Justin Trudeau resignation live updates: Ottawa mulls early release of U.S. targets for retaliatory tariffs amid Liberal Party turmoil

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10:15 p.m.

Mark Carney says he is considering running for Liberal leadership after Trudeau resignation

– James Bradshaw

Former central banker Mark Carney said he is considering running to replace Justin Trudeau as prime minister, hours after Mr. Trudeau announced he will resign.

Mr. Carney, the 59-year-old former governor of the Bank of Canada and the Bank of England, said he is “encouraged and honoured by the support that I’ve already been hearing from Liberal MPs and Liberals across the country,” in a statement provided by a spokesperson.

“I’ll be considering this decision closely with my family over the coming few days,” Mr. Carney said.

Read more: Mark Carney says he is considering running for Liberal leadership after Trudeau resignation

10:10 p.m.

Trudeau’s resignation leaves Liberal Party little time to elect new leader

– Laura Stone and Stephanie Levitz

Prime Minister Justin Trudeau’s announcement that he’ll resign as Liberal Leader upon the selection of his replacement, along with his move to prorogue Parliament, give the party little time to hold a leadership vote before the expected spring election.

Many of the rules governing the leadership process have yet to be decided and will ultimately be up to the party’s president and national board.

While the Liberal Party’s constitution includes a process to elect a leader, it is silent on several key issues – namely whether ministers can remain in cabinet while campaigning for the position. The constitution also leaves some of the details – including the length of the campaign, spending limits and how votes are cast – to committees appointed by the board.

And the party has not yet said how it will deal with a three-month nomination period that would be incompatible with a short race, or a membership cut-off that would leave little time for candidates to recruit supporters.

Read more: Trudeau’s resignation leaves Liberal Party little time to elect new leader

10 p.m.

Host of government bills stopped in their tracks by halt of Parliament

– Marie Woolf

Twenty-six government bills – including one designed to make voting easier in a general election – have been stopped in their tracks with the halting of Parliament.

The bills had yet to pass the parliamentary stages needed to become law when Parliament prorogued. Although they could technically be revived with a motion when Parliament returns, the chances of the Liberals getting the support of a majority of MPs for this to happen are considered remote.

Read more: Host of government bills stopped in their tracks by halt of Parliament

8:35 p.m.

Ottawa mulls early release of U.S. targets for retaliatory tariffs

– Steven Chase

The federal government is weighing early release of a proposed list of American goods that would be targeted by retaliatory Canadian tariffs if Donald Trump goes ahead with a threat to impose a 25-per-cent tax on all products from Canada.

This Canadian list would be published as part of consultations on proposed retaliation but would also be intended to alert American businesses to the extra costs they would bear should the United States start a trade war with Canada, a senior government official said.

Mr. Trump, the U.S. president-elect, is set to take office Jan. 20 and has vowed to impose steep tariffs on Canadian goods if the country doesn’t take sufficient action on illegal migration and drug smuggling into American territory from Canada. Ottawa has announced $1.3-billion in new border security spending over six years but Mr. Trump has so far not signalled he’s satisfied.

The arrival of a protectionist U.S. president comes as Canada’s governing Liberal Party is in turmoil. Prime Minister Justin Trudeau announced his resignation as Liberal Leader Monday and said he would remain in power, stickhandling relations with the incoming Trump administration, until a leadership contest picks his successor.

Read more: Ottawa mulls early announcement of retaliatory tariffs on U.S. goods

8:25 p.m.

Opinion: Justin Trudeau stands in his front yard to say the inevitable

– Shannon Proudfoot

It was -22 C with the wind chill in Ottawa on Monday morning, when Prime Minister Justin Trudeau announced the decision that had become unavoidable, though its inevitability seemed to occur to him much later than others.

What was striking was the obvious emotion etched into his face, voice and body language. It was arresting precisely because it has been so long since Mr. Trudeau betrayed anything that seemed like a real reaction that responded directly to the moment.

He has spent so much time, energy and political capital over the past year or two functioning like a rictus grin on legs, insisting everything is fine. The economy, the mood of the country, his party’s standing, his own standing atop his party: It was all great or would soon right itself, regardless of the smoke everyone could see billowing out the windows.

Seeing a messy, honest reaction from him and an acknowledgment – however filtered – that things were far from fine was like a postcard sent long ago from a country you’d almost forgotten exists.

Read more: Justin Trudeau stands in his front yard to say the inevitable

8:03 p.m.

Opinion: Justin Trudeau waited until all the options were gone, painting the party and country into a corner

– Campbell Clark

A decade ago, Justin Trudeau titled his ghostwritten autobiography Common Ground. On Monday, he was walking away from scorched earth.

He will roam around the Prime Minister’s Office for two months, give or take, a lame duck fighting a U.S. tariff threat. He told reporters he is a fighter, implying he had wanted to fight on, but divisions in his party meant he is no longer the best choice. “Removing me from the equation,” he suggested, should reduce polarization in Canada’s politics.

But he left that all too late. Mr. Trudeau couldn’t see the scorched earth around him till the flames were up around his nose.

Read more: Justin Trudeau waited until all the options were gone, painting the party and country into a corner

7:18 p.m.

Opinion: Trudeau stayed too long. That’s what narcissistic procrastinators do

– Tony Keller

For the good of his country, his government and his party, he should have gone last spring. Or, better yet, the year before. Or even last fall. Last fall, his best-before date was long past, but there was still time to make arrangements to pick up some fresh cartons of Liberal milk before the end of 2024.

He at the very least could have left three weeks ago. The writing on the wall had grown taller than a Canadian flag at half-mast, yet still he decided to put off deciding, awarded himself a “period of reflection”/ski holiday, and went into radio silence.

One day, history will remember Prime Minister Justin Trudeau for many things, some of them positive. He brought in the Canada Child Benefit, which lowered child poverty. He created a national child-care program. He expanded dental care. He preserved free trade with the United States.

But today is not that day.

On Monday, Mr. Trudeau finally outlined his last chapter, written in the same style as more than a few other chapters. It is an unfortunate tale of narcissistic procrastination.

