Janice R. Andrews
Canada’s Deputy Prime Minister Chrystia Freeland resigned on Monday in a surprise move after a disagreement with Prime Minister Justin Trudeau regarding how to address U.S. President-elect Donald Trump’s proposed 25% tariffs on Canadian goods. This marks the first major sign of division within Trudeau’s cabinet and poses a serious challenge to his leadership, especially as his Liberal Party trails the opposition Conservatives by 20 points in recent polls.
Freeland, who also held the position of finance minister, expressed in her resignation letter that she and Trudeau had differing views on how best to proceed with Canada’s response to Trump’s tariff threats. “Our country today faces a grave challenge,” she wrote, highlighting the urgent need to address the looming tariffs cautiously.
Freeland’s Key Role and Influence
Freeland, first elected to Parliament in 2013, became a key figure in Trudeau’s cabinet, taking on crucial roles such as trade and foreign minister. She played a pivotal role in renegotiating key trade agreements with the U.S. and the EU and led Canada’s economic response to the incoming Trump administration.
As finance minister, Freeland was known for advocating fiscal prudence, especially in light of potential trade conflicts with the U.S. She criticized recent government measures, like a sales tax holiday, arguing that they were “costly political gimmicks” that could undermine Canada’s fiscal health.
In her resignation letter, Freeland revealed that Trudeau had proposed reshuffling her to another role within the cabinet, a move she rejected. “The only honest and viable path is for me to resign,” she stated.
Trudeau Faces Growing Pressure
Freeland’s resignation has sparked significant political fallout, with analysts and opposition leaders alike describing it as a major setback for Trudeau’s leadership.
Dalhousie University professor Lori Turnbull called the resignation “a total disaster,” indicating a deepening lack of trust in Trudeau’s leadership. “This makes it much harder for Trudeau to continue as prime minister,” she said.
University of Ottawa professor Genevieve Tellier also noted that Freeland’s decision to step down exposes cracks within Trudeau’s cabinet and shows a lack of unity in his government.
In addition to Freeland’s exit, Housing Minister Sean Fraser also announced he would leave politics, compounding Trudeau’s challenges. Conservative leader Pierre Poilievre’s deputy, Andrew Scheer, remarked, “Even she has lost confidence in Trudeau.”
Freeland Plans to Run Again
Despite her resignation, Freeland assured the public that she intends to run in the next federal election, which is expected to take place in 2025.
Her departure came on the same day that she was scheduled to deliver a fiscal update, with reports suggesting the government was on track to exceed the deficit projections she made in the spring.
Economic Concerns and the Future
Canada’s economy, heavily reliant on trade with the U.S., now faces increased uncertainty as Trump’s tariff threats loom large. With 75% of Canadian exports directed to the U.S., the potential for a tariff war could have severe economic consequences. Freeland’s resignation leaves a significant leadership void in addressing these risks.
Anita Anand, a close ally of Freeland in the cabinet, expressed her shock, describing Freeland as “professional and supportive.”
As Trudeau grapples with these challenges, the pressure to restore confidence within his party and across Canada continues to grow, leaving his political future uncertain.
