The abrupt resignation of Canada's Finance Minister Chrystia Freeland on Monday has plunged Prime Minister Justin Trudeau's government into crisis, just weeks before Donald Trump's return to power in the United States threatens new tariffs on Canadian exports, according to Reuters and POLITICO reports.
Freeland, who also served as deputy prime minister, quit after Trudeau attempted to demote her position. In a blunt resignation letter posted on X, she criticized the prime minister's spending plans, warning they could weaken Canada's ability to withstand potential damage from Trump's threatened tariffs.
"You and I have found ourselves at odds," Freeland wrote in her resignation letter, characterizing Trump's "aggressive economic nationalism" as "a grave challenge" while criticizing Trudeau's "costly political gimmicks which we can ill afford."
The political upheaval comes at a critical time for Canada-US relations. Freeland had previously headed a special cabinet committee on Canada-US relations and played a key role in renegotiating the North American free trade agreement during Trump's first term.
"As a country we have to project strength and unity, and it's chaos right now up in Ottawa," Ontario Premier Doug Ford said after a scheduled online conference call of provincial premiers on Monday to discuss the US threat.
Alberta Premier Danielle Smith expressed similar concerns, noting that provincial leaders only learned of the resignation of their point person on Canada-US relations midway through their call. "It's chaos. I'd be looking at this and wondering who the next leader is. Are they going to be able to bring forward a coherent plan?" she said.
The role of chief federal coordinator on US relations now passes to Dominic LeBlanc, the new finance minister, who recently accompanied Trudeau to Florida to meet Trump.
Trump, who had previously expressed displeasure with Freeland during the 2018 trade negotiations, celebrated her departure. "Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada. She will not be missed!!!" he wrote on his social media platform.
The Great State of Canada is stunned as the Finance Minister resigns, or was fired, from her position by Governor Justin Trudeau. Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada. She will not be…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) December 17, 2024
The political uncertainty comes as Trudeau's Liberal Party trails badly in polls ahead of an election that must be held by late October 2025. Some unhappy Liberal legislators, who have been calling for Trudeau's resignation for months, met Monday in Ottawa to voice their frustration.
Vincent Rigby, a former national security and intelligence adviser to Trudeau, said Freeland's departure meant the Canadian stance with Trump was up in the air.