Read more: Trudeau stayed too long. That’s what narcissistic procrastinators do

6:46 p.m.

Manitoba Premier Wab Kinew ‘agnostic’ on who replaces Trudeau

– Temur Durrani

Manitoba Premier Wab Kinew says he does not have a preference for whichever leader Canadians elect as their prime minister in the wake of Justin Trudeau’s resignation.

He said he is “agnostic” about whoever is chosen as Mr. Trudeau’s replacement to become Liberal Leader. And if the country votes for federal Conservative Leader Pierre Poilievre in the next election, Mr. Kinew is willing to develop a strong relationship with him in office, too.

“We’re going to work with whoever is there,” Mr. Kinew told reporters late Monday at a press conference to discuss Mr. Trudeau’s resignation. Speaking from Grand Forks, N.D., Mr. Kinew said he does not foresee any significant effects , at least for Manitoba, related to negotiations over U.S. president-elect Donald Trump’s promise to impose a 25-per-cent tariff on Canadian imports. The Premier was in North Dakota to attend Republican Gov. Kelly Armstrong’s first state address.

“We’ve been using a ‘relate before you negotiate’ mentality with our conversations here in the U.S.,” Mr. Kinew said. He joked that if Mr. Poilievre is elected, “using that ‘relate before you negotiate’ idea, perhaps I’ll invite him out for a steak. We’ve got some good steakhouses in Winnipeg and across Manitoba.”

6:34 p.m.

Trudeau’s resignation compounds economic uncertainty ahead of possible trade war

– Mark Rendell and Nojoud Al Mallees

The federal government’s economic agenda has been mired in uncertainty and gridlocked in Parliament. Justin Trudeau’s announcement Monday that he will step down as Prime Minister now leaves Canada’s economy rudderless as a potential trade war looms over the country.

For much of the past year, the minority Liberal government has struggled to implement economic policy. Key priorities from its spring budget have been held up in the House of Commons by obstinate opposition parties. The government’s fall economic statement was delayed more than a month, then undercut when Finance Minister Chrystia Freeland resigned just hours before she was expected to deliver the document.

With Mr. Trudeau stepping aside and proroguing Parliament ahead of a likely spring or early summer election, numerous economic policies are stuck in limbo. It’s unclear whether the increase in capital gains tax for businesses and wealthy individuals will proceed as announced or whether the $250 cheques that were promised in November will ever be mailed.

Mr. Trudeau’s resignation could also affect Canada’s negotiations with U.S. president-elect Donald Trump, who has threatened 25-per-cent tariffs on Canadian imports if the country does not address border-security issues. Mr. Trudeau will remain Prime Minister until the Liberal Party picks a new leader or the government falls. But Mr. Trump may have little time for a lame-duck prime minister.

“A murky picture just got murkier,” said Douglas Porter, chief economist at the Bank of Montreal, in an interview.

Read more: Trudeau’s resignation compounds economic uncertainty ahead of possible trade war

4:59 p.m.

Newfoundland and Labrador premier praises Trudeau’s ‘steady hand’

– Lindsay Jones, Atlantic correspondent

Newfoundland and Labrador Premier Andrew Furey commended Prime Minister Justin Trudeau’s “steady hand through difficult times, like the pandemic,” and wished him well on his next chapter. “We didn’t agree on all policies,” he said in a social media post. “But I am proud of the progress we made together on things like affordable child care and rate mitigation.”

4:39 p.m.

Canadians likely to hit polls as early as spring

– Bill Curry

Prime Minister Justin Trudeau’s decision to prorogue Parliament until March 24 – allowing time for the Liberal Party to choose a new leader – sets the stage for a confidence vote shortly after, which appears likely to trigger a spring election campaign.

The return date is just a few days before a key parliamentary deadline of March 31, when the House of Commons is required to vote on what is called interim supply, which provides federal departments with the base funding they need to operate over the first three months of the fiscal year.

Votes on spending items such as supply are considered automatic confidence votes, meaning a government defeat would trigger a federal election.

“There will be confidence votes in March, passing of supply, that will allow Parliament to weigh in on confidence in a way that is entirely in keeping with all the principles of democracy and the workings of our strong institutions,” Mr. Trudeau told reporters Monday as he announced his plan to prorogue Parliament and step down as Liberal Leader and Prime Minister once the party selects a new leader.

The timing and other details of that leadership race were not immediately announced.

By leaving just a few days between the House of Common’s return and that deadline, the situation ensures there will be a confidence vote in late March, either on spending or potentially on a motion to approve the Speech from the Throne that follows a prorogation.

Read more: After Trudeau’s resignation, here’s when Canadians can expect an election

4:20 p.m.

Alberta premier says Trudeau should have called election so winner could negotiate with Trump

– Carrie Tait and Emma Graney

Alberta Premier Danielle Smith, speaking at an unrelated news conference Monday, said she wished Prime Minister Justin Trudeau had called an election so the winner would have a mandate to negotiate with president-elect Donald Trump over tariffs.

“We’re in a position now where we’ve got a lame duck leader with no immediate plans to leave, with no resolution,” she said. “I believe it’s up to myself and the other premiers to make the case to the Americans ourselves in the absence of federal leadership.”

She declined to say whom she wants to replace Mr. Trudeau as Liberal Leader, but said she favours installing the federal Finance Minister as a key negotiator until a new government is elected.

“In the interim, I would hope that we have some stability in the voices that are at the table,” she told reporters Monday. “Dominic LeBlanc has now been down to Mar-a-Lago, he has continued his relationships with the individuals he met there, he has an established relationship with all of the premiers. And so having at least that continuity in the interim, I would hope we would be able to see.”

Reflecting on Mr. Trudeau’s term as leader, Ms. Smith complimented his government’s work to ensure the Line 5 pipeline wasn’t shut down during a spat with Michigan, as well as getting both the Coastal GasLink project and the Trans Mountain pipeline expansion to the finish line.

However, she said, better leadership could have resulted in both the Energy East and Northern Gateway pipelines getting built.

“I’m looking forward to the next prime minister being somebody who will support our aspirations to double our oil and gas production, remove the carbon tax and make sure that we do not have an emissions cap on production,” she said.

