In a surprising development, Canadian Deputy Prime Minister Chrystia Freeland has resigned from her position as Finance Minister, dealing a significant setback to Prime Minister Justin Trudeau. Freeland, a key figure in the Trudeau administration, had been one of the most influential members of the government for years.
Freeland’s resignation came after she received an offer for another role in the cabinet from Trudeau, but she ultimately decided to step down. In her resignation letter, she stated, “On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the Cabinet. Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet.”
The letter went on to address the current economic situation, with Freeland emphasizing the need for fiscal caution, particularly in preparation for potential challenges such as a trade conflict with the U.S. under a possible second term for former President Donald Trump. “Our country today faces a grave challenge. We need to take that threat extremely seriously,” Freeland wrote, urging the government to avoid “costly political gimmicks” that could erode public trust.
Sources indicate Freeland’s resignation was partly driven by disagreements with Trudeau over how to respond to the economic threats posed by Trump’s trade policies. Freeland had been pivotal in strategizing Canada’s countermeasures to Trump’s proposed tariffs, which further complicated her position in the government.
Her resignation is a significant blow to Trudeau, who is facing declining approval ratings ahead of Canada’s upcoming general elections. The announcement came just hours before she was due to present a key economic update in Parliament. The Canadian dollar immediately dropped, and bond yields surged in response to the news.
Freeland’s departure also follows a turbulent period for the Trudeau government, which has struggled with internal conflicts, including the resignation of former Finance Minister Bill Morneau in 2020. The loss of such a high-profile figure marks a pivotal moment in Trudeau’s leadership as he faces both political and economic challenges.
