Canada’s business community is hoping that Prime Minister Justin Trudeau’s resignation announcement may clear the air of economic uncertainty but is also worried about how prorogation may affect trade negotiations with the U.S.
Prime Minister Justin Trudeau announced Monday that he would be stepping down as leader of the Liberals and prime minister following a leadership contest to find a replacement.
This comes at a time when President-elect Donald Trump has promised to impose a blanket 25% trade tariff on Canadian imports – a move which could send Canada hurdling into a recession.
The Greater Vancouver Board of Trade provided True North with a copy of the statement sent out to members saying that Canada’s political uncertainty comes at a “perilous time.”
“When Parliament returns in March, the opposition parties have committed to triggering an election. The uncertainty in Ottawa comes at a perilous time. With the challenges posed by a Trump Presidency, along with significant domestic and global pressures, Canada needs focused leadership to steer our national economy back on course,” wrote the Greater Vancouver Board of Trade.
Former Conservative minister of industry and current chancellor of the University of Northern British Columbia James Moore also criticized the timing of Trudeau’s departure, pointing to mounting international pressures, particularly from the United States.
“Mr. Trump will impose crippling tariffs & begin mass deportations of illegal immigrants in the US. These actions alone require a functioning government to protect Canada. Instead, we have an absentee PM, a shuttered parliament & a dysfunctional cabinet in competition with itself,” Moore stated.
Mr. Trump will impose crippling tariffs & begin mass deportations of illegal immigrants in the US. These actions alone require a functioning government to protect Canada. Instead, we have an absentee PM, a shuttered parliament & a dysfunctional cabinet in competition with itself.
— James Moore (@honjamesmoore) January 6, 2025
The Canadian Chamber of Commerce issued a statement following Trudeau’s surprise announcement, saying that the decision will help pave a new direction for Canada’s economy.
“His resignation marks a turning point as Canada tackles unprecedented domestic and international challenges. Canada can’t afford inaction with so much at stake. Unity is key: political leaders, businesses, and communities must come together around our common opportunities,” wrote the Chamber’s CEO Candace Laing.
Laing emphasized the need for the next Prime Minister to prioritize the Canada-U.S. trade relationship, fiscal discipline, and policies that boost productivity.
“The time for wasteful spending and over-taxation is done — we need to aim higher and deliver the better life all Canadians deserve,” she added.
Dan Kelly, CEO of the Canadian Federation of Independent Business, echoed concerns about Canada’s lack of preparedness for economic turbulence.
“I remain deeply concerned about the significant political and economic challenges facing the country in the months ahead, particularly given the threat of US tariffs and the lack of direction on major domestic issues,” Kelly said in a statement.
Business Council of Canada CEO Goldy Hyder pointed to some of Trudeau’s achievements, such as renegotiating NAFTA, but highlighted several missed opportunities.
“It is unfortunate, however, that the relationship between the federal government and the private sector was often at odds, especially around the need for fiscal responsibility and policies that enable long-term economic growth, including embracing our energy abundance,” said Hyder.