Mr. Trudeau has long served as one of Ms. Smith’s political foils, and the pair have clashed on everything from carbon emissions to transgender rights. Ms. Smith has been particularly critical of the Liberals for wading into areas that she argues are under provincial jurisdiction.

4:10 p.m.

PEI Premier says Trudeau’s ‘deep love for Canada was evident’

– Lindsay Jones, Atlantic correspondent

PEI Premier Dennis King says Prime Minister Justin Trudeau has guided “the nation through some of the most challenging times in our country’s history” over the past nine years.

“While we didn’t always agree, I always appreciated his desire to try to unite the country and to do his very best to make life better for Canadians,” Mr. King said in a statement to The Globe and Mail.

“Prime Minister Trudeau’s deep love for Canada was evident, and I valued his openness to hearing the perspectives of Canada’s smallest province.”

4:02 p.m.

Ford says Trudeau must still focus ‘100 per cent’ on avoiding Trump tariff threats

– Jeff Gray

Ontario Premier Doug Ford says he still expects outgoing Prime Minister Justin Trudeau to work with him and the other premiers to avoid U.S. president-elect Donald Trump’s threatened 25-per-cent tariffs.

“We need the Prime Minister to focus 100 per cent on the U.S. tariffs,” Mr. Ford told reporters Monday at Queen’s Park. “We have 14 days left before [Mr. Trump] is inaugurated. And we need to focus and make sure these tariffs don’t move forward. And if they do move forward, we need to make sure that the federal government has a strong plan.”

But he also said the Prime Minister’s imminent departure creates uncertainty and undermines Canada’s position in talks with the incoming administration – meaning the premiers need to take more of a leadership role.

He also said his efforts to arrange a face-to-face meeting with Mr. Trump to make Ontario’s case against the tariffs had so far not been successful.

And he responded to Mr. Trump’s assertions — repeated Monday in a social media post — that Canada should become the 51st state by dismissing the idea and floating a tongue-in-cheek counterproposal.

“I know under my watch for Ontario I’d never be for that at all. We have the greatest country in the world,” Mr. Ford said.

“You know something, to the president, I’ll make him a counteroffer. How about if we buy Alaska? And we’ll throw in Minnesota and Minneapolis at the same time. So, you know, it’s just not realistic. I know he likes making these comments and he likes joking around. I take that seriously. He may be joking, but under my watch, that will never, ever happen.”

3:26 p.m.

‘It’s time:’ Residents in Trudeau’s Montreal riding react to his resignation

– The Canadian Press

Residents of Justin Trudeau’s Montreal riding are expressing mixed feelings about his decision to step down as Liberal party leader and prime minister.

Some of the people out today in the shops and streets of the Papineau riding said they were sad for Trudeau, but most said he had made the right decision.

Faisal Amin, owner of a fruit and vegetable store, says he’s a big fan of Trudeau on a personal level but thinks it is time for him to go.

Amin says Canadians are economically stressed and it will be best for the country to bring in someone with new ideas.

At a nearby dog park, Isabelle Chicoine says she had voted for Trudeau in the past, but says he has lost the public’s confidence.

Trudeau, who said today he will resign when a new Liberal party leader is chosen, has represented Papineau since 2008.

3:19 p.m.

On social media, Trump and his supporters react to Trudeau’s resignation

– Samantha Edwards

Across social media, right-wing politicians, influencers and conspiracy theorists have posted gleeful reactions to Justin Trudeau’s resignation announcement.

On Truth Social, president-elect Donald Trump reiterated his recent talking point that the U.S. should annex Canada, which he said would eliminate the need for tariffs and lower taxes. “Many people in Canada LOVE being the 51st State. The United States can no longer suffer the massive Trade Deficits and Subsidies that Canada needs to stay afloat. Justin Trudeau knew this, and resigned.”

Marjorie Taylor Greene, a Republican representative from Georgia, also implied in a Truth Social post that Mr. Trump’s comments about Canada becoming the 51st state led to the Prime Minister’s resignation. “President Trump has liberated Canada after trolling Trudeau by calling him Governor of Canada.”

“2025 is looking good,” posted Trump ally Elon Musk in a reply to an X post that said, in part, “Trump won. Trudeau resigned.”

Russell Brand, the British comedian-turned-YouTuber who espouses conspiracy theories about COVID-19, the war in Ukraine and politics to his more than 6.6-million subscribers, also posted a clip of Trudeau’s announcement on X. “IT HAPPENED! Justin Trudeau has RESIGNED!”

Alongside the memes proliferating on social media, including AI-generated images of Mr. Trudeau in clown face paint, a barrage of posts spreading conspiracy theories are also spreading on X and other platforms.

On X, InfoWars’ Alex Jones said Mr. Trudeau’s resignation was part of the larger collapse of the New World Order, a conspiracy theory that posits that a cabal of elites is conspiring to form one totalitarian government. “Justin Trudeau’s Resignation Is The First Domino To Fall In A Series Of MASSIVE Globalist Failures Worldwide.”

3:07 p.m.

Opinion: With the country under attack, Trudeau leaves it to drift – for months

– Andrew Coyne

“I will always be motivated by what is in the best interests of Canadians,” Justin Trudeau declared, in announcing his resignation. And yet the interests of Canadians seem to have finished well behind the interests of the Liberal Party in his decision.

At one point the Prime Minister mused “we are at a critical moment in the world.” He got that much right, not least where Canada is concerned. The country is under assault on several fronts: by China, by India, by Russia, but most of all, incredibly, by the United States, whose president-elect has, for no sensible reason, declared economic war on us.

And for the next several months, at least, we will just have to sit tight before anyone does anything about it – not because the Prime Minister is going, but because, as he also announced, he is staying, pending the election of a new leader.

Alone in his office – for his staff will be off filing job applications – the Prime Minister might speak, but will find no one is listening. He will pull on all the old familiar levers, and find they are not attached to anything.

There is nothing wrong in principle, of course, with a leader staying on until his successor is chosen. There is nothing wrong with proroguing Parliament, in principle. It is the time he proposes each should take, and the context, that is the issue.

