In a surprising turn of events, Canadian Finance Minister Chrystia Freeland resigned on Monday after a series of clashes with Prime Minister Justin Trudeau over handling potential U.S. tariffs. The resignation deals an unexpected blow to an already unpopular government facing mounting challenges.
Freeland, who also served as Deputy Prime Minister, stepped down 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, calling it a political gimmick that could undermine Canada’s ability to address the looming 25 percent import tariffs promised by U.S. President-elect Donald Trump.
The departure of Freeland, 56, marks one of the most significant crises for Trudeau since taking office in 2015. Her exit leaves the Prime Minister without a key ally at a critical juncture, as his Liberal government faces the possibility of losing the next election to the opposition Conservatives.
Public Safety Minister Dominic LeBlanc, a member of Trudeau’s inner circle, was swiftly appointed as the new Finance Minister. The national Liberal caucus is set to meet later on Monday, amid renewed calls from two Liberal legislators for Trudeau to step down.
Freeland’s resignation comes at a time when the minority Liberal government is grappling with a larger-than-expected budget deficit of C$61.9 billion ($43.4 billion) for 2023/24, as revealed in the economic update. The financial shortfall raises concerns about Canada’s economic resilience in the face of potential trade tensions with its largest trading partner.
Opposition parties have seized the opportunity to escalate pressure on Trudeau. New Democratic Party (NDP) leader Jagmeet Singh called for the Prime Minister’s resignation, marking the first time he has unequivocally demanded Trudeau’s departure. “I’m calling on Justin Trudeau to resign. He has to go,” Singh told reporters.
Singh did not specify whether the NDP would continue to support the Liberals on key legislation, stating that all options were on the table. Trudeau’s government could be toppled if opposition parties unite against him in a vote of no confidence, though such a move cannot happen until next year.
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 cited a contentious meeting with Trudeau last Friday as the tipping point for her decision. According to sources, Trudeau asked her to assume a lesser role after weeks of disagreements over fiscal policy and spending priorities.
The political turmoil in Canada may have significant implications for Asian economies, especially if trade tensions escalate. The proposed U.S. tariffs could disrupt global supply chains, affecting exporters in Asia who rely on North American markets. Investors and market analysts across Asia are closely monitoring the situation, assessing potential risks and opportunities arising from shifts in international trade policies.
As Parliament prepares to break for the holidays, returning on January 27, Canada’s political landscape faces uncertainty. The developments are being closely watched by international observers and investors concerned about the stability and direction of one of the world’s major economies.
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Canadian finance minister quits after clash with PM over Trump tariffs
cgtn.com
