Canadian PM Justin Trudeau Resigns Two Weeks Before Trump Takes Office

With the inauguration of 47^th U.S. President Donald Trump to his second, non-consecutive term just two weeks away – and his promised imposition of 25-percent tariffs on Canadian imports looming closer – Canadian Prime Minister Justin Trudeau announced his resignation as the head of Canada’s government and the leader of the Liberal Party on Monday.

The move will make it more difficult to deal with the fallout from Trump’s “Day One” tariffs, some Canadian automotive industry groups cited by Automotive News argue.

In order to keep his role as chief negotiator in the face of likely being removed from office by a likely impending no-confidence vote, Justin Trudeau has opted to prorogue the Canadian parliament until March 24^th, 2025. Prorogation is suspension of all legislative activity without actually dissolving or ending the current session. An election cannot be held until the prorogation ends.

Without the prorogation, the upcoming no-confidence vote in late January would likely see Trudeau ousted at exactly the moment Trump is taking office and, presumably, gearing up to impose tariffs on Canadian imports.

The Automotive Parts Manufacturers’ Association head, Flavio Volpe, described Trudeau’s action as “the best of the bad options.” The association executive pointed out that “an interim prime minister would be nonsensical, as well as going into an election right now,” with the prorogation ensuring Trudeau remains in office until March and making it possible for him to “negotiate with Trump in the interim.”

The rest of the Canadian government outside Parliament will remain functional, giving Justin Trudeau most of the working executive apparatus he needs to negotiate with President Trump. While Volpe appears to believe this is the best position out of the currently available options to handle the negotiations, other significant Canadian auto industry figures expressed less confidence.

Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association – of which GM is a member along with the other Big Three automakers – argued that “prorogation will further complicate our ability to navigate the U.S. tariff threat.” David Adams, chief executive of Global Automakers of Canada, which represents Japanese and other international car companies, said that “our tools to respond to a tariff threat or anything else would seem to be more limited under these circumstances.”

Soon-to-be-President Donald Trump has sent waves through the auto industry with his announced tariff plans and his planned rollback of Biden administration fuel economy requirements and elimination of EV tax credits. General Motors says the incoming administration’s plans don’t affect its electric vehicle strategy, which will move ahead regardless. GM also says it will contribute a million dollars and an unspecified number of vehicles to the Trump inauguration.

Justin Trudeau, meanwhile, claims that “I am a fighter, and I am not someone who backs away from a fight.” In apparent reference to the upcoming tariff negotiations, he also asserted that he will “stand up for their well-being and make sure […] that Canadians are protected and strong.”