The Prime Minister did not have to advise the Governor-General to prorogue Parliament until March 24 – nearly three months from now. He chose to. The pretext – that Parliament was “paralyzed” and in need of a “reset” – is bogus enough: the paralysis could have been resolved long ago had the government simply met its constitutional obligation to give the House the documents it demanded.

Read more: With the country under attack, Trudeau leaves it to drift – for months

A look at Justin Trudeau’s political career over the years

Justin Trudeau’s almost two-decade long career in Canadian politics has had its ups and downs, including moments of significant historic and cultural change.

Singh, Poilievre, Blanchet looking ahead after Trudeau’s resignation

2:58 p.m.

Trump says Trudeau resigned over trade imbalance with United States

– Steven Chase

Donald Trump claimed some credit for Justin Trudeau’s resignation announcement, speculating the Canadian Prime Minister is leaving because he as U.S. president-elect declared his intention to end trade imbalances between Canada and the United States.

The American leader also once again made a pitch for Canada to enter a political union with the United States, insisting many Canadians would support it.

Mr. Trump, who takes office Jan. 20, has repeatedly complained since the November election that this imbalance in two-way trade amounts to the U.S. subsidizing Canada. The U.S. trade deficit with Canada on an annual basis reached $100-billion as of early December, something Ottawa has said is largely caused by Canada’s significant oil and natural gas sales to the Americans.

“The United States can no longer suffer the massive Trade Deficits and Subsidies that Canada needs to stay afloat,” Mr. Trump posted on his Truth Social platform Monday.

“Justin Trudeau knew this, and resigned.”

Read more here: Trump reacts to Trudeau’s resignation

2:55 p.m.

Opinion: Justin Trudeau resigned too late

– Robyn Urback

Had Prime Minister Justin Trudeau done what his caucus, members of his party, the polls, the Canadian people, his horoscope, and that guy screaming obscenities outside the Winners at Parliament Hill all suggested six months ago and stepped down then, there might have been a way for the Liberal Party to avoid total annihilation. The by-election in the St. Paul’s riding in Toronto back in June was about as clear a sign as the electorate is capable of delivering outside of a normal election that there is no way back – not without a change at the top – but Mr. Trudeau, nevertheless, persisted.

Read more here: Opinion: Justin Trudeau resigned too late. There is no salvaging the Liberal Party now

2:38 p.m.

Nova Scotia Premier Tim Houston on Trudeau’s decision to resign

– Lindsay Jones

Nova Scotia’s newly re-elected Progressive Conservative Premier, Tim Houston, thanked Prime Minister Justin Trudeau for his service to the country and wished him the best in whatever comes next.

“I don’t need to agree with someone on every issue to respect the sacrifice it takes to run for public office and serve,” he wrote in a statement to The Globe and Mail. “Despite our differences, we were able to have frank conversations as we discussed what was best for the people of Nova Scotia.”

Mr. Houston added that pressing issues such as housing and president-elect Donald Trump’s tariff threats need continued focus and attention.

2:31 p.m.

New Brunswick Premier Susan Holt thanks Trudeau for years of public service

– Lindsay Jones

New Brunswick Premier Susan Holt thanked Prime Minister Justin Trudeau for his years of public service and dedication to Canada in a statement to The Globe.

“Today, we face new challenges and the serious threat of tariffs,” she said. “We must stand together as a country and remain focused on defending our workers and economy in the face of these threats.”

2:29 p.m.

Trudeau’s predecessor Michael Ignatieff: ‘It should not have ended this way’

– Ian Bailey

One of Justin Trudeau’s predecessors as leader of the Liberal Party says he is saddened by the way Mr. Trudeau came to make today’s announcement but remains optimistic about the future of the party.

Michael Ignatieff, the party’s leader from 2008 to 2011, offered his views in a post on X.

“It should not have ended this way, but Spring will come, the grass will grow and the Liberal party will rise again,” he wrote from Vienna, apparently referring to Mr. Trudeau’s resignation.

He did not say whether he thought the party would emerge victorious in an election expected this year.

Mr. Ignatieff, currently a professor of history at the Central European University in Vienna, declined to elaborate in an e-mail exchange with The Globe and Mail after posting his statement.

“I always vowed I wouldn’t mix it with my successor now that I’m out of the game and I should stick to my word,” he said in response to a request for further comment.

After a career in journalism and academia outside Canada, the Toronto-born Mr. Ignatieff entered politics in 2005, serving as a Toronto-area MP and leader of the Liberal Party between 2006 and 2011.

Under his leadership, the party suffered its worst election defeat in 2011, falling to third place behind the Conservatives, with a majority, and the NDP, which became the Official Opposition. Mr. Ignatieff was even defeated in his own riding and resigned as party leader.

Bob Rae, now Canada’s ambassador to the United Nations, served as interim leader before a leadership contest that Mr. Trudeau won in 2013.

After his run in Canadian politics, Mr. Ignatieff held senior academic positions in the United States before serving, between 2016 and 2021, as rector of the Central European University in Budapest.

2:26 p.m.

Trudeau ‘has been an ally for meaningful reconciliation,’ says Assembly of First Nations chief

– Willow Fiddler

The National Chief of the Assembly of First Nations hailed Mr. Trudeau for doing “more to help improve the quality of life for First Nations than any Prime Minister in the history of this country” during his tenure.

“The Prime Minister has been an ally for meaningful Reconciliation and set a new standard for future Prime Ministers to exceed,” National Chief Cindy Woodhouse Nepinak said in a statement.

Ms. Woodhouse Nepinak told The Globe on Monday that the most notable of his accomplishments is the $23-billion compensation package for First Nations children and families that was finalized last year.

“And now this year, over 300,000 First Nations people, children and their parents will be able to apply for compensation,” Ms. Woodhouse Nepinak said.

She acknowledged that the Prime Minister didn’t fulfill his promise of eliminating all drinking water advisories in First Nations, however she commended him for making significant progress.

Ms. Woodhouse Nepinak said the next government will have to work with First Nations, harnessing the momentum the AFN has built on unresolved issues including child welfare reform, policing, water legislation, and border relations with the United States.

