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Canada suddenly has no leader, and no plan, for a Trump trade fight

Mint Mumbai

|

January 10, 2025

Canada is the U.S.'s second-largest trading partner after Mexico, according to U.S. Census Bureau data

- Vipal Monga

Canada suddenly has no leader, and no plan, for a Trump trade fight

After President-elect Donald Trump's election victory, Canadian officials began racing to rebuild "Team Canada"—the bipartisan group of federal, provincial, and business officials led by Prime Minister Justin Trudeau who pushed back against Trump's tariffs in 2018.

Today, Team Canada has a problem: It is leaderless.

Trudeau's resignation, and decision to forestall elections for at least a few months until his party picks a new leader, leaves Canada with no recognizable plan to counter Trump's threats of 25% tariffs on all goods or his floating an American takeover of its northern neighbor by "economic force."

The united front that Canada presented Trump in his first term is fractured and distracted.

"We don't know who speaks for Canada today," said Goldy Hyder, president of the Business Council of Canada, a group that represents the chief executives of large Canadian companies.

Even before Trudeau's announcement Monday, the longtime prime minister faced criticism that he wasn't adequately prepared for a trade fight with Trump. His closest political ally, Chrystia Freeland, resigned as deputy prime minister and finance chief over those concerns.

But even a weakened and unpopular Trudeau at least presented a battle-tested foil for Trump. Now, political analysts said Trump has an opening to go even harder on Canada on trade and other matters, such as military spending.

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