To keep it short, a lot.

Following the news these days may feel like waking up to a breaking news alert every morning regarding the Canadian government and its policies. Only two months into 2025, Canada has already faced significant shifts in its political landscape, with the resignation of Prime Minister Justin Trudeau, the re-election of Donald Trump as president of the United States, and an upcoming federal election that is shaping up to be anything but predictable.

Here’s an overview of these developments, along with clarifications on common misconceptions.

Justin Trudeau’s Resignation

On January 6, 2025, Trudeau shocked the nation by announcing his resignation as both Prime Minister and leader of the Liberal Party. His decision came after months of declining public approval, rising internal dissent within the Liberal Party, and increasing pressure due to economic and political challenges.

One of the most pivotal moments leading to Trudeau’s resignation was the departure of Deputy Prime Minister and Finance Minister Chrystia Freeland. Widely regarded as Trudeau’s closest ally and a likely successor, Freeland’s resignation sent shockwaves through the party and the country. Reports suggest that her departure stemmed from growing disagreements over economic policy, particularly regarding inflation management and trade relations with the United States. Her exit further weakened confidence in Trudeau’s leadership, prompting multiple Liberal MPs and opposition members to call for his resignation.

Speculation grew that a non-confidence vote would be triggered in Parliament, forcing an early federal election. Instead, Trudeau chose to step down voluntarily, allowing the Liberal Party to conduct a leadership race and select a new leader before facing a national vote.

Common Misconception: Canada Does Not Have a Prime Minister Right Now

Despite stepping down as party leader, Trudeau remains Canada’s Prime Minister until his successor is chosen. Following his resignation announcement, Parliament is prorogued until March 24, meaning legislative activity is temporarily suspended. However, the government is still functioning, and Trudeau continues to fulfill his duties as Prime Minister until the Liberal Party selects a new leader, who will then assume the role of head of government. Once Parliament resumes, a no-confidence vote is expected, which could officially trigger the federal election campaign.

Donald Trump’s Re-Election and Its Impact on Canada

In an election that once again divided the United States, Trump secured re-election as President. His return to power has significant implications for Canada, as he has already signaled a more aggressive approach to trade policies and has made controversial statements regarding Canada’s sovereignty. Among his administration’s early moves was the proposal of new 25% tariffs on key Canadian exports, igniting tensions between the two nations.

Trump has specifically targeted Canadian industries such as aluminum, steel, and automobiles. If implemented, these tariffs would have a domino effect on both Canadian manufacturers and consumers. The auto industry, which relies heavily on cross-border supply chains, would be among the hardest hit, with production costs rising and vehicle prices increasing for consumers. Additionally, manufacturers of electronic goods, construction materials, and agricultural products could face significant economic disruptions. While these tariffs would significantly hurt Canada, they would also have negative consequences for American industries that depend on Canadian materials, potentially leading to price increases for American consumers as well.

Common Misconception: If Canadians Boycott American Products, We’ll Be Fine

While supporting local businesses and Canadian-made products is beneficial, it is not a complete solution to the economic challenges posed by U.S. tariffs. Canada’s economy is deeply tied to exports, and many businesses depend on American raw materials and technology. A complete shift to economic independence would not be feasible in the long term, as supply chains between the two countries are highly integrated. Tariffs could also result in job losses in sectors that rely on cross-border trade, making the economic impact widespread across the country.

Liberal Leadership Race and Implications for the Federal Election

With Trudeau stepping down, the Liberal Party has launched a leadership race to determine his successor. 

Several candidates have emerged, including the former Governor of the Bank of Canada, Mark Carney; former Deputy Prime Minister and Finance Minister, Chrystia Freeland; current Liberal MP, Karina Gould; and former Liberal MP and businessman, Frank Baylis.

The Liberal leadership election is scheduled for March 9, 2025, and the winner will immediately become Prime Minister.

Common Misconception: The Conservatives Are Guaranteed to Win the Federal Election

While the Conservative Party, led by Pierre Poilievre, was once projected to have an easy path to victory in the next election due to their lead in national polls and widespread frustrations among Canadians, recent developments have shifted public opinion. Following Trump’s re-election and his aggressive stance towards Canada, there has been a resurgence in support for the Liberal Party. 

The Poilievre-led Conservatives’ strong focus on economic discourse and aggressive opposition tactics have resonated with their base but alienated centrist and undecided voters. Many Canadians are also wary of his close ideological alignment with Trump, fearing that a Conservative government could lead to a shift in Canadian politics toward more divisive and populist policies.

Meanwhile, the Liberals have rebranded their message, emphasizing stability, economic resilience, and a strong opposition to Trump’s policies. Voters who were previously disillusioned with Trudeau’s leadership are now reconsidering the party under new leadership, particularly as concerns over trade, affordability, and foreign relations take center stage in the election campaign.

Recent polling suggests that the Liberals have significantly narrowed the gap to the Conservatives in voter preference. The New Democratic Party (NDP), led by Jagmeet Singh, has seen a dip in polls, likely due to strategic voting, as left-leaning Canadians increasingly shift their support to the Liberals to block a Conservative government. This has left the NDP struggling to retain voters who see the Liberals as a more viable alternative in a high-stakes election.

With political dynamics shifting rapidly, the upcoming federal election continues to become more unpredictable. 

What’s Next?

Once the Liberal Party selects a new leader, they will likely face a no-confidence vote in Parliament, triggering a federal election. The campaign will focus on key issues such as Canada-U.S. trade policies, economic recovery, housing affordability, and climate action.

As these events continue to unfold, staying informed and engaged will be crucial for understanding how they affect Canadians, including students at the University of Saskatchewan. The political landscape is evolving rapidly, and the decisions made in the coming months will shape Canada’s future for years to come.