In a surprising turn of events, Canadian Finance Minister Chrystia Freeland resigned on Monday following a heated clash with Prime Minister Justin Trudeau over how to handle potential U.S. tariffs. The unexpected departure deals a significant blow to Trudeau’s government, which has been grappling with declining popularity.
Freeland, 56, who also served as Deputy Prime Minister, submitted her resignation just hours before she was scheduled to present the fall economic update to Parliament. In her resignation letter, she criticized Trudeau’s push for increased spending, labeling it a political gimmick that could undermine Ottawa’s ability to respond to the 25 percent import tariffs that U.S. President-elect Donald Trump has threatened to impose.
The resignation marks one of the most significant crises for Trudeau since he took office in November 2015, leaving him without a key ally as he faces the possibility of losing the next election to the opposition Conservatives. Public Safety Minister Dominic LeBlanc, a close confidant of Trudeau, was swiftly appointed as the new finance minister.
The Liberal government’s fiscal approach has come under scrutiny, with the latest economic update revealing a higher-than-expected budget deficit of C$61.9 billion ($43.4 billion) for the 2023/24 fiscal year. The deficit has raised concerns about Canada’s economic resilience amid potential trade tensions with its largest trading partner.
The national Liberal caucus is set to meet later on Monday, with speculation mounting over potential leadership challenges. Two Liberal legislators have renewed their calls for Trudeau to step down, further intensifying the political turmoil.
Opposition parties seized the moment to amplify their demands for Trudeau’s resignation. Jagmeet Singh, leader of the New Democrats, declared, “I’m calling on Justin Trudeau to resign. He has to go.” Singh did not specify whether his party would continue to support Trudeau’s minority government, noting that all options were on the table.
Conservative leader Pierre Poilievre criticized the government’s handling of the situation, stating, “We cannot accept this kind of chaos, division, weakness, while we’re staring down the barrel of a 25 percent tariff from our biggest trading partner.”
Freeland’s departure stems from ongoing disagreements with Trudeau over spending policies. She alleged that Trudeau had asked her to accept a lesser post during a meeting last Friday, following weeks of disputes over fiscal strategy.
The political upheaval comes at a critical time, as Parliament is set to break for Christmas on Tuesday and will not reconvene until January 27. With the looming threat of U.S. tariffs and internal divisions within the Liberal Party, Canada’s political landscape faces uncertainty in the months ahead.
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Canadian finance minister quits after clash with PM over Trump tariffs
cgtn.com
