Justin Trudeau revealed Monday he will step down as leader of Canada’s ruling Liberal Party, signaling the start of a leadership race to replace him as prime minister.

“I plan to resign as party leader and prime minister after a nationwide leadership process,” Trudeau announced in Ottawa, adding that he has requested the Liberal Party president initiate the transition.

Trudeau’s decision follows mounting pressure from within his party, as the Liberals trail the opposition Conservatives in polls and face internal conflicts over his handling of President-elect Donald Trump.

Canada’s Prime Minister Justin Trudeau speaks at the Laurier Club holiday party in Gatineau, Quebec, Canada, December 16, 2024.

The turning point came with the abrupt resignation of Deputy Prime Minister Chrystia Freeland, who also served as finance minister. Freeland cited dissatisfaction with Trudeau’s accommodating stance toward Trump’s 25% tariff plan on Canadian imports.

“For weeks, we’ve disagreed on Canada’s path forward,” Freeland wrote in her resignation letter, calling her departure the only “honest” option as the country confronts significant economic threats.

Trudeau, in office since 2015, defended his administration’s record, citing tax reductions, family benefits, and efforts to support the middle class.

The prime minister’s popularity had already declined before the tariff dispute, with inflation and political turmoil eroding his support. Recent polls show the Liberal Party’s approval has dropped to a historic low of 16%.

While elections are due by October, Trudeau’s announcement and the leadership contest could reshape the political landscape as Canadians weigh their future.