Chrystia Freeland, Canada’s Deputy Prime Minister and Finance Minister, has resigned following a disagreement with Prime Minister Justin Trudeau over how to handle tariff threats from incoming U.S. President Donald Trump.
Freeland announced her decision on Monday, marking a significant blow to Trudeau’s government and potentially threatening his hold on power. Her resignation comes as Trudeau faces declining poll numbers, trailing Conservative leader Pierre Poilievre by 20 points.
In her resignation letter, Freeland revealed a growing rift with Trudeau over his handling of Trump’s proposed 25% tariff on Canadian imports. She criticized the government’s response, emphasizing the need for fiscal restraint and caution to avoid a “tariff war” with Canada’s largest trading partner.
“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” Freeland wrote, adding that Trudeau had attempted to reassign her to another position in the cabinet.
Freeland, a seasoned politician and former journalist, has been a key figure in Trudeau’s administration since 2015, holding crucial portfolios including trade, foreign affairs, and finance. Her leadership in major negotiations, including the North American free trade agreement, earned her wide acclaim.
Her departure coincides with growing dissent within Trudeau’s cabinet and follows a wave of criticism over the government’s spending policies, including a controversial sales tax holiday. Analysts suggest her exit underscores a “crisis of confidence” in Trudeau’s leadership.
Lori Turnbull, a professor at Dalhousie University, described Freeland’s resignation as “a total disaster” for the government, highlighting the significant impact it could have on Trudeau’s ability to govern effectively.
Freeland stated she remains committed to running in the 2025 elections but will no longer serve in Trudeau’s cabinet.
The resignation also comes amid broader political challenges for the Liberal Party, including the recent exit of Housing Minister Sean Fraser and repeated attempts by opposition leaders to force a snap election.
As Trudeau navigates this political storm, critics have warned of further instability within his administration. Conservative deputy leader Andrew Scheer remarked, “Even she has lost confidence in Trudeau,” signaling the growing pressure on the prime minister.
