Chrystia Freeland Resigns as Canada’s Finance Minister Amid Disputes with Trudeau Over Trump’s Tariff Threats, Economic Nationalism, and Cost-of-Living Relief Policies
Freeland Steps Down Over “Aggressive Economic Nationalism” Policy Dispute
Canada’s Finance Minister Chrystia Freeland has resigned, citing sharp disagreements with Prime Minister Justin Trudeau over how to address U.S. President-elect Donald Trump’s tariff threats.
In her resignation letter shared Monday, Freeland revealed she and Trudeau have been “at odds” over Canada’s economic response to Trump’s “aggressive economic nationalism.” The resignation comes just hours before she was scheduled to deliver an annual fiscal update in parliament.
Tariffs Spark Rift in Ottawa
Trump’s pledge to impose a 25% tariff on Canadian imports has sparked concerns about the economic fallout. Freeland stressed the need for a measured response, calling the tariffs a “grave threat” that Canada must address with unity and financial prudence.
Freeland’s departure follows Trudeau’s decision last week to seek a new top economic adviser, a move that appears to have solidified her decision.
Cost-of-Living Crisis Policies at the Heart of Dispute
Freeland and Trudeau reportedly clashed over a series of proposed policies aimed at tackling the rising cost of living. Central to the dispute was a plan to issue C$250 cheques to Canadians earning less than C$150,000 annually, a program expected to cost the government C$4.68 billion. Freeland’s office reportedly opposed the plan, labeling it as an economically risky “political gimmick.”
Another contested policy, a temporary holiday tax break on essential goods, was approved in parliament and is expected to cost C$1.6 billion in lost revenue.
Public Opinion Divided
A poll by the Angus Reid Institute revealed that 80% of Canadians view the C$250 cheques as a populist move to boost Trudeau’s sagging approval ratings. Freeland’s concerns about Canada’s growing deficit reportedly fueled her opposition to these measures.
Cabinet Reactions to Freeland’s Exit
Freeland’s resignation has drawn emotional responses from her Liberal colleagues. Transport Minister Anita Anand described Freeland as a “good friend,” adding,
“This news has hit me really hard.”
Minister for Indigenous Relations Patty Hajdu said,
“These are deeply personal decisions, and I respect her choice.”
Freeland, who also serves as deputy prime minister, confirmed she will remain a Liberal MP and plans to run in the next federal election, which must occur by October.
Trudeau Faces Mounting Challenges
Freeland’s resignation is the latest in a string of departures from Trudeau’s cabinet. Housing Minister Sean Fraser recently announced he will not seek re-election, citing family priorities.
The finance ministry is now scrambling to decide whether Monday’s economic statement will proceed as planned. Meanwhile, Canadians are left wondering how Ottawa will tackle Trump’s looming tariffs without its key economic strategist at the helm.
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