Canada Finance Minister Resigns

Freeland, who also served as Deputy Prime Minister, announced her departure on Monday, leaving many questioning how long the unpopular Trudeau can hold onto his position.

In her resignation letter, Freeland revealed that Trudeau had informed her on Friday that he no longer wanted her to remain in her role as finance minister, offering her another cabinet position instead.

However, Freeland argued that the only “honest and viable path” was to step down.

“For the past several weeks, you and I have found ourselves at odds about the best path forward for Canada,” Freeland wrote in her letter to Trudeau.

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The disagreement between the two centered on recent government measures, including a two-month sales tax holiday and $250 (Canadian) checks for citizens.

Freeland criticized these initiatives as “costly political gimmicks” that Canada could ill afford, especially given the looming threat of 25% tariffs imposed by U.S. President-elect Donald Trump.

Freeland, who had chaired a Cabinet committee on U.S. relations, emphasized that Canada needed to be fiscally prudent in preparation for a potential tariff war with the United States.

“Our country is facing a grave challenge,” she wrote. “That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war.”

Freeland’s resignation came just as she was preparing to deliver the fall economic statement, which was expected to include measures to help Canada avoid Trump’s threatened tariffs.

The incoming U.S. president had warned of 25% tariffs on all goods coming from Canada and Mexico unless they take action to curb migration and drug flows.

As Freeland exits, Trudeau’s future remains uncertain. While he has expressed his intention to lead the Liberal Party into the next election, some within his own party are questioning whether he should seek a fourth term.

It is unclear what impact Freeland’s resignation will have on the prime minister’s leadership, but it is undeniably a significant blow.

The announcement took many by surprise, including Transport Minister Anita Anand, who called it a “bombshell” and said she needed time to process the news before making further comments.

Opposition leader Pierre Poilievre of the Conservative Party seized on the moment, accusing Trudeau of losing control at a crucial time.

“Justin Trudeau has lost control, but he’s hanging onto power,” Poilievre said. “All this chaos, all this division, all this weakness is happening as our largest neighbor and closest ally is imposing 25% tariffs under a recently elected Trump with a strong mandate, a man who knows how to identify weakness.”

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No Canadian prime minister has won four consecutive terms in more than a century, and with the next federal election due by October, Trudeau’s ability to maintain the support of key allies in Parliament is becoming more tenuous.

If the opposition New Democratic Party (NDP) withdraws its support, an election could be triggered at any time.

Trudeau’s rise to power in 2015 was built on his ability to channel the star power of his father, the late Prime Minister Pierre Trudeau, and his promise to restore Canada’s liberal identity after nearly a decade of Conservative rule.

But now, with Canadians facing rising living costs and other challenges—including immigration tensions and the aftermath of the COVID-19 pandemic—his leadership is being increasingly called into question.

Ontario Premier Doug Ford captured the mood in Ottawa, saying, “As a country, we have to project strength. It’s chaos right now up in Ottawa.”

Freeland, in her resignation letter, also reflected on the impermanence of political power, noting that Canadians can tell when the government is focused on serving them and when it is more concerned with its own survival. “Inevitably, our time in government will come to an end,” she wrote.

Her resignation comes at a time when Trudeau had been attempting to recruit former Bank of Canada and Bank of England governor Mark Carney to join his government.

Carney, widely respected for his role in steering Canada through the global financial crisis, has long expressed interest in entering politics and even leading the Liberal Party. It remains unclear whether he will accept an offer from Trudeau to join the cabinet.

Political analysts are calling Freeland’s resignation a political earthquake. Nelson Wiseman, a professor emeritus at the University of Toronto, noted that Freeland had long been considered a potential successor to Trudeau, and her departure marks a significant shift in the Liberal leadership.

“There was talk about her becoming foreign minister again, and that would have been a good fit for her, but the stab in the back from the prime minister’s office has sealed her fate,” Wiseman said.

Daniel Béland, a political science professor at McGill University, described the resignation as a “political earthquake” not only because Freeland was the second-most powerful figure in government but also because of the manner in which it happened.

Freeland publicly criticized Trudeau just hours before she was set to deliver the government’s fall economic statement, an unusually public rebuke.

“This is clearly a minority government on life support,” Béland said. “It’s hard to know whether this resignation will force the NDP to rethink its strategy.”

NDP leader Jagmeet Singh released a statement but did not comment on whether his party would support a motion to bring down the government. Instead, he focused on the need for stronger action to protect Canadian jobs from Trump’s tariffs.

“While the Liberals fight with each other, I believe we should be fighting for Canadians’ jobs at risk from Donald Trump’s tariffs,” Singh said. “People deserve a government that fights for you for a change.”