Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, resigned on Monday in a surprising and politically significant move following a disagreement with Prime Minister Justin Trudeau over U.S. President-elect Donald Trump’s tariff threats.
Freeland, 56, is a key figure within Trudeau’s cabinet, and her departure marks the first instance of open dissent from within his inner circle, signaling potential cracks in the unity of his leadership.
Freeland’s resignation comes at a precarious time for Trudeau, whose popularity has waned significantly. Recent polls show Trudeau trailing his main political opponent, Conservative leader Pierre Poilievre, by a substantial 20-point margin.
Poilievre, who has been gaining momentum, has attempted to oust Trudeau’s government three times since September in a bid to trigger a snap election. Freeland’s abrupt exit could further weaken Trudeau’s leadership and embolden opposition efforts to challenge his hold on power.
“It’s not been an easy day,” Prime Minister Justin Trudeau remarked at a fundraiser on Monday evening. However, he emphasized the importance of unity during challenging times, saying, “we must all pull together.”
Chrystia Freeland’s resignation came just hours before she was expected to deliver an update on the nation’s financial situation. In her resignation letter to Trudeau, she underscored the seriousness of the country’s current challenges, particularly referencing U.S. President-elect Donald Trump’s proposed 25% tariffs on Canadian imports.
“For the past several weeks, you and I have disagreed on the best course of action for Canada,” Freeland wrote, signaling a clear divide between her and the prime minister.
Trump weighed in on her unexpected resignation later that evening, posting a blunt response: “She will not be missed!!!”
In a post on Truth Social, Donald Trump criticized Chrystia Freeland’s approach, stating, “Her behavior was totally toxic and not at all conducive to making deals that would benefit the unhappy citizens of Canada.”
Freeland, a former journalist, was first elected to Parliament in 2013. She quickly rose through the ranks, joining Prime Minister Justin Trudeau’s cabinet in 2015 after the Liberal Party’s sweeping victory. Over the years, she held several prominent positions, including Minister of Trade and Foreign Affairs, where she played a leading role in negotiating major free trade agreements with both the European Union and the United States.
More recently, Freeland was tasked with helping guide Canada’s response to the incoming Trump administration. As Canada’s first female finance minister, she had also been widely considered a strong contender to eventually succeed Trudeau as Liberal Party leader.
By the end of the day, Dominic LeBlanc, Canada’s Public Safety Minister, was officially sworn in as the new Finance Minister. His appointment came at a critical moment, as the government revealed a significant budget deficit of 62 billion Canadian dollars (approximately 43.5 billion US dollars), which was 22 billion more than previously forecast. The shortfall was attributed to “unexpected expenses,” further amplifying the economic challenges facing the Trudeau government.
LeBlanc now faces the formidable task of leading Canada’s financial strategy and negotiating with the incoming Trump administration, which has threatened heavy tariffs on Canadian imports. Acknowledging the difficulties ahead, LeBlanc pledged to remain “focused on the challenges” and work toward solutions that stabilize the economy.
The stakes are high for Canada, as the United States remains its largest trading partner, accounting for 75% of Canadian exports annually. Recognizing the importance of maintaining strong economic ties, Prime Minister Justin Trudeau traveled to Florida last month for a meeting with Donald Trump at his Mar-a-Lago resort. The dinner was part of an effort to ease tensions and avert the tariff threat; however, there is still no indication that the U.S. president-elect plans to alter his stance.
In her resignation letter, Chrystia Freeland emphasized the seriousness of U.S. President-elect Donald Trump’s tariff threats, urging that Canada must approach the issue with the utmost caution. She warned that failing to do so could escalate into a full-blown “tariff war” with the United States, Canada’s largest trading partner. Freeland stressed the importance of maintaining fiscal discipline, stating that Ottawa must keep its “fiscal powder dry” to navigate the economic challenges ahead.
Her remarks appeared to take aim at the Trudeau government’s recent policies, particularly a controversial sales tax holiday, which critics argued was too expensive and unsustainable. Referring to such measures as “costly political gimmicks,” Freeland underscored that Canada could not afford unnecessary expenditures in the face of mounting economic uncertainty.
The political implications of Freeland’s abrupt departure have been significant. Lori Turnbull, a professor at Dalhousie University, described the resignation as “a total disaster” for Trudeau’s leadership. According to Turnbull, Freeland’s exit reflects a “crisis of confidence” in Trudeau’s ability to lead effectively. She argued that losing such a high-profile and influential member of his cabinet makes it far more difficult for Trudeau to maintain his position as prime minister.
Until now, Prime Minister Justin Trudeau’s cabinet had largely remained united, even as he faced sporadic dissent from backbench Members of Parliament (MPs). However, according to Genevieve Tellier, a professor at the University of Ottawa, Chrystia Freeland’s resignation exposes cracks in the government’s unity. “Her departure demonstrates that Trudeau’s team is not as solidly united behind him as many had believed,” Tellier observed, suggesting deeper divisions within the Liberal leadership.
The political turmoil was on full display following a tense cabinet meeting. One by one, ministers exited the session and walked past a throng of reporters, who shouted questions about the resignation and the state of Trudeau’s government. Some ministers tried to project confidence, calling out that they still had “confidence in the prime minister,” but many remained silent, their somber expressions leaving unanswered questions about the government’s stability.
Pierre Poilievre, the leader of the Conservative Party and Trudeau’s main rival, seized the moment to criticize the government’s leadership. “We simply cannot go on like this,” he declared, describing the situation as a government “spiraling out of control… at the very worst time.” His remarks underscored the growing political crisis and mounting pressure on Trudeau’s government amid economic uncertainty and internal discord.
In another setback for Prime Minister Justin Trudeau, Housing Minister Sean Fraser also resigned on Monday, further deepening the political turmoil. Fraser praised Chrystia Freeland, describing her as “professional and supportive” during their time together in cabinet.
Anita Anand, one of Freeland’s closest allies and friends within Trudeau’s team, expressed her deep personal impact over the news. Speaking to reporters, she admitted, “This news has hit me really hard,” reflecting the emotional toll Freeland’s departure has had on her colleagues.
Despite resigning from cabinet, Freeland confirmed her intention to run for reelection in the next parliamentary polls, expected no later than October 2025. Trudeau, for his part, has made it clear that he plans to continue leading the Liberal Party into the next election.
In response to speculation from some media outlets that Freeland’s resignation might prompt Trudeau to step down, the Prime Minister’s Office firmly denied the reports, calling them “absolutely not accurate.” This assertion signals Trudeau’s determination to remain at the helm amid increasing challenges to his leadership.
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