Canada’s finance minister Chrystia Freeland resigns in blow to Justin Trudeau
Canada’s Finance Minister, Chrystia Freeland, resigned on Monday, citing significant differences with Prime Minister Justin Trudeau on how to address the looming threat of tariffs from U.S. President-elect Donald Trump. Her resignation, announced in a letter to Trudeau, came just hours before she was scheduled to deliver the annual fiscal update in Parliament.
Freeland described her departure as a response to Trudeau’s decision to replace her as the government’s top economic adviser. She emphasized the “grave challenge” posed by Trump’s aggressive economic nationalism and criticized the prime minister’s handling of Canada’s economic strategy in the face of mounting fiscal pressures.
Her letter highlighted the urgent need to combat Trump’s proposed 25% tariff on Canadian goods, a move economists have warned could have devastating effects on Canada’s economy. Freeland urged Canada to adopt a united and pragmatic response, steering clear of what she called “costly political gimmicks” that could strain the country’s growing deficit.
The tension between Freeland and Trudeau reportedly deepened over the prime minister’s recent policies, including a proposed C$250 payment to Canadians earning under C$150,000 and a temporary tax holiday on essential items. Freeland’s office argued these measures were financially unsound, given the country’s ballooning deficit, which reached C$60 billion this year—well above her target of C$40 billion.
Her resignation has sparked political turmoil, with five Liberal MPs openly calling for Trudeau’s resignation. Opposition leader Pierre Poilievre demanded a federal election, stating, “This government is spiraling out of control.” NDP leader Jagmeet Singh echoed calls for Trudeau to step down but stopped short of triggering a vote of no confidence.
Dominic LeBlanc, a close ally of Trudeau, was swiftly sworn in as Freeland’s replacement. However, the move has done little to quell criticism, as Trudeau’s approval ratings continue to plummet, falling to 28% from 63% at the start of his tenure.
Freeland, who also served as Deputy Prime Minister, confirmed she would remain a Liberal MP and intends to run in the next federal election. Her resignation follows Housing Minister Sean Fraser’s recent announcement that he will not seek re-election, citing personal reasons.
Freeland’s exit has raised questions about Trudeau’s leadership and the Liberal government’s future, with political observers predicting further challenges ahead for the embattled prime minister.
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