Canada Economic Policy Uncertainty Index rose to its highest level 650, way beyond what it was during the Covid-19 pandemic, according to Bloomberg
Canadian Prime Minister Justin Trudeau stepped down after heading the country for nearly a decade on Monday. The 53-year-old leader announced his resignation in a media address. He hinted that the backlash he is facing internally from his own political party, no longer makes him the best option for the upcoming election.
“This country deserves a real choice in the next election,” said Trudeau on January 6. “If I’m having to fight internal battles, I cannot be the best option in that election,” he added.
Trudeau’s resignation comes days after his deputy PM and finance minister Chrystia Freeland, made a sudden announcement to step down in December last year.
Soon after the news of the PM’s resignation began surfacing, his political rival Pierre Poilievre hinted it's time to bring down Trudeau’s unpopular policies, including the carbon tax.
Trudeau’s resignation was long predicted due to growing dissatisfaction within his own Liberal Party and increasing criticism from the opposition Conservative Party over his policies. In fact, the pressure for Trudeau to step down was built during a caucus meeting held in October, where the seated PM was presented with a letter seeking his resignation, the New York Times earlier reported.
“Fundamentally, this is something that has been simmering for some time and it’s important for people to get it out. This isn’t a code red situation. The prime minister can sure as hell handle the Truth,” Marc Miller told CBC News earlier in October. Miller is Canada’s Immigration Minister.
Trudeau has stepped down at a time when Canada isn’t just dealing with political uncertainty, but Trump’s tariff threats have mounted economic tensions for the country. Trump has threatened to impose a 25 per cent tariff on all imports from Canada.
According to Bloomberg Canada’s Economic Policy Uncertainty Index rose to its highest level 650, way beyond what it was during the Covid-19 pandemic.
“Trudeau’s resignation ushers in a new wave of uncertainty for the Canadian economy and financial markets,” Tu Nguyen told the Financial Post. Nguyen is an economist at tax consultant RSM Canada. “This latest bout of political instability could delay recovery as businesses could delay hiring and investments, instead adopting a wait-and-see approach,” Nguyen added.