Canadian media was the first to break the news that Canadian Prime Minister Justin Trudeau is expected to announce his resignation as the leader of the ruling Liberal Party as early as Jan 6. Whether he will also resign from the position of prime minister is still uncertain, but Canada's domestic politics is changing.

There are three main troubles facing Trudeau. First, his governance has been challenged, with the Canadian economy gradually weakening, housing crises and rising prices eroding his political base. Opponents' voices started to rise in the first half of 2023, and Trudeau's support has been declining, reaching around 20 percent recently.

Second, the threat of US' trade war. After winning the election, US President-elect Donald Trump made several threats against Canada, including imposing a 25 percent tariff on all Canadian products. Despite Trudeau's urgent meetings with Trump at Mar-a-Lago, he returned empty-handed. Trump's mockery of Canada as the "51st state of the US" further undermined Trudeau's credibility.

In fact, there has been significant internal division within the Liberal Party on how to address the threat of US tariffs, which has been fatal for the already precarious Trudeau government. Fundamentally, Trudeau's approach has been on a policy of actively spending, while Deputy Prime Minister and Finance Minister Chrystia Freeland and others have focused on controlling government spending. Freeland's sudden resignation on Dec 16 dealt a fatal blow to Trudeau. Shortly before Freeland's announcement, the minister of housing also resigned.

Third, the upcoming election. The latest polls show the Conservative Party leading the Liberal Party by a big margin. Conservative leader Pierre Poilievre has widened his lead over Trudeau, presenting himself as a populist conservative who promises change, focusing on housing and price issues, and striving to create a "Canadian Trump" image. In this context, many Liberals no longer support Trudeau.

Therefore, Freeland's resignation can be seen as a strategic move, both politically distancing herself from Trudeau, while also offering potential supporters an appealing alternative — uniting Canadians to face challenges from the economy, livelihood, and even the United States.

The author is a research fellow on American studies at the Chinese Academy of Social Sciences.

The views don't necessarily reflect those of China Daily.

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