section_path: Background/Government transition
section_name: Government transition
paragraph_text: Government transition
  
  Despite low government approval ratings and a large polling lead for the opposition Conservatives – linked to an ongoing cost of living crisis – Trudeau had insisted he would lead the Liberals into the next general election, and attempt to win a fourth consecutive term. Despite his commitment to seek re-election, pressure on Trudeau to step aside had been mounting from the Liberal caucus after by-election losses in safe Liberal seats.
  
  On December 16, 2024, the government was plunged into a political crisis when finance minister Chrystia Freeland abruptly resigned, only hours before she was set to present the government's fall economic statement. The resignation was seen as a clear rebuke of the prime minister from one of his most loyal allies, and sent shockwaves throughout Canadian politics. Trudeau, who had already faced down a caucus revolt in October, was faced with renewed questions about his leadership. By December 22, 21 Liberal MPs had publicly called for Trudeau to step down. On January 6, 2025, Trudeau announced his intention to resign as prime minister after the party elected his successor. The ensuing leadership election was won by Mark Carney, former governor of the Bank of Canada and governor of the Bank of England. Carney was sworn in as prime minister on March 14, becoming the first prime minister to have never held elected public office prior to their appointment.
  
  The crisis occurred against the backdrop of Donald Trump 's victory in the 2024 United States presidential election and his threats to impose sweeping tariffs on Canada. Disagreements over how to handle this threat were seen as being a contributor to the Trudeau ministry's collapse. However, the Trump administration 's conduct soon sparked a political revival for the Liberals, with the ensuing trade war, along with the President's threats to annex Canada, greatly reducing the Liberals' polling gap with the Conservatives. By the time Carney was sworn in as prime minister, the polling gap had been eliminated altogether and the Liberals were in the lead, putting them in striking distance of a majority government. The scale of their political turnaround was described by analysts as having "little precedent" in Canadian history.