" of happening.
The odds of Trump accomplishing any of those goals is minuscule. His bargaining, in business and in politics, has always begun with startling demands meant to shock and awe the other side into concessions. But now other governments know that – and they’re more likely than during his first term as president to meet his blunt challenges with blunt responses.
Meta scraps fact-checking program: What next?
Ian Bremmer shares his insights on global politics this week on World In :60.
What do you make of Meta ending its fact-checking program?
Well, it's a direct response to Trump's victory and a little late. They probably could have done it a few weeks ago, but they wanted to line up their new board members with people that are more aligned with Trump and also their new head of public policy. Now that Nick Clegg, who was much more oriented to Harris, is gone. So, they're like everybody else, heading to Mar-a-Lago and wanting to get on board with the new administration. That is what's happening. And of course, it means implications for those concerned about safety features on social media are going to grow. This is a complete shift of the pendulum in the other direction.
What is the fallout from Justin Trudeau's resignation?
It's not surprising. He's been there for 10 years. His popularity had really fallen off a cliff. And that was even before Chrystia Freeland, his deputy prime minister, shot him in the face a few weeks ago. So, it was clear that he was going to go. The most important implication is that after elections coming up, you're likely to have a conservative government run by Pierre Poilievre, which will be much more aligned with Trump. I don't consider Poilievre's policies to be very America First-ish for Canada. He's not quite that kind of a politician. But he will be, I think, very supported by Trump, Elon Musk and right-wing populists in the United States.
So, in that regard, as you think about re-upping the US-Mexico-Canada relationship, agreement-trade relationship, you talk about tariffs and all the rest, I suspect that relationship will be more normalized and more stable for the Canadians going forward.
As Trump is about to kick off his second term, who are his friends around the world?
A lot more than he had last time around. I mean, you could focus on Argentina and President Milei. In the recent G20 Summit, Trump wasn't there yet, but Milei was. And I mean his talking points were as if Trump was in the room. Of course, Giorgia Meloni, who just made her trip to Mar-a-Lago, she's very strongly pro-EU. But she's also very aligned personally with Trump. And that is going to be a strong relationship for them.
Germans are going to have their election shortly. Friedrich Merz is likely to win. And I suspect he's going to be much closer to Trump, certainly than outgoing Chancellor Olaf Scholz has been. The Gulf States, Israel, that was Trump's first trip as president back in 2017, will be his early trip. I am very sure in this presidency, very strong relations. Don't sleep on Narendra Modi in India either. That's it for me. I'll talk to you all real soon.
Canada's Prime Minister Justin Trudeau speaks to reporters, announcing he intends to step down as Liberal Party leader, from his Rideau Cottage residence in Ottawa, Ontario, Canada, on Jan. 6, 2025.
Trudeau steps down, and a leadership race kicks off
On Monday morning, Jan. 6, Prime Minister Justin Trudeau addressed reporters on the stairs of Rideau Cottage, his official residence in Ottawa, to announce his resignation. He began by stating that “Parliament has been paralyzed for months. This morning, I advised the governor general that we need a new session of Parliament. The House is prorogued until March 24.”
This means that instead of returning on Jan. 27, as previously scheduled, the Canadian legislature will not sit for another two months. This prevents the opposition from presenting a non-confidence motion to topple the government, as it had threatened to do.
“I intend to resign as party leader and prime minister after the party selects its next leader in a robust, competitive nationwide process,” Trudeau explained. “Last night, I asked the president of the Liberal Party to begin that process.”
The move obliges Trudeau’s party to hold a rapid-fire leadership race to choose a new leader – the winner of which will face voters in an election that must be held no later than Oct. 20, 2025. This makes it difficult for the party to bring in outside candidates and instead favors current cabinet members, whom Conservative leader Pierre Poilievre wasted no time attacking.
What Poilievre really wants is an immediate election. His party is currently ahead by 25% in the polls, and he has every interest in going to voters before the Liberals have the chance to improve their fortunes.
Trudeau, meanwhile, blamed caucus infighting for his decision. “If I continue to fight internal battles, I cannot be the best option in the next election.” At the time of his resignation, 59% of Liberal Party supporters, as well as three of his four national caucuses, said he should resign. He also threw shade at former Finance Minister Chrystia Freeland, saying that he had hoped she would take on one of “the most important files in my government” but that “she chose otherwise.”
