OTTAWA, (TDI): In a surprising move, Canada’s Deputy PM Chrystia Freeland resigned following a disagreement with Prime Minister Justin Trudeau over US President-elect Donald Trump’s proposed tariff threats.
Freeland, 56, who also stepped down as finance minister, became the first cabinet member to publicly challenge Trudeau, potentially undermining his grip on power.
Canada’s Deputy PM’s departure came at a time when Trudeau’s popularity was waning, with the Liberal leader trailing 20 points behind his main rival, Conservative Pierre Poilievre, who has tried repeatedly to force a snap election since September.
“It’s not been an easy day,” Trudeau said at a fundraiser Monday evening. “But in difficult times, we must all pull together.”
Freeland, who had been scheduled to provide an update on Canada’s finances, addressed her resignation in a letter to Trudeau, stating that the country faced a serious challenge, citing Trump’s planned 25% tariffs on Canadian imports.
She mentioned that in recent weeks, she and Trudeau had found themselves at odds over the best course of action for Canada.
A member of Parliament since 2013, Freeland had held key roles in Trudeau’s cabinet, including trade and foreign affairs minister, and had led negotiations on free trade agreements with the European Union and the US.
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She was also involved in managing Canada’s response to the incoming Trump administration. As the first woman to serve as finance minister, she had been seen as a potential successor to Trudeau.
Dominic LeBlanc, the public safety minister, was quickly sworn in as the new finance minister. Later in the day, the government announced a C$62 billion (US$43.5 billion) deficit, approximately C$22 billion more than expected due to unforeseen expenses.
LeBlanc will now take over negotiations with the Trump administration and promised to stay focused on the challenges ahead.
With the US being Canada’s largest trading partner, Freeland had warned that Trump’s tariff threats could lead to a “tariff war” and urged the government to keep its “fiscal powder dry.”
She criticized costly political initiatives like a recent sales tax holiday, which some had deemed too expensive.
Lori Turnbull, a professor at Dalhousie University, described Freeland’s resignation as a “total disaster” and suggested it indicated a “crisis of confidence” in Trudeau.
Genevieve Tellier, a professor at the University of Ottawa, noted that Freeland’s departure revealed cracks in Trudeau’s cabinet, which had otherwise stood united during his leadership.
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The fallout from Freeland’s exit continued as Housing Minister Sean Fraser also resigned on Monday. Fraser praised Freeland as “professional and supportive.” One of Freeland’s closest allies, Anita Anand, expressed her shock and sadness at the news.
Despite the turmoil, Freeland announced she would run for re-election in the next parliamentary vote, expected by October 2025.
Trudeau has expressed his intent to lead the Liberals into that election, though some media speculated that he might step down in the wake of Freeland’s resignation.
His office quickly dismissed these reports, calling them “absolutely not accurate.”
