Meanwhile, a big surprise for everyone was Canada Deputy PM Chrystia Freeland resigning because she had a difference of opinion with Prime Minister Justin Trudeau on the US President-elect Donald Trump’s proposed tariffs to be imposed.
Freeland, 56, who also stepped down as the finance minister, became the first person at cabinet level to challenge Trudeau publicly, an act that would potentially undermine his power. Her resignation coincided with a time when popularity for Trudeau was dwindling, given that the Liberal leader trailed behind his chief rival, Conservative Pierre Poilievre, by some twenty points in September, when the latter had been trying to force a snap election.
“It’s not been an easy day,” Trudeau said at a fundraiser Monday evening. “But in difficult times, we must all pull together.”
Freeland was supposed to update everyone on finances in Canada, but she announced her resignation instead with a letter sent to Trudeau, saying the country is facing some very serious challenges due to Trump’s proposed 25% duties on imports from Canada. In the letter, she included that she and Trudeau had been finding themselves in conflict over how best to handle things for the country in recent weeks.
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Freeland, a member of Parliament since 2013, was at the center of Trudeau’s cabinet, serving as both trade and foreign affairs minister, having led the negotiations for free trade agreements with the European Union and the US. She was among those managing Canada’s response to Trump’s presidency. Often considered a front-runner to replace Trudeau, Freeland was the first woman appointed finance minister.
Almost immediately, Dominic LeBlanc was sworn into the office of finance minister, following his appointment as the new public safety minister. Late in the day, the government announced a C$62 billion (US$43.5 billion) deficit, which was approximately C$22 billion larger than expected due to unforeseen expenses. LeBlanc will take up negotiations with the Trump administration and promised to remain focused on whatever challenges lay 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 expensive political initiatives such as a recent sales tax holiday that some considered too costly to implement.
“Lori Turnbull, professor at Dalhousie University: ‘Freeman’s resignation is a total disaster and goes to indicate a crisis of confidence in Trudeau.'” “Freeland’s leaving demonstrates the cracks within Trudeau’s cabinet; the cabinet, until now, has stood strongly united under his leadership,” noted Genevieve Tellier, a professor at the University of Ottawa.
That was not all. Also resigning on Monday was Housing Minister Sean Fraser, who offered praise for Freeland as being “very professional and supportive”. One of Freeland’s closest allies, Anita Anand, expressed her shock and sadness over the announcement.
Still, Freeland declared she would seek re-election in the next parliamentary vote, which is expected to happen by October 2025. Trudeau has announced that he intends to lead the Liberals into that election; however, there was some speculation in the media that he might stand down as a result of Freeland’s resignation. His office wasted no time in trashing such rumors, saying they were “absolutely not accurate.”