Canada PM Trudeau reflecting on criticism amid leadership crisis: ally

Canadian Prime Minister Justin Trudeau is reflecting on complaints about his leadership by legislators from the ruling Liberal Party who are unhappy that Finance Minister Chrystia Freeland quit, a close ally said on Tuesday.

Another Liberal parliamentarian said separately that Trudeau was "delusional" if he thought he could fight the next election, which is due by Oct. 20 next year. Polls show the Liberals would be crushed by the official opposition Conservatives.

Freeland resigned on Monday amid a policy clash and released a letter savaging Trudeau's leadership, prompting one of the worst crises since he took office in 2015.

Trudeau later held a special meeting with his parliamentary caucus, which is already unhappy over the party's poor performance in the polls.

"He did say to caucus that he had heard very clearly, and listened carefully, to their concerns and he would reflect on it," new Finance Minister Dominic LeBlanc told the Canadian Broadcasting Corporation.

LeBlanc, one of Trudeau's closest friends, was named finance minister later on Monday.

LeBlanc is also temporarily keeping his previous role as public safety minister and a number of other ministers have more than one job as a result of colleagues' resignations. CBC said Trudeau would reshuffle his cabinet soon, possibly on Wednesday.

"A number of my caucus colleagues have said publicly that the prime minister is reflecting on Minister Freeland's decision and the feedback he heard yesterday. I respect that he is taking time to reflect," Natural Resources Minister Jonathan Wilkinson told Reuters.

Trudeau alluded to the turmoil on Tuesday night, telling a Liberal Party event to mark the end of the parliamentary session that the last couple of days had not been easy.

"We really are a big family. Now like most families, sometimes we have fights around the holidays, but of course, like most families, we find our way through it," he said to some cheers from the audience.

The Globe and Mail newspaper, citing two Liberal sources, said Trudeau told Freeland on Friday she would be replaced by former central banker Mark Carney, who is already advising the prime minister on economic affairs.

Carney, long courted by the Liberals, has stayed out of federal politics. No one in the offices of Freeland or Trudeau was immediately available for comment.

If Trudeau does resign, it will set off a Liberal leadership race that Freeland could join.

She sent an email to party volunteers on Tuesday saying "this will not be the end of the road" but gave no details. The email was posted on X by journalist Stephen Maher.

LIBERALS LOSE SPECIAL ELECTION

To underline the party's woes, it badly lost a special election in the western province of British Columbia.

While Trudeau cannot be forced out by his caucus, he may find it harder to stay if enough parliamentarians openly call on him to go. Only a handful have done so publicly but that number is growing.

Veteran Liberal legislator John McKay, who has remained loyal to Trudeau, told CBC the prime minister needed to make a decision about his future sooner rather than later.

Trudeau is safe for now, since the only way he can be toppled is if all opposition parties unite against him on a vote of non-confidence. Such a vote could not happen until after the House of Commons elected chamber returns on Jan. 27.

Liberal legislator Wayne Long, who had previously called on Trudeau to quit, told reporters the prime minister was "delusional if he thinks we can continue like this ... We're not just taking on water, we're underwater".

The opposition Bloc Quebecois demanded an immediate election, saying Canada needed a properly functioning government to deal with the incoming US administration and its threats to impose 25% tariffs on Canadian imports.

A Nanos Research poll released on Tuesday showed the Conservatives have 43% public support, the Liberals have 23% and the smaller left-leaning New Democrats are attracting 20% support. Such a result on Election Day would produce a massive Conservative majority.