Canadian finance minister slaps Trudeau with resignation letter

Canadian Finance Minister Chrystia Freeland resigned from Justin Trudeau's cabinet on Monday, delivering a scathing letter that criticized the prime minister for his handling of economic policy and his focus on “costly political gimmicks” amid looming US tariff threats.

In her resignation letter, Freeland stated that she and Trudeau had found themselves at odds over the best path forward for Canada, particularly in light of the incoming administration in the United States under President-elect Donald Trump. Trump has threatened to impose a 25% tariff on all products entering the US from Canada and Mexico.

”We need to take that threat extremely seriously,” Freeland wrote. “That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment.”

The letter highlighted Freeland's concerns about the government’s recent policies, including Trudeau’s proposal for a two-month sales tax holiday and $175 checks for roughly half of Canadians, which she deemed unaffordable measures.

”This is a moment of grave challenge,” Freeland wrote. “Canadians know when we are working for them, and they equally know when we are focused on ourselves.”

Freeland, who also served as deputy prime minister, was scheduled to deliver the fall economic statement on Monday afternoon. Instead, Karina Gould, Leader of the Government in the House of Commons, presented the document revealing that Canada's fiscal deficit for the year came in at $43.45 billion – about 50% more than projected.

Trudeau appointed Dominic LeBlanc, a longtime ally and current public safety minister, to replace Freeland. LeBlanc was sworn in later that day and emphasized the government's focus on addressing the cost of living and finding common ground with Trump.

”It hasn’t been an easy day,” Trudeau told a room of party supporters, but he did not provide details on his plans moving forward.

Freeland, who has served in various roles in the Liberal government since 2013, expressed gratitude for the opportunity to serve and stated that she would continue to work with her colleagues as a Liberal Member of Parliament. She also announced her intention to run again for her seat in Toronto in the next federal election, which must be held by October 2025.

The resignation comes at a critical time for Trudeau, whose popularity has waned due to concerns over inflation and immigration. The prime minister faces growing calls to resign from both opposition parties and some members of his own party, who say they do not want him to run for a fourth term.