We’ll be watching to see which candidates arise as possible contenders to replace Trudeau in the weeks ahead. Possible names include Freeland, cabinet colleagues Dominic LeBlanc, Francois-Philippe Champagne, and Mélanie Joly, as well as former Bank of Canada and Bank of England Governor Mark Carney and former BC Premier Christy Clark.Canada’s Prime Minister Justin Trudeau speaks at the federal Liberal caucus holiday party, the day after Finance Minister Chrystia Freeland unexpectedly resigned, in Ottawa, Ontario, on Dec. 17, 2024.
Chances of Trudeau staying as PM drop quickly
After Finance Minister Chrystia Freelandresigned in mid-December, Trudeau was said to be considering quitting. Since then, his Atlantic and Quebec caucuses – groups of members of Parliament from regions or provinces – have said he should go, which means the majority of Liberal members of Parliament are calling on him to quit. Trudeau’s former principal secretary – and Eurasia Group vice chairman – Gerald Buttsthinks Trudeau is less likely to stay on after the Freeland departure as his grip on power loosens.
“Mr. Trudeau was unlikely to lead the Liberal Party into the next election and is now much less likely to do so,” he writes. “That election will probably come sooner rather than later, and the odds of it producing a Conservative majority government are materially greater than they were before the events of 16 December.”
Before Christmas, Trudeau canceled all of his year-end press interviews save for one with comedian Mark Critch. A few days later, Trudeau was mocked and harassed while on vacation skiing in British Columbia.
The Liberals are down roughly 20 points in the polls, and the Conservatives are preparing a vote of non-confidence against the government through a committee backdoor trick by way of the standing committee on public accounts, which they control. The New Democratic Party has said it will vote non-confidence but hasn’t specified whether it’ll vote with the Conservatives if they proceed with their current plan, or wait to come up with their own. Whatever happens next, the days of Trudeau’s government appear to be numbered.Canada's Prime Minister Justin Trudeau speaks at a meeting of the Calgary Chamber of Commerce in Calgary, Alberta, Canada December 21, 2016.
Trudeau on the brink? More MPs demand resignation
Bad news for embattled Canadian Prime Minister Justin Trudeau: On Saturday, 51 members of his Liberal Party’s powerful Ontario caucus reportedlyagreed that he should resign, citing their plummeting fortunes under his leadership. Over half the Liberal caucus now want him to quit, as well as numerous party advisors, strategists and commentators.
The fresh calls come after NDP leader Jagmeet Singh, whose party had been propping up Trudeau’s minority government, pledged on Friday to bring a “clear motion of non-confidence” at the earliest opportunity. With Parliament out for winter break until Jan. 27, Conservative Leader Pierre Poilievre urged Canada’s titular head of State, Governor General Mary Simon, to recall MPs early to hold such a vote. That’s a constitutionalnon-starter, but it symbolically amps up the pressure nonetheless.
What are Trudeau’s options? Unless he asks the Governor General to prorogue the House anddelay its return, the opposition would plunge the country into an election - a race his party is likely to lose. One of the justifications for prorogation would be to allow the Liberals to hold a leadership race - but that would mean Trudeau would have to resign.
All this is happening just weeks before US President Donald Trump’s return to the White House on January 20. With the threat of 25% tariffs in the air, observers say Canada’s government can ill afford to continue its current drama, and Trudeau must decide his future as soon as possible.
Canadian Prime Minister Justin Trudeau speaks after signing an infrastructure agreement in Montreal, December 16, 2016.
Trudeau’s Darkest Hour
This is Justin Trudeau’s darkest hour.
Even as he shuffles his Cabinet tomorrow, it will not shuffle his political future. This is the endgame.
Eventually, all successful politicians turn into Dorian Gray — gazing into the mirror and seeing a reflection of beauty they believe voters will find irresistible. All the while, however, somewhere under a parliamentary staircase, a portrait of their political face is being ravaged by time, scandal, and betrayal. That is the bargain leaders inevitably make as they fight to stay in power.
There was President Joe Biden earlier in the year, still seeing the reflection of a robust man ready to govern for another four years despite the fact that he couldn’t get through 40 minutes of a presidential debate. He had to be pried out of the presidential limo by the Jaws of Pelosi.
In 2015, former Conservative Prime Minister Stephen Harper thought he too saw another big election win in the mirror, but instead, insulated from reality inside his powerful prime minister’s office, he suffered a stunning defeat. The wheel of change is not partisan, but it is powerful.
