Justin Trudeau Will Step Down As Canada Faces Tension Over Trump Tariffs - JPMorgan BetaBuilders Canada E

Canadian Prime Minister Justin Trudeau, who has been in power for nearly 10 years, announced his resignation Monday.

Trudeau said he will step down after the Liberal Party selects its new leader and said the Parliament will be suspended until March 24.

"I care deeply about this country and I will always be motivated by what is in the best interests of Canadians. And the fact is, despite best efforts to work through it, Parliament has been paralyzed for months after what has been the longest session of a minority Parliament in Canadian history," he said.

Canada Stocks To Watch With Trump Tariff Threats, Trudeau Exit On Horizon

U.S.-traded stocks of major Canadian companies, particularly in the financial and energy sectors, could experience volatility due to this political upheaval. Mexico, Canada and China — the three countries U.S. President-elect Donald Trump has targeted for tariffs — are the U.S.'s top three trading partners.

Canadian banking institutions traded in the U.S. include the : Royal Bank of Canada (NYSE:RY), Toronto-Dominion Bank (NYSE:TD), Bank of Montreal (NYSE:BMO) and the Canadian Imperial Bank of Commerce (NYSE:CM).

Energy companies could also be affected by the political upheaval in Canada: they include e Enbridge Inc. (NYSE:ENB), TC Pipelines (NYSE:TRP), Suncor Energy Inc. (NYSE:SU) and Canadian Natural Resources Ltd. (NYSE:CNQ).

In the tech sector, Ottawa-based Shopify Inc. (NYSE:SHOP) is trading up 3.7%.

Trudeau's announcement comes shortly after the resignation of Finance Minister Chrystia Freeland, who stepped down in mid-December due to disagreements with Trudeau’s spending proposals. Freeland, who also served as deputy prime minister, left the cabinet because she believed Trudeau was not taking adequate measures to prepare for a potential trade war with Washington.

Canadian ETFs likely to be affected by this political firestorm, according to Benzinga Pro, include JPMorgan BetaBuilders Canada ETF (BATS:BBCA) which is trading up 0.9%; the iShares MSCI Canada ETF (NYSE:EWC), up 0.79%; SPDR Solactive Canada ETF (NYSE:ZCAN), up 0.88%; and Invesco CurrencyShares (NYSE:FXC), up 0.59%. The Franklin FTSE Canada ETF (NYSE:FLCA) is trading 0.95% higher midday Monday.