Canadian Prime Minister Justin Trudeau faces the biggest test of his political career as Finance Minister Chrystia Freeland, long one of his most powerful and loyal ministers, announced her resignation from the cabinet on Monday. The shock move raised questions about how much longer the prime minister of nearly a decade can stay in office as his government grapples with the incoming U.S. President Donald Trump. Trudeau’s approval ratings have plummeted amid concerns about inflation and immigration. Opposition Leader Jagmeet Singh, whose ruling Liberals have relied on Singh’s party to stay in power, called for Trudeau to resign. The main opposition Conservatives called for an election.
Canadian Prime Minister Justin Trudeau was accompanied by Finance Minister Chrystia Freeland at the meeting. (AP) Freeland, who is also Canada’s deputy prime minister, said Trudeau told her Friday he no longer wanted her as finance minister and offered her another position in cabinet. But she said in her resignation letter to Trudeau that the only “honestly feasible path” was to leave the cabinet. “Over the past few weeks, you and I have found ourselves at odds over the best path forward for Canada,” Freeland said. Freeland and Trudeau disagreed over the recently announced two-month sales tax holiday and $270 checks to Canadians. Freeland said Canada, which is dealing with Trump’s threat of across-the-board tariffs of 25%, should avoid “costly political maneuvers” because it “cannot afford.” “Our country is facing serious challenges,” Freeland said in the letter. “That means today we are maintaining fiscal stability so we can be well-positioned for the tariff war that is coming.” Freeland has been named minister in charge of Canada’s relations with the United States, without a department, a Liberal official said. The official, who spoke on condition of anonymity because they were not authorized to speak publicly about the matter, said the position would be nominal and would not provide any of the tools Freeland had in previous trade talks with the United States.
President-elect Donald Trump and Canadian Prime Minister Justin Trudeau dine at Mar-a-Lago. (Getty Images via CNN Newsource) Freeland’s resignation comes as Freeland, who chaired the Cabinet Committee on United States Relations, prepares to deliver a fall economic statement and potentially announce border security measures aimed at helping Canada avoid Trump’s tariffs. The U.S president-elect has threatened to impose a 25 percent tax on all products coming into the United States from Canada and Mexico unless they curb immigration and drug traffic. The statement showed the deficit for the current fiscal year was far wider than expected, with a border security deficit of more than $1 billion. Trudeau has said he plans to lead the Liberal Party into the next election, but some party members have said they do not want him to run for a fourth term, and Freeland’s departure is a heavy blow to the Trudeau government. “The news hits me hard,” said Transport Minister Anita Anand, adding that she needed to digest the news before commenting further. Trudeau named Dominique LeBlanc as his new finance minister. LeBlanc, a longtime ally and friend of Trudeau who served as public safety minister, recently accompanied Trudeau to dinner with Trump at Mar-a-Lago. Opposition Conservative leader Pierre Poliev said the government had lost control at the worst possible time. “Justin Trudeau has lost control, but he’s still in power,” Poliev said. “All this chaos, all this division, all this weakness is happening at a time when our largest neighbor and closest ally is imposing 25% tariffs with the strong support of a newly elected Trump who knows how to identify weakness.” No Canadian prime minister has been re-elected for four terms in more than a century.
Canadian Prime Minister Justin Trudeau brings in new Finance Minister Dominic LeBlanc. (AP) A federal election must be held by October. The Liberals must rely on the support of at least one other major party in Parliament because they do not have an absolute majority themselves. An election could be called at any time if the opposition New Democratic Party (NDP) withdraws its support. “I call on Justin Trudeau to resign. He must go,” said NDP leader Jagmeet Singh. Trudeau’s Liberals need the support of the NDP to remain in power. Singh did not say whether he would express no confidence in the government but said all options were on the table. “The government of Mr. Trudeau is over,” said Yves-François Blanchet, leader of the opposition Bloc Quebecois. “He has to acknowledge that and act accordingly. The departure of his most important ally, the finance minister, means the end of this government.” In 2015, Trudeau tapped into his father’s star power to reassert Canada’s liberal identity after nearly a decade of Conservative rule. But the son of the late Prime Minister Pierre Trudeau is now in deep trouble. Canadians are frustrated over issues such as rising living costs and increased immigration as the country reels from the COVID-19 pandemic. “We have to show strength as a country,” said Ontario Premier Doug Ford. “Ottawa is in chaos right now.”
Canadian Prime Minister Justin Trudeau resigns, accompanied by Canadian Finance Minister Chrystia Freeland. (AP) Trudeau’s legacy includes opening the door to immigration. He also legalized marijuana and introduced a carbon tax aimed at combating climate change. In her resignation letter, Freeland said Canadians “know when we work for them, and they know just as well when we focus on ourselves. Inevitably, our time in government will come to an end.” Freeland’s resignation comes as Trudeau has been trying to recruit Mark Carney to join his government. Carney has served as governor of the Bank of England and the Bank of Canada. He was so revered for helping Canada avoid the worst of the global economic crisis that Britain appointed him the first foreigner to serve as governor of the Bank of England since its founding in 1694. Carney has been interested in entering politics and becoming leader of the Liberal Party. It is unclear whether Carney will agree to join Trudeau’s cabinet. “This is a bombshell,” said Nelson Wiseman, professor emeritus at the University of Toronto. Freeland was not only finance minister, she was deputy prime minister, and a few years ago she was seen as Trudeau’s successor as Liberal leader and prime minister. Wiseman said leaks from the prime minister’s office showed she was not good at communication, which put Freeland’s status in question. “There were rumors that she would serve as foreign minister again, which would have been a good choice for her, but the stab in the back from the prime minister’s office sealed her fate,” Wiseman said. Daniel Berland, a professor of political science at McGill University in Montreal, also called it a political earthquake. “This is clearly a minority government on life support, but so far the (opposition) New Democratic Party has rejected calls to stop governing. It’s hard to know whether her resignation will force the New Democratic Party to rethink its strategy.”