Michelle ThompsonCanada’s Finance Minister Chrystia Freeland has stepped down, citing disagreements with Prime Minister Justin Trudeau over how to address U.S. President-elect Donald Trump’s tariff threats.
In her resignation letter to Trudeau on Monday, Freeland highlighted their differing views on Canada’s strategy to tackle Trump’s “aggressive economic nationalism,” calling it a serious challenge. She revealed Trudeau no longer wanted her as his lead economic adviser, prompting her decision to resign just hours before delivering the fiscal update in parliament.
Freeland’s exit deepens the instability of Trudeau’s minority government, which already faces declining support. The prime minister’s approval rating has plummeted from 63% at his election to 28% recently, and several Liberal MPs have now urged him to step down.
Dominic LeBlanc, a close ally of Trudeau, was sworn in as Freeland’s replacement, but Trudeau refrained from commenting publicly.
Freeland emphasized Canada’s need to maintain financial discipline to counter Trump’s proposed 25% tariffs on Canadian imports, which economists warn could severely impact the economy. She criticized “costly political gimmicks” like Trudeau’s C$250 cheques to lower-income Canadians and a tax break on essential goods, arguing they worsen the deficit, now reported at C$60bn.
Her departure sparked calls for Trudeau’s resignation from opposition leaders. Conservative leader Pierre Poilievre demanded an immediate election, while NDP leader Jagmeet Singh criticized Trudeau but stopped short of withdrawing parliamentary support.
Freeland, who remains a Liberal MP, plans to run in the next federal election, scheduled by October. Her resignation follows Housing Minister Sean Fraser’s decision not to seek re-election.