Trudeau is now seeing the real portrait for the first time. After nine years in power, down 20 points in the polls, he has long refused to look, but his once trusted Finance Minister Chrystia Freeland just swiped the picture from under the stairs, waved it around publicly, and then lit it on fire.
It’s hard to imagine a more shambolic ending. Freeland was told by the PM — on a Zoom call, no less! —that she was going to be replaced as finance minister right after she presented the Fall Economic Statement (a kind of mini-budget in Canada) that would reveal the government blew past its own key deficit target by more than CA$20 billion. In other words, “Please wear this fiscal mess and let me move on to a new thing.”
How was that ever going to work? Naturally Freeland refused, but she didn’t simply quiet-quit and go gently into that good political night. Instead, just hours before she was set to deliver the FES, she chaos-quit with a controlled rage, rage-against-the-dying-of-light letter, dismissing Trudeau’s entire economic agenda as a self-serving “political gimmick.”
It blew the government apart.
It’s hard to declare winners and losers in this carnage, as everyone in the government is a casualty. The PM is now facing an open revolt by a growing number of MPs. Wayne Long, an outspoken Liberal, went on CTV’s ‘Power Play’ to say Trudeau is “delusional” and claimed that up to 40 MPS want him to resign, though that number has yet to be confirmed. Still, his sentiments were reflected in comments MPs told me, one saying bluntly, “I hope he announces he is stepping down.”
Freeland herself says she is running again, which basically kicked off the next leadership race, and she is likely the front-runner. But, as the saying goes, “The hand that wields the knife shall never wear the crown.” Freeland delivered four budgets for Trudeau, and even if she rightly fought back against the $1.6 billion goods and services tax holiday boondoggle, that hardly adds up to the over $20 billion overage on her own targets. If Canada is facing a fiscal reckoning and an angry electorate, isn’t Freeland as responsible as Trudeau? Would Canadians be able to disaggregate the two?
All this could not come at a worse time for Canada, now under direct threat from President-elect Donald Trump. He promises devastating 25% tariffs on Canada the day after he is inaugurated, and, with a hyena’s nose for weakness, he has persistently and publicly tormented Trudeau with the threat of making Canada the 51st state.
Pause on that for a second because it is unprecedented in Canadian-US history, unless you want to go back to … 1812, before Confederation. What started out as a Trump taunt is starting to look more like a Trump trial balloon. Trump’s son Eric has amplified the idea on social media, and now, on places like Fox News, taking over Canada is a topic of genuine debate.
With Trump, the first question is always: Do we take him literally, or seriously, or both?
And the lesson people have learned in the last eight years is: both.
Even as government officials have dismissed the threat as a joke, others are taking it seriously. Ontario Premier Doug Ford is showing up on American news programs defending Canada and threatening to cut off energy exports.
Trump trades in three currencies: power, fame, and loyalty. A lame duck leader of a foreign country who has only one of these three may come to Mar-a-Lago for dinner, but he might well end up on the menu.
The best hope Canada has is for the 35 state governors who depend on Canada as their top trading partner to act as de facto proxies for Canada, and push back against tariffs that will hurt their workers and economies.
Now what?
A few paths:
One, Trudeau stays and runs again after tomorrow’s Cabinet shuffle. There are no polls or signs that would suggest this is the most productive path, but, until he leaves, it has to be an option.
Two, Trudeau leaves, prorogues parliament, and the leadership race kicks off. The rules around that election will be crucial for the Liberal Party.
Can Liberals afford to take three months to elect a leader while Trump launches trade tariffs and the Conservatives consolidate their lead in the polls? It is not advisable.
On the other hand, can they afford to do a short 30-35-day process, in which case very few Canadian voters and new candidates will get involved? That might not end up injecting any fresh blood into the party at all. The Democrats tried it in the US and ended up with a frothy Kamala Harris campaign start and a miserable end.
There are few good options for the leader and the party right now, but if the government falls on a confidence motion in the new year, then the race is one with Trudeau at the helm, which is exactly what the opposition parties want most of all.
Nothing can happen until the prime minister decides what he will do.
It’s coming on Christmas, as Joni Mitchell once sang, the day the prime minister was born, but instead of seeing a star in the sky, even he knows this is his darkest political hour. The only guide he has might be those portraits of other prime ministers that hang in the halls of Parliament, each of whom has had to ask the same impossibly hard question: When is my time up?
Only a few of them got to choose their own answer.