“We don’t want to backtrack,” she said. “Otherwise we’re always going to end up in court.”

“If they’re smart and progressive and want to make our country a better place, I think we know by now that you have to work with First Nations people.

2:21 p.m.

John Rustad says Trudeau’s decision to resign offers lesson for current B.C. government

– Justine Hunter

British Columbia’s opposition leader says Mr. Trudeau’s decision to resign offers a chance for the provincial NDP government to learn from his failures.

“It’s clear that Canadians are rejecting divisive, ideological leadership and are demanding a return to common-sense government – one that puts the priorities of everyday people ahead of out-of-touch policies,” John Rustad, leader of the BC Conservatives, said in a statement.

Mr. Rustad, whose party is not formally aligned with the federal Conservatives, said B.C. Premier David Eby has relied on the federal Liberals to advance what the B.C. Conservatives describe as radical policies, including the carbon tax and harm reduction policies such as safer supply and decriminalization of illicit drugs. Mr. Rustad said B.C. should reconsider those policies as the federal Liberals seek new leadership.

2:13 p.m.

Surrey Board of Trade expresses alarm about U.S. trade relations amid prorogued Parliament

– Justine Hunter

The Surrey Board of Trade, which represents 6,000 businesses in British Columbia, has expressed alarm that Parliament will be prorogued at a critical time in trade relations with the United States.

While the country waits for the Liberal Party of Canada to choose its next leader, the U.S.-Canada Relations Committee will be terminated. In a statement Monday, Jasroop Gosal, the interim spokesman for the board of trade, said the committee’s dissolution will hinder progress on key trade and economic initiatives.

“We respect the decision made by Prime Minister Trudeau and appreciate his service to our country,” Mr. Gosal added.

2:03 p.m.

Alberta Premier Danielle Smith reacts to Trudeau’s resignation

– Emma Graney

Alberta Premier Danielle Smith said in a statement on social media that the Liberal Party of Canada was putting “selfish political interests ahead of the Canadian people by paralyzing Parliament and suspending democracy for months while they fight a divisive internal leadership contest.”

She described the move as “one of the most irresponsible and selfish acts of a government in Canadian history” and called on the other federal parties and MPs to force an election at the first available opportunity.

“At this critical time, Canadians need and deserve a prime minister and federal government with a clear mandate won from the Canadian people to negotiate with the incoming U.S. president and his administration on one of the most important international negotiations we have ever faced as a country,” she said.

1:58 p.m.

Ontario NDP Leader Marit Stiles: ‘This is a pivotal moment for our country’

– Jeff Gray

Ontario NDP Leader Marit Stiles thanked Mr. Trudeau for his service – but said his departure suggests it is time for a change at the provincial level as well.

“This is a pivotal moment for our country and our province. Change has come to Ottawa, and it’s time for change in Ontario too,” Ms. Stiles said. “As people struggle with rising costs, a housing shortage, a broken health care system and the real threat to their livelihoods from tariffs, we need leadership at all levels that will put the needs of working people first for a change.”

1:54 p.m.

Trudeau’s resignation marked as ‘a bittersweet day,’ former Liberal justice minister says

– Marie Woolf

Former Liberal justice minister David Lametti said Mr. Trudeau’s resignation marked “a bittersweet day.”

He said he was proud of what the government had accomplished but conceded that public “fatigue” had set in.

Mr. Lametti, who resigned as an MP last year, said some of those who may run to replace Mr. Trudeau may be able to “distance themselves” from his government, adding that there is “a real yearning for decisive leadership.”

He said “a general reset toward economic issues, toward bread and butter issues for families, the cost of living and inflation and the way the economy functions” needs to happen, alongside priorities such as environmental protection.

1:19 p.m.

How economists and market strategists are reacting to Trudeau’s resignation

– Darcy Keith

The Canadian dollar is up about half a U.S. cent today as Prime Minister Justin Trudeau confirmed he will step down as leader of the Liberal Party after nine years in office.

Here’s what market strategists and economists are saying so far about the economic and market impact of Mr. Trudeau’s decision today:

Thierry Wizman, financial markets economist, and Gareth Berry, foreign-exchange and rates strategist, Macquarie

“We’ve asserted .... that should Canada move toward an early election in which a Conservative-led government emerges, the CAD could appreciate, and/or USD/CAD might peak earlier than otherwise. This is based on the view that certain outcomes will likely improve for Canada under a Conservative-led government, and even in anticipation of a Conservative-led government...”

Tu Nguyen, economist with assurance, tax & consultancy firm RSM Canada

Justin Trudeau’s resignation as Liberal Party leader and prime minister ushers in a new wave of uncertainty for the Canadian economy and financial markets. Canada’s economic policy uncertainty has surged to the highest in decades, excluding in May 2020 – the early days of the COVID-19 pandemic – and way higher than that during the global financial crisis. Bloomberg’s Canada economic policy uncertainty index jumped to 650, a notable rise given that it has hovered between 200 and 350 in recent decades.

The jump in uncertainty highlights the risk to the economic outlook caused by the political sector. The Canadian dollar dropped to below $0.692 US last week, a new low, but briefly rose when Trudeau announced his departure. The ongoing situation could weaken Canada’s bargaining position at a time of tariff threats from the U.S. — the country’s biggest trading partner..."

Read more here: How economists and market strategists are reacting to Trudeau’s resignation

1:14 p.m.

Pollsters: ‘I think the outcome of the next election is set in stone’

– Marie Woolf

Pollster Quito Maggi said there is no question that the resignation of Mr. Trudeau “will increase the fortunes of the Liberal party.”

Mr. Maggi, president and CEO of Mainstreet Research, said the Prime Minister was seen as toxic by some voters who may now consider voting Liberal. But he said changing leaders is unlikely to improve their chances of winning the next election.

“I think the outcome of the next election is set in stone,” he said. “It’s more about, can the Liberals ensure that they are an official opposition party and not reduced to third or fourth place without Trudeau at the helm?”

Pollster Nik Nanos, chairman of Nanos Research, said Mr. Trudeau’s resignation will probably improve the Liberal Party’s standing in the polls, but that it will be too late for the Liberals to win the next election.

