In her resignation letter, Freeland said Canada must prepare capital to counter Donald Trump’s threat of sweeping tariffs.
Reversal News Desk,
Canadian Finance Minister Chrystia Freeland has resigned amid a disagreement with Prime Minister Justin Trudeau.
Freeland announced her resignation in a letter to Trudeau hours before the annual budget was to be presented in parliament on Monday, the BBC reported.
In the letter, she outlined her disagreements with Trudeau on how to move Canada forward. She even hinted that Canada was facing serious challenges due to Trump’s “aggressive economic nationalism.”
Trudeau told Freeland last week that he no longer wanted her as the government’s top economic adviser. Freeland said that is why she decided to resign.
The BBC wrote that the move could push Trudeau’s shaky minority government to the brink.
Polls show that the Liberal leader’s approval rating has fallen to 28 percent this year from 63 percent in June.
Meanwhile, five Liberal Party MPs have publicly called for Trudeau to resign after Freeland resigned on Monday.
Economists have warned that Freeland’s resignation will have a negative impact on Canada’s economy.
Within hours of Freeland’s announcement, Public Safety Minister Dominic LeBlanc, a close childhood friend of the prime minister and one of his most trusted allies, was sworn in as the new finance minister.
Trudeau was present at the swearing-in ceremony. It was his first public appearance since Freeland’s announcement, but he did not make a statement.
Neither his office nor the finance department responded to BBC requests for comment.
In her resignation letter, Freeland said Canada needed to be prepared to respond to the threat of massive tariