In a surprising turn of events, Canada’s Deputy Prime Minister Chrystia Freeland has stepped down after clashing with Prime Minister Justin Trudeau over the tariff threats posed by US president-elect Donald Trump.
Ms. Freeland’s resignation represents the first major dissent from within Mr. Trudeau’s cabinet, potentially jeopardizing his grip on power.
Currently, Mr. Trudeau, the leader of the Liberal Party, trails behind his Conservative rival Pierre Poilievre by 20 points in the polls. Poilievre has attempted to unseat the government and calls for a snap election on three separate occasions since September.
“Today has not been easy,” Mr. Trudeau remarked at a fundraiser last evening. Yet, during challenging times, he noted, “we must all pull together.”
Justin Trudeau has expressed his intention to lead the Liberals into the next election.
In her resignation letter addressed to Mr. Trudeau, the deputy leader pointed out that the country “faces a grave challenge,” specifically referencing Trump’s proposed 25% tariffs on Canadian imports.
“In recent weeks, you and I have found ourselves in disagreement concerning the best direction for Canada,” she noted.
In response to Ms. Freeland’s unexpected exit, Mr. Trump posted: “She will not be missed!!!”
“Her behavior [sic] was completely toxic and unhelpful for reaching deals beneficial to the dissatisfied citizens of Canada,” he expressed in a statement on Truth Social.
First elected to parliament in 2013, Ms. Freeland, a former journalist, entered Mr. Trudeau’s cabinet two years later when the Liberals regained power. She held significant positions, including trade and foreign minister, leading free trade discussions with both the European Union and the United States.
Most recently, she had been charged with overseeing Canada’s response to the upcoming Trump administration.
As the first woman to manage the country’s finances, she had also been considered a potential successor to Mr. Trudeau.
LeBlanc Takes Over
By the end of the day, Dominic LeBlanc, the public safety minister, was inaugurated as the new finance minister, coinciding with the announcement of a $62 billion deficit (€41.38bn) — approximately $22 billion higher than previously anticipated due to “unexpected expenses.”
Mr. LeBlanc will now lead negotiations with Trump’s team and has vowed to remain “focused on the challenges” ahead.
Canada’s primary trading partner is the United States, with 75% of its exports each year directed to its southern neighbor.
Last month, Mr. Trudeau traveled to Florida to dine with Mr. Trump at Mar-a-Lago in an attempt to alleviate the tariff threat; however, there has been no indication that the US President-elect is reconsidering his stance.
Conservative Party leader Pierre Poilievre remarked that Mr. Trudeau’s government is “spiraling out of control.”
In her correspondence, Ms. Freeland emphasized the importance of taking Mr. Trump’s tariff threats “extremely seriously.”
She cautioned that this could lead to a “tariff war” with the United States, stating that Canada must keep its “fiscal powder dry.”
“This means avoiding costly political gimmicks, which we can ill afford,” she added, subtly criticizing a recent sales tax holiday deemed excessively expensive by critics.
In another setback for the Canadian leader, Housing Minister Sean Fraser also resigned, calling Ms. Freeland “professional and supportive.”
Ms. Freeland has confirmed her intention to run for re-election in the next parliamentary elections, which are anticipated by October 2025.
Mr. Trudeau has indicated he intends to lead the Liberals into the upcoming election.
While some media sources speculated about Mr. Trudeau potentially stepping down following Ms. Freeland’s unexpected exit, his office firmly denied such reports, labeling them as “absolutely not accurate.”
