Canada’s Finance Minister Resigns After Clash with PM Over U.S. Tariff Threat

Canadian Finance Minister Chrystia Freeland resigned on Monday after clashing with Prime Minister Justin Trudeau over how to handle potential U.S. tariffs, delivering an unexpected blow to an already embattled government.

In her resignation letter, Freeland, who also served as deputy prime minister, criticized Trudeau’s push for increased spending, labeling it a political gimmick that could hinder Ottawa’s ability to respond to the 25 percent import tariffs that U.S. President-elect Donald Trump has threatened to impose.

The departure of Freeland, 56, marks one of the most significant crises Trudeau has faced since assuming office in November 2015. Her exit leaves the prime minister without a key ally at a time when his government is facing declining popularity and mounting challenges.

Public Safety Minister Dominic LeBlanc, a close confidant of Trudeau, was swiftly appointed as the new finance minister.

The national Liberal caucus is scheduled to meet later on Monday, though details have not been disclosed. Meanwhile, two Liberal legislators have renewed calls for Trudeau to step down, intensifying the pressure on the prime minister.

Freeland’s resignation came just hours before she was set to present a fall economic update to parliament. The report revealed that the government had incurred a budget deficit of C$61.9 billion ($43.4 billion) for the 2023/24 fiscal year, significantly higher than projected.

Trudeau is also facing pressure from the New Democratic Party (NDP), with its leader Jagmeet Singh openly calling for his resignation for the first time.

“I’m calling on Justin Trudeau to resign. He has to go,” Singh told reporters. When asked whether the NDP would continue to support Trudeau’s minority government, Singh stated that all options were on the table.

The prime minister’s position could be jeopardized if the opposition parties unite against him in a vote of no confidence, though such a move cannot occur until the new year. Parliament is scheduled to adjourn for the holidays on Tuesday and will reconvene on January 27.

Conservative leader Pierre Poilievre accused the government of spiraling out of control. “We cannot accept this kind of chaos, division, and weakness while we’re facing the prospect of a 25 percent tariff from our biggest trading partner,” he told reporters.

Freeland stated that she decided to resign following a meeting with Trudeau last Friday, during which he asked her to accept a lesser role after weeks of disagreements over fiscal policy.

“The government’s current approach jeopardizes our economic stability at a critical time,” Freeland wrote in her resignation letter. “I cannot in good conscience continue to serve under these circumstances.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top