Ottawa, 17 December 2024: Canada’s Deputy Prime Minister and Finance Minister Chrystia Freeland resigned Monday following disagreements with Prime Minister Justin Trudeau over handling U.S. President-elect Donald Trump’s tariff threats. Freeland’s departure marks the first major dissent within Trudeau’s cabinet and raises questions about his leadership ahead of the next election.
Freeland, a key figure in Trudeau’s Liberal government since 2015, said in her resignation letter that the prime minister’s plans to move her to a different role compelled her decision. “I have concluded that the only honest and viable path is for me to resign from the cabinet,” she wrote.
Freeland, widely recognized for her leadership during trade negotiations with the European Union and the United States, warned that Trump’s tariff threats could spiral into a “tariff war.” Stressing the need for prudent economic policies, she emphasized Ottawa must “keep its fiscal powder dry” in response to mounting U.S. trade pressure.
Her resignation comes at a critical time for Canada, whose economy depends heavily on the United States, accounting for 75% of its annual exports.
Political analysts argue that Freeland’s exit exposes deeper fractures within Trudeau’s government. “It’s a total disaster,” said Dalhousie University professor Lori Turnbull. “It reveals a crisis of confidence in Trudeau and makes it much harder for him to continue as prime minister.”
Until now, Trudeau’s cabinet had appeared united, even as dissent lingered among backbench MPs. Freeland’s open disagreement over economic policy, however, suggests significant divisions.
“This is a big problem,” said Genevieve Tellier, a professor at the University of Ottawa. “It shows Trudeau’s team is not as cohesive as once thought.”
Andrew Scheer, deputy leader of the opposition Conservative Party, criticized Trudeau’s leadership following Freeland’s resignation. “This government is in shambles,” he said. “Even she has lost confidence in Trudeau.”
Housing Minister Sean Fraser also announced Monday he would be leaving politics, describing Freeland as “professional and supportive.” Anita Anand, a close ally and cabinet colleague, expressed deep disappointment: “This news has hit me really hard,” she told reporters.
Freeland, who entered parliament in 2013 after a successful journalism career, played central roles as trade and foreign minister before her appointment as finance minister.
Despite her resignation, she confirmed plans to run in the next federal election expected in 2025.
Her departure leaves Trudeau’s leadership visibly weakened, and questions remain about whether he can maintain control over his fracturing government amid growing opposition and internal discord.