On December 16, 2024, Chrystia Freeland resigned from her positions as Canada’s Deputy Prime Minister and Finance Minister, citing fundamental disagreements with Prime Minister Justin Trudeau over economic policy and the government’s response to anticipated U.S. tariffs under President-elect Donald Trump.
Freeland, a pivotal figure in Trudeau’s administration since 2019, expressed opposition to proposed government spending measures, including a sales tax holiday and rebate checks, which she described as “costly political gimmicks.” She advocated for fiscal restraint to prepare for potential economic challenges posed by impending U.S. tariffs.
Her resignation has intensified political challenges for Prime Minister Trudeau, whose approval ratings have been declining amid economic concerns. In response, Trudeau appointed Public Safety Minister Dominic LeBlanc as the new Finance Minister. Opposition leaders, including Conservative leader Pierre Poilievre and NDP leader Jagmeet Singh, have called for Trudeau’s resignation and are considering a vote of no confidence, signaling potential instability within the Liberal government.
Freeland intends to continue serving as a Member of Parliament and plans to seek re-election in her Toronto riding in 2025. Her departure underscores internal divisions within the Liberal Party and raises questions about the government’s strategy in addressing forthcoming economic challenges, particularly in light of President-elect Trump’s tariff threats.
This development comes at a critical juncture for Canada, as the government grapples with economic pressures and prepares for the potential impact of U.S. trade policies. Freeland’s resignation may influence the Liberal Party’s direction and leadership as the country approaches the next federal election.