“When a party has a leadership vacancy, their support goes up,” he said.

1:10 p.m.

Former cabinet ministers Freeland, Philpott and Wilson-Raybould share their reactions

– Ian Bailey

Cabinet critics of Mr. Trudeau as prime minister were diplomatic in responding to his announcement.

Former finance minister Chrystia Freeland, who weeks ago rejected new cabinet responsibilities offered by Mr. Trudeau and outlined her concerns about government policy in a blunt letter posted on social media, issued a terse statement on X.

“I thank Justin Trudeau for his years of service to Canada and Canadians. I wish him and his family the very best,” Ms. Freeland said.

Meanwhile, former cabinet minister Jane Philpott described “an emotional day,” saying anyone who has served Canada as a head of government deserves thanks and respect.

“Thanks for giving me an opportunity to serve in the 42nd parliament. I’m proud of many things we accomplished in those days. Wish you well,” Ms. Philpott wrote.

Ms. Philpott, a physician, was first elected to the House of Commons in a Toronto-area riding in 2015, and served as health minister, minister of indigenous services and president of the treasury board between 2015 and 2019.

She resigned from cabinet in 2019 over the SNC-Lavalin affair, which saw questions raised over Mr. Trudeau and his office intervening in a criminal case against the construction company and pressing Jody Wilson-Raybould, the justice minister and attorney general, on the matter.

Within a month of her cabinet resignation, Ms. Philpott and Ms. Wilson-Raybould were expelled from the Liberal caucus.

In her own posting today, Ms. Wilson-Raybould said Mr. Trudeau did not sound like he wanted to go, and was “sadly” not too gracious.

“I thank him for his service,” Ms. Wilson-Raybould wrote. “And now…we can finally turn the page.”

She said she hoped for continued efforts to build a stronger Canada, and an elevation in Canadian discourse beyond “petty, toxic partisanship,” and developing sound policy.

1:01 p.m.

B.C. Premier David Eby: ‘I want to thank Justin Trudeau for his service’

– Justine Hunter

British Columbia Premier David Eby, who has been an increasingly vocal critic of the Trudeau government over the past year, recalled the progress his government made while the federal Liberals were in office.

“While we didn’t always agree, I want to thank Justin Trudeau for his service. We worked on many important issues including partnering to lower the cost of childcare for families,” Mr. Eby wrote in a post on X.

B.C.’s NDP government has cultivated a positive working relationship with the Trudeau government on housing investments and child care, but has clashed over immigration levels and the carbon tax. Mr. Eby has accused Mr. Trudeau of shorting British Columbia on economic investments.

12:53 p.m.

Ontario’s Bonnie Crombie, Olivia Chow share reactions to Trudeau’s announcement

– Jeff Gray and Laura Stone

Ontario’s Liberal Leader, Bonnie Crombie – whose links to Mr. Trudeau have been highlighted in PC Party attack ads – issued a statement thanking Mr. Trudeau for his service and noting that politics is hard on politicians and their families.

“He led our country through a difficult era with a global pandemic and a divisive and challenging geopolitical climate,” Ms. Crombie said. “There will be lots of discussion about what comes next for the federal Liberals. I will remain, as always, focused on delivering the change Ontario desperately needs.”

Ms. Crombie issued a second statement Monday afternoon, seizing on Mr. Ford’s pledge to put the interests of Canadian workers before “political or party ambitions” as the country faces Mr. Trump’s tariff threat and urging him to abandon the idea of an early election this year.

“Will he commit to our fixed election date and disavow any plans to seek power for power’s sake rather than focusing on the Ontario economy and what real people actually need?” Ms. Crombie said. “This is a time for stability, not political posturing. I hope Doug Ford meant what he said.”

She also repeated a call for him to recall the legislature to “strike an all-party committee to create a true Team Ontario approach.”

But she said that if he does go ahead with an early election, she will be “ready to fight and win.”

Toronto Mayor Olivia Chow also thanked the outgoing Prime Minister and said she’ll continue to focus on local matters.

“I want to thank Prime Minister Justin Trudeau for over a decade of public service to Canadians,” she said in a statement.

“As leadership changes occur in Ottawa, I will stay focused on building more homes, feeding more kids and getting Toronto moving.”

12:48 p.m.

Ontario Premier Doug Ford issues statement on Trudeau’s resignation

– Jeff Gray

Ontario Premier Doug Ford issued a statement that never mentions the now-outgoing Prime Minister beyond its subject line, focusing instead on the need for Ottawa to fend off incoming U.S. president Donald Trump’s threat to impose 25-per-cent tariffs on all imports from Canada.

Mr. Ford has been outspoken about the issue for weeks and on Monday warned the potential tariffs would devastate Canada’s economy and constitute a significant failure of the federal government.

“Now more than ever, the interests of Canadian workers and families need to come before political or party ambitions,” Mr. Ford’s statement reads. “Canada needs to demonstrate stability and strength at this critical moment, and the federal government must urgently explain to Canadians how they will avoid tariffs that could have devastating effects on our economy.”

12:46 p.m.

Read the full transcript of Trudeau’s resignation speech

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– Reuters

Prime Minister Justin Trudeau made the following public announcement earlier today to announce his resignation:

“Every morning I’ve woken up as prime minister, I’ve been inspired by the resilience, the generosity and the determination of Canadians. It is the driving force of every single day I have the privilege of serving in this office. That is why, since 2015, I’ve fought for this country, for you, to strengthen and grow the middle class, why we rallied to support each other through the pandemic, to advance reconciliation, to defend free trade on this continent, to stand strong with Ukraine and our democracy and to fight climate change and get our economy ready for the future. We are at a critical moment in the world.

“My friends, as you all know, I’m a fighter. Every bone in my body has all told me to fight because I care deeply about Canadians. I care deeply about this country, and I will always be motivated by what is in the best interest of Canadians. And the fact is, despite best efforts to work through it, Parliament has been paralyzed for months after what has been the longest session of a minority Parliament in Canadian history. That’s why this morning, I advised the Governor General that we need a new session of parliament. She has granted this request, and the House will now be prorogued until March 24.

