In an unexpected turn of events, Canadian Finance Minister Chrystia Freeland resigned on Monday after a significant clash with Prime Minister Justin Trudeau over the handling of potential U.S. tariffs. The disagreement, centering on the response to President-elect Donald Trump’s proposed 25 percent import tariffs, has dealt a severe blow to Trudeau’s already embattled government.
Freeland, 56, who also served as Deputy Prime Minister, submitted a resignation letter dismissing Trudeau’s push for increased spending as a political gimmick. She warned that such fiscal policies could undermine Ottawa’s ability to address the looming trade challenges posed by the incoming U.S. administration.
The resignation marks one of the most critical crises Trudeau has faced since assuming office in November 2015. Losing Freeland, a key ally and prominent figure in his cabinet, leaves the Prime Minister vulnerable as he confronts rising opposition and dwindling public support.
In the immediate aftermath, Public Safety Minister Dominic LeBlanc, a close confidant of Trudeau, was swiftly appointed as the new Finance Minister. However, questions remain about the stability of the government and its capacity to navigate the impending economic hurdles.
The Liberal caucus is scheduled to meet later on Monday, with speculation mounting about potential challenges to Trudeau’s leadership. Two Liberal legislators have renewed their calls for the Prime Minister to step down, intensifying the internal turmoil within the party.
Freeland’s resignation came just hours before she was set to present a fall economic update to Parliament. The report revealed a 2023/24 budget deficit of C$61.9 billion ($43.4 billion), significantly higher than anticipated, adding fuel to the fiscal policy debate at the heart of her dispute with Trudeau.
Opposition parties have seized the moment to apply pressure. Jagmeet Singh, leader of the New Democrats, called unequivocally for Trudeau’s resignation for the first time, stating, “I’m calling on Justin Trudeau to resign. He has to go.” While Singh did not specify whether his party would continue to support the government, he emphasized that all options were on the table.
The Conservatives, led by Pierre Poilievre, criticized the government’s handling of the situation. Poilievre remarked, “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.”
Despite the escalating political crisis, Parliament is due to break for Christmas on Tuesday and will not return until January 27. Trudeau’s government, which operates as a minority, can only be toppled if the opposition parties unite against him in a vote of no confidence, an event that cannot occur until the new year.
Freeland indicated that her decision to resign followed a meeting with Trudeau last Friday, during which he asked her to accept a lesser role after weeks of disagreement over spending policies. Her departure underscores the deep divisions within the government regarding Canada’s economic direction and response to international trade challenges.
Reference(s):
Canadian finance minister quits after clash with PM over Trump tariffs
cgtn.com
