Canada’s Deputy Prime Minister Chrystia Freeland resigned on Monday in a shocking move after a disagreement with Prime Minister Justin Trudeau over US President-elect Donald Trump’s proposed tariff threats. Freeland also stepped down as finance minister, marking the first significant dissent within Trudeau’s cabinet, a development that could challenge his grip on power.
Trudeau, leader of the Liberal Party, is trailing 20 points in the polls behind Conservative rival Pierre Poilievre, who has attempted to bring down the government and force a snap election three times since September.
In her resignation letter, Freeland described the situation as a “grave challenge” for Canada, specifically referencing Trump’s planned 25 percent tariffs on Canadian imports. She stated that she and Trudeau had been at odds for weeks over the best way forward for the country.
A former journalist, Freeland was first elected to parliament in 2013 and joined Trudeau’s cabinet in 2015 when the Liberals won power. She held several key roles, including trade and foreign minister, and played a leading role in negotiations for free trade agreements with the EU and the United States. Most recently, she was overseeing Canada’s response to the actions of the incoming Trump administration.
As Canada’s largest trading partner, the United States receives 75 percent of Canada’s annual exports. In her resignation letter, Freeland noted that Trudeau had intended to reassign her to another position, but she concluded that resignation was the only honest option. She emphasized the need to take Trump’s tariff threats “extremely seriously,” warning that they could spark a “tariff war” with the US. She also urged Ottawa to remain financially prudent, criticizing what she saw as costly political tactics, like a sales tax holiday, which some viewed as aimed at boosting the Liberal Party’s diminishing political standing.
Freeland’s departure has sparked concern for Trudeau. Dalhousie University professor Lori Turnbull called it “a total disaster,” highlighting the crisis of confidence it signifies for the Prime Minister. Genevieve Tellier, a University of Ottawa professor, noted that Freeland’s rejection of Trudeau’s economic policies presents a significant challenge, revealing divisions within the cabinet.
The resignation came on the same day that Freeland was scheduled to provide an update on Canada’s finances, with reports indicating the government was poised to exceed Freeland’s deficit projections. Conservative Deputy Leader Andrew Scheer remarked that Freeland’s departure was a sign that even she had lost confidence in Trudeau.
Housing Minister Sean Fraser, who also announced his departure from politics on Monday, praised Freeland as “professional and supportive.” One of Freeland’s closest allies in the cabinet, Anita Anand, expressed her shock, calling the news “hard-hitting.”
Freeland confirmed that she would run in the upcoming 2025 federal election.
