Canadian Prime Minister Justin Trudeau announced his resignation

Canada’s Justin Trudeau said Monday he will step down as leader of the ruling Liberal Party but will remain as prime minister until a new leader is elected ahead of a general election in late October.

“I intend to step down as party leader as prime minister after the party elects its next leader through a vigorous nationwide, competitive process,” he said during a press conference on Monday. “Last night I asked the president of the Liberal Party to start this process. This country deserves a real choice at the next election, and it is clear to me that if I have to fight internal battles, I cannot be the leader. This is the best choice in this election.”

He added that the Canadian Parliament will be suspended until March 24, when the vote of confidence will be held.

“Parliament has been completely taken over by obstruction and fraud and a complete lack of productivity over the past few months. We are now the longest-serving minority government in history and it’s time for a rebuild,” Trudeau said.

Local media said he was expected to announce his resignation before the main national caucus meeting on Wednesday. Canadian stocks rose slightly after the news. The S&P TSX rose 0.1%, while the Canadian dollar rose 0.5% against its US counterpart to 1.4373. The iShares MSCI Canada The ETF ( EWC ) rose 0.5%.

Canada’s latest political crisis was fueled by the sudden departure of former Trudeau ally and deputy finance minister and finance minister Chrystia Freeland, who resigned citing differences over Ottawa’s response to future U.S. trade nationalism over the next four years. Donald Trump‘s incoming administration.

Dominique LeBlanc has since been appointed to replace him and head the portfolio of finance ministers.

Trudeau, 53, who took office in 2015 and has been re-elected twice, has seen his voter popularity drop to just 19% since Freeland’s departure, according to pollster Abacus Data. Found on December 17. The Angus Reid Institute declared December 30 a “bruising year for the federal Liberals” and only 16% of popular support for the party — its weakest level since the institute began tracking in 2014.

The opposition Conservative Party now holds a more than 20% lead in the polls ahead of the general election, and its fiery leader Pierre Poilievre has won praise from a Trump ally. Elon Muskwho recently praised his “big interview”.

Despite growing calls for his resignation, Trudeau has refused to do so since mid-December, and the Liberal Party has no mechanism to remove the leader without consent.

On December 20, Jagmeet Singh, leader of the allied leftist New Democratic Party, announced it in a new blow to Trudeau. in an open letter Intending to introduce a bid to topple the Trudeau government, paving the way for an election.

“Justin Trudeau has failed at the most important task of a prime minister: working for the people, not the powerful,” he said, according to CNBC. “Justin Trudeau’s Liberals made great promises. Yet they have let the people down time and time again.”

Trudeau recently presided over a Canadian economy with inflation just below its 2% target in Novemberbut beaten by household debt, increase in unemploymentthe the worst productivity indicator A panoptic exposure to the Organization for Economic Co-operation and Development and the United States in 2023 – where Trump, disparaging “governor” Trudeau, has already teased the possibility of both. 25% rates and attachment.

Differences over Canada’s response to Trump’s “aggressive economic nationalism” finally split Freeland from Trudeau last month.

“We must take this threat very seriously,” he warned in his resignation letterIt calls for a push against “America First” economic nationalism, emphasizing the “serious challenges the United States presents” and a determined effort to fight for capital and investment and the jobs they bring.

— CNBC’s Fred Imbert contributed to this report.