“Over the holidays, I’ve also had a chance to reflect, and have had long talks with my family about our future. Throughout the course of my career any success I have personally achieved has been because of their support and with their encouragement. So last night over dinner I told my kids about the decision that I’m sharing with you today.

“I intend to resign as party leader, as Prime Minister, after the party selects its next leader through a robust, nationwide competitive process. Last night, I asked the president of the Liberal Party to begin that process. This country deserves a real choice in the next election, and it has become clear to me that if I’m having to fight internal battles, I cannot be the best option in that election.

“The Liberal Party of Canada is an important institution in the history of our great country and democracy. A new Prime Minister and leader of the Liberal Party will carry its values and ideals into that next election. I’m excited to see the process unfold in the months ahead. We were elected for the third time in 2021 to strengthen the economy post-pandemic and advanced Canada’s interests in a complicated world. That is exactly the job that I - and we - will continue to do for Canadians.”

12:36 p.m.

President of Liberal Party says national board to begin process of choosing Trudeau’s successor this week

– Ian Bailey

The president of the Liberal Party of Canada says its national board will meet this week to begin the process of engineering a democratic process to choose a successor for Mr. Trudeau.

Sachit Mehra said on X that he is acting in accordance with the Liberal Party’s Constitution, a copy of which he included in his post.

Mr. Mehra wrote that Liberals are grateful to Mr. Trudeau for leading the rebuilding of the party after becoming leader in 2013.

Mr. Trudeau’s Liberals won a majority government in 2015, vaulting to power from a third-place ranking in the Commons. In the 2019 and 2021 elections, the party won minority governments.

“We thank him for his service to Canada, and we look forward to his continued leadership until a new leader is chosen,” said Mr. Mehra’s statement.

12:27 p.m.

What does it mean to prorogue Parliament?

– Bianca Bharti

Prorogation is a prerogative of the Crown, an act of suspending all parliamentary activity by the governor general at the request of the prime minister. The current session comes to an end, but the government in power is not dissolved and remains in power. Any bills that haven’t received royal assent die on the Order Paper. Any voting, committee meetings, investigations and question periods are stopped.

12:20 p.m.

Bloc Québécois Leader Yves-François Blanchet reacts to Trudeau’s announcement

– Ian Bailey

Yves-François Blanchet, the leader of the Bloc Québécois, told a news conference on Parliament Hill soon after Mr. Trudeau’s announcement that a general election needs to be held directly after the Liberals pick a successor to Mr. Trudeau.

Mr. Blanchet, the first party leader to take media questions on today’s developments, said the election should come either as a result of the new Liberal leader visiting the Governor-General to request the dissolution of Parliament, or a confidence vote in the House of Commons.

“There is no viable reason for this government to stay in power any longer than the minimum necessary to designate a new leader,” Mr. Blanchet told journalists. “I don’t see any other scenarios.”

Mr. Blanchet said someone has to have a mandate to deal with U.S. president-elect Donald Trump, who is set to be inaugurated on Jan. 20.

“We need to have someone to face the arrival of Mr. Trump in the White House and this is the most important consideration regardless of partisan politics,” said Mr. Blanchet. “Parliament needs to be reconstituted.”

Mr. Blanchet praised Mr. Trudeau for deciding to step down, and wished him well.

“I hope that he will have many years of happiness and serenity.”

12:05 p.m.

Who will replace Justin Trudeau as the next Liberal leader? Here are the top contenders

– Stephanie Levitz

The race to replace Justin Trudeau after his Monday resignation announcement has begun in earnest, with a number of possible contenders weighing their chances ahead of a coming federal election later this year.

Here are a few potential candidates, in alphabetical order.

• Anita Anand
• Mark Carney
• François-Philippe Champagne
• Christy Clark
• Sean Fraser
• Chrystia Freeland
• Mélanie Joly
• Dominic LeBlanc

Read more here: Eight potential candidates who could replace Justin Trudeau as the next Liberal leader

11:55 a.m.

Conservative Leader Pierre Polievre reacts to Trudeau’s announcement

– Ian Bailey

In a statement headlined “This Changes Nothing,” federal Conservative Leader Pierre Poilievre questioned what has changed with Mr. Trudeau’s announcement.

“Every Liberal MP in power today and every potential Liberal leadership contender fighting for the top job helped Justin Trudeau break the country over the last nine years,” said the official opposition leader.

Mr. Poilievre referred to such issues as the carbon tax, questionable government spending and housing policies that have not reduced the cost of housing.

He said the key Liberal concern, at this point, is that Mr. Trudeau is no longer popular enough to win an election to keep the party in power.

11:51 a.m.

NDP Leader Jagmeet Singh reacts to Trudeau’s announcement

– Ian Bailey

NDP Leader Jagmeet Singh said Justin Trudeau and the federal Liberals have let down Canadians on issues ranging from home prices to health care.

“The problem is not just Justin Trudeau. It’s every minister that’s been calling the shots. It’s every Liberal MP that looked down their nose at Canadians who are worried about high costs or crumbling health care,” Mr. Singh said in a statement.

“The Liberals do not deserve another chance, no matter who is the leader,” said Mr. Singh.

Mr. Singh said he has been a fighter and that “a working-class movement of fighters is growing all around me,” that will take on the Conservatives.

11:45 a.m.

Reactions from Mark Carney, Christy Clark

– Ian Bailey

As Justin Trudeau announced his political exit today, some of the possible contenders to replace him praised his political service.

Mark Carney, the former governor of the Bank of Canada, thanked Mr. Trudeau for his leadership, contributions to Canada and the sacrifices his family has made for public service.

In a posting on X, Mr. Carney, who was also the governor of the Bank of England, said he wished Mr. Trudeau the best for his next chapters.

Former B.C. premier Christy Clark said she wanted to thank Mr. Trudeau for his service to Canada.

“I wish him and his family well,” Ms. Clark said in a posting on X.

“As a lifelong Liberal I look forward to joining tens of thousands of Canadians to choose our next Leader. This is the biggest opportunity in over a decade that we’ve had to grow our Party and welcome new Liberals - including Canadians concerned about the future of our country - let’s seize it!”

