Trudeau faces mounting challenges in 2025 at home and abroad

Canadian Prime Minister Justin Trudeau is currently facing significant political challenges, both within his Liberal Party and among the broader Canadian public, with additional concern over meetings between Canadian Cabinet ministers and Trump aides regarding tariffs. 

Trudeau’s approval ratings have been decreasing due to issues such as inflation, housing shortages, and high food prices. This has caused unrest amongst members of parliament of the Liberal Party, with some pushing for his resignation. Trudeau has stated he has no plans to leave his position and emphasized his commitment to Canada.

Additional concerns are on the rise with the recent election results in the United States, particularly with regard to President-elect Donald Trump’s plan to impose a 25% tariff on all Canadian imports. Trump’s reasoning for the tariff includes concern over illegal immigration and drug trafficking.

Economic experts warn that the tariff could harm both economies, potentially leading to increased consumer prices and trade disruptions – causing major worries with the existing Canadian economic landscape.

The US is Canada’s largest trading partner and largest source of foreign investment with the US accounting for 63.4% of Canada’s global trade in 2022.

With Canada facing an internal economic unrest, Canadian officials are committed to deter Trump’s plan for a 25% tariff, as Canada will be vulnerable to shifts in US economic policy. The Canadian government could work on diversifying trade relationships, therefore reducing reliance on a single partner, but as of now is placing significant efforts on addressing internal and external (Trump’s) concerns. 

In response to Trump’s concerns, the Canadian government has proposed a C$1.3 billion ($900m; £700m) enhanced border security plan. This includes a 24/7 aerial surveillance with drones, installing surveillance towers along the border, and creation of a joint strike force with US authorities to address cross-border crime.

On Friday, Canadian ministers, including Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly, met with Trump administration officials in Mar-a-Lago, Florida – location of Trump’s residency – to address concerns of what the tariff could do and negotiate a resolution. The meetings included Commerce Secretary nominee Howard Lutnick and Interior Department nominee Doug Burgum who agreed to relay the information to Trump.

According to Politico, “Both Ministers outlined the measures in Canada’s Border Plan and reiterated the shared commitment to strengthen border security as well as combat the harm caused by fentanyl to save Canadian and American lives.”

The Trudeau administration is attempting to prioritize key legislation that will address affordability, such as through a national grocery code of conduct and targeted benefits for renters and families with children.

Opposition parties are pressuring for stronger measures to address the country’s economic state. Some examples include calls for increased fiscal transparency, reductions in government spending, expanded tax relief for middle- and low-income families, and enhanced support for small businesses to stimulate growth.

Canada’s next federal election will take place in October 2025. Trudeau is hoping to secure an unprecedented fourth term, with no prime minister in the last 100 years securing four consecutive terms. This is anticipated to be a difficult task if the trajectory of economic difficulties continues to surge in 2025.