| North America will have another new leader this year, after Canadian Prime Minister Justin Trudeau resigned as his party's leader this week, kicking off a race to succeed him. Brian Platt has the view from Ottawa. Plus: A fresh start for a Russian tech billionaire and eight nonalcoholic spirits to try. If this email was forwarded to you, click here to sign up. For more than a year, Justin Trudeau fought off widespread calls for his resignation as Canada's prime minister. He knew, of course, that his polling numbers were terrible and his Liberal Party was falling far behind the rival Conservatives. But it wasn't just him—there was a global backlash against incumbent governments in 2024. His inner circle believed they could turn things around in 2025 as interest rates came down and inflation receded in voters' memory. Trudeau had been in power for nine years, and, despite an accumulation of political baggage, he was determined to fight the next election and overcome the odds. Then it all fell apart.  Trudeau is currently the longest-serving leader of any Group of Seven country. Photographer: Kamara Morozuk/Bloomberg The death blow came from then Finance Minister Chrystia Freeland, who resigned on Dec. 16—the same day she was meant to deliver a budget update to Parliament. Her resignation letter criticized Trudeau for being too focused on "costly political gimmicks," such as temporary sales tax relief, instead of preparing for a tariff battle with US President-elect Donald Trump. Freeland was the most powerful minister in Trudeau's cabinet, and her resignation decisively turned the Liberal caucus against Trudeau. The prime minister spent the Christmas holiday skiing in the Canadian Rockies and reflecting on his future, and he finally bent to the inevitable. "Every instinct I have has always driven me to fight," Trudeau said in his resignation speech on Jan. 6. Canadians deserve a real choice in the next election, he said, "and it's become clear to me that if I'm having to fight internal battles, I cannot be the best option." The coming weeks and months in Canadian politics will be intense and unpredictable. Trudeau's delayed resignation has put his government in a bad spot. The opposition parties, who control a majority of seats in Parliament, have pledged to trigger an election at the next opportunity, which will probably come in late March. That gives the Liberals barely two months to pick a leader—a very rushed process, as leadership races in Canada typically take half a year or longer. Trudeau will stay in office until the race concludes on March 9. In the meantime Canada has to fend off Trump's threat of 25% tariffs, which would devastate the country's economy. Trump has taken advantage of Trudeau's political weakness, gleefully mocking him as the "governor" of the 51st state of America. Business leaders are deeply concerned about the political instability at the top of Canada's government at a time decisive action is needed toward a foreign threat. Higher tariffs leading to higher prices could further sink Trudeau's Liberals. Governing parties in most of the major countries that held elections in 2024, including France, India, Japan and the UK, were punished by voters over inflation and cost of living concerns. Some big names are expected to run for Trudeau's place atop the Liberals, including Freeland and Mark Carney, the former governor of the Bank of Canada and the Bank of England. (Carney is also the chair of Bloomberg Inc.) But with a trade war looming and the Liberal Party still far behind in the polls, Trudeau may be handing his successor a poisoned chalice. | 
.png)
No comments:
Post a Comment