Ms. Clark was the premier of B.C. from 2011 until 2017 as leader of the BC Liberal party, an informal coalition of federal Conservatives and Liberals. That party, which governed B.C. from 2001 until 2017, with Gordon Campbell and Ms. Clark as leaders was renamed the BC United party in 2023.

11:36 a.m.

Trudeau: Leaving politics will ‘decrease the level of polarization’ in the House of Commons right now

– Robert Fife

Mr. Trudeau said he believes that his decision to leave politics will help the party fight the next election.

“Removing me from the equation as the leader who will fight the next election for the Liberal Party should also decrease the level of polarization that we are seeing right now in the House and in Canadian politics,” he said.

11:33 a.m.

Business leaders react to Trudeau’s announcement

– Marie Woolf

Goldy Hyder, president and CEO of the Business Council of Canada, said Mr. Trudeau’s legacy will include renegotiating the North American Free Trade Agreement with the signing of USMCA as well as bringing in the Canada Child Benefit.

But he said it is “unfortunate” that the federal government and private sector was “often at odds, especially around the need for fiscal responsibility and policies that enable long-term economic growth, including embracing our energy abundance.”

Candace Laing, President and CEO of the Canadian Chamber of Commerce, said Mr. Trudeau “read the room and made the right call by announcing his resignation.”

“Canada’s next Prime Minister must hit the ground running and be laser-focused on strengthening the Canada-U.S. trade relationship,” she added.

11:29 a.m.

Trudeau: ‘I cannot be the one to carry the Liberal standard into the next election’

– Robert Fife

Mr. Trudeau said he is a fighter and doesn’t easily back down but he realized that it was impossible to carry out without the support of the Liberal caucus.

“It has become obvious to me that with the internal battles that I cannot be the one to carry the Liberal standard into the next election.” he said.

Mr. Trudeau defended his record since 2015, saying he helped reduce poverty, advanced reconciliation with Indigenous people, fought for free trade on the North American continent and worked to combat climate change and supported Ukraine in its war with Russia.

11:20 a.m.

Trudeau will stay on as Prime Minister until new Liberal leader is selected

– Robert Fife

Justin Trudeau has made it official that he intends to resign but stay on as Prime Minister until a new Liberal leadership is selected.

“Over the holidays I have also had the chance to reflect and had long talks with my family about our future,” he said. “Last night over dinner, I told my kids the decision I am sharing with you today. I intend to resign as party leader, as Prime Minister, after the party selects its next leader in a robust, nation-wide competitive process.”

He told a news conference that he requested and Governor General Mary Simon agreed to prorogue Parliament until March 24. This will give the Liberal Party time to hold a shortened leadership contest.

Jan. 6, 11:08 a.m.

Justin Trudeau to resign as Liberal Leader

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– Marieke Walsh, Robert Fife and Stephanie Levitz

Prime Minister Justin Trudeau, facing an increasing loss of support within his party and low popularity in polls, says he will resign after just over nine years in office and only months before a federal election campaign.

At a Monday press conference outside his Rideau Cottage residence, Mr. Trudeau said he will stay on as Prime Minister while the Liberal Party elects a new leader. He also asked Governor-General Mary Simon to prorogue Parliament until March 24, which she granted.

Read more here: Prime Minister Justin Trudeau resigns as Liberal Leader

Watch live: Justin Trudeau holds press conference outside Rideau Cottage

Jan. 6, 10:45 a.m.

Justin Trudeau announces press conference to discuss future

– Marieke Walsh, Robert Fife and Stephanie Levitz

Prime Minister Justin Trudeau is scheduled to hold a press conference at 10:45 a.m. today to discuss his future as Liberal Leader.

The Globe and Mail reported on Sunday that according to three sources, Mr. Trudeau was expected to resign as early as Monday. The timing was set in motion in part because the Prime Minister wanted to make his announcement before he meets with his national caucus on Wednesday.

Jan. 3

Opinion: The coming chaos in federal politics and how we got here

– Andrew Coyne

We are about to receive one hell of a civics lesson. It will be a particularly painful one for the Liberals, who are staring at political oblivion and have many agonizing weeks and months to go before then. But the country will suffer along with them.

We have been scraping by for decades, narrowly avoiding one disaster after another, with a political and constitutional order that is cracked in several places. A number of those cracks are about to open at the same time.

Let us consider how we got here. The Liberals endured the worst defeat in their history in the 2011 election – worse even than the one in 2008. It was clear that this was no ordinary election loss – that deep historic trends were at work that put the party’s very existence in peril.

Dec. 21, 2024

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Inside the Freeland fallout: How Trudeau’s leadership came under fire

– Stephanie Levitz, Robert Fife and Marieke Walsh

At about 8:45 on Monday morning, Prime Minister Justin Trudeau arrived on Parliament Hill, his motorcade gliding to a stop in front of the ornate set of wooden doors used almost exclusively by him.

But instead of immediately getting out, Mr. Trudeau stayed in the back seat of the black SUV, on the phone.

On the other end of the line: his deputy prime minister and finance minister, Chrystia Freeland.

That afternoon, she was set to deliver the fall economic statement. But she was calling Mr. Trudeau to quit.

Dec. 16, 2024

The Zoom call that sent shock waves through Ottawa

– Stephanie Levitz

On Dec. 13, Chrystia Freeland was in Toronto, soon to headline a news conference to set up Monday’s update on the nation’s books and the path forward. Meanwhile in Vancouver, Prime Minister Justin Trudeau was preparing to give a speech to name a new warship.

But before either walked out the door for what on paper looked like a garden variety political day, they met over Zoom. What happened next would light the fuse of the bomb dropped on Ottawa by Ms. Freeland on Monday morning: her resignation from cabinet as deputy prime minister and finance minister.

Mr. Trudeau, in a call that a source told The Globe and Mail lasted an hour, told her that after she delivered the fall economic statement, he wanted to take the finance portfolio away from her in exchange for a job overseeing U.S. relations. It would come with no staff, no money and no authority.

No thanks, Ms. Freeland responded.