The race to replace Canada’s Prime Minister Justin Trudeau is officially underway. Leading contenders for the leadership of Trudeau’s governing Liberal Party—such as the globally recognized Chrystia Freeland and Mark Carney—are making their case to steer Canada through pressing domestic and international challenges, including escalating trade tensions with the United States.

After facing a series of political crises last year, Trudeau announced in January that he would step down as Liberal leader once a successor is chosen—eventually relinquishing his role as Prime Minister as well.

This Sunday, Liberal Party members will cast their votes to elect a new leader, a crucial decision with Canada’s general elections approaching later this year. Here’s what you need to know:

Why Is Trudeau Resigning?

Trudeau has led the Liberal Party for over a decade, first bringing it to power in 2015 with promises of a brighter future for Canada. He was re-elected twice, most recently in 2021, though he lost his governing majority.

During his tenure, Trudeau championed progressive policies, including climate action and reconciliation with Indigenous communities. However, recent years have been overshadowed by economic concerns. His government also suffered a major blow last year when then-Deputy Prime Minister and Finance Minister Chrystia Freeland unexpectedly resigned just hours before delivering a key fiscal update.

Trudeau’s departure comes as the Liberal Party faces a tough re-election battle, with general elections expected by October. The party has struggled in recent polls against the Conservatives, led by right-wing politician Pierre Poilievre. However, in recent weeks, the opposition’s lead has shrunk as Trudeau’s potential successors, including Carney, take strong public positions on Canada’s ongoing trade dispute with the U.S.

Although Trudeau will step down as party leader after Sunday’s vote, he has not specified when he will officially leave office as Prime Minister. His successor will have the authority to call for federal elections in the coming days, weeks, or months.

What Role Does the U.S. Play?

Canada’s relationship with the U.S. has deteriorated under the Trump administration. Over the past three months, U.S. President Donald Trump has blamed Canada for illegal immigration, threatened to make it the 51st U.S. state, and imposed heavy tariffs on Canadian imports, citing the need to curb fentanyl smuggling into the U.S.

These trade tariffs could have varying effects on American consumers, particularly regarding Canadian oil and gasoline imports. The escalating tensions have fueled nationalist sentiments in Canada, with some sports fans even booing the U.S. national anthem at NHL and NBA games.

These developments may have also helped the Liberal Party regain some ground, as Conservative leader Poilievre—often compared to Trump—has distanced himself from the U.S. president, emphasizing in a recent press conference that he is “not MAGA.”

According to Allan Tupper, a political science professor at the University of British Columbia, “Canadian politics is being shaken by Trump’s aggressive stance on Canada’s future and the surprising tariffs, despite the deep economic ties between the two nations.”

Whoever replaces Trudeau will need to be a strong negotiator, particularly regarding tariffs. “Canada may become more assertive, more nationalistic, and more determined to shape its own destiny,” Tupper added.

Who Are the Leading Candidates?

Mark Carney: A former governor of both the Bank of Canada and the Bank of England, Carney is considered a top contender. He has positioned himself as a leader who can ensure economic stability, prioritizing clean energy, climate policy, and economic growth.

Carney has highlighted his experience in managing Canada’s finances during the 2008 financial crisis and guiding Britain’s economy through Brexit. He has gained significant support from Liberal lawmakers and members of Trudeau’s cabinet.

Experts believe his financial expertise could be vital given the ongoing trade tensions with the U.S. “He’s highly skilled in economics, making him a strong candidate amid the current economic challenges,” said Charles-Etienne Beaudy, a political science professor at the University of Ottawa.

Carney has also taken a firm stance against the Trump administration’s trade policies, advocating for retaliatory tariffs on U.S. goods to minimize the impact on Canada while imposing costs on the U.S. economy.

Chrystia Freeland: A former journalist and one of Trudeau’s most prominent cabinet members, Freeland was born to a Ukrainian mother in Alberta and studied at Harvard before embarking on a career in journalism covering Russia and Ukraine. She entered politics in 2013 and rose to key leadership roles under Trudeau.

Freeland has experience negotiating with Trump on trade, having played a key role in renegotiating the USMCA trade agreement in 2018. Trump has since criticized her, calling her “totally toxic and not at all conducive to making deals.”

Her unexpected resignation in December triggered a wave of instability in Trudeau’s government. On the campaign trail, Freeland has hinted at a tougher stance on immigration and proposed strong retaliatory measures against U.S. trade policies.

Karina Gould: As the youngest woman to serve as a Canadian minister, Gould is positioning herself as part of a generational shift in politics. In her campaign launch, she emphasized the need for the Liberal Party to embrace change.

She has proposed raising corporate taxes on companies earning over $500 million annually to encourage reinvestment into business and productivity. If elected, her first priority would be resolving Canada’s trade dispute with the U.S. before calling for general elections. Like other candidates, she has advocated for a firm approach toward Trump.

Frank Baylis: A Montreal-based businessman and former lawmaker from 2015 to 2019, Baylis has proposed building two pipelines to transport natural gas to European and Asian markets to reduce Canada’s economic reliance on the U.S.

Baylis has criticized Trudeau’s handling of Trump and argued that Canada must diversify its trading partners to avoid overdependence on the U.S. He has taken a strong stance against Trump’s policies, stating, “Anyone who has successfully dealt with a bully knows you don’t give an inch.”

As the vote approaches, the outcome of the Liberal leadership race will shape not only the party’s future but also Canada’s stance in an increasingly tense political and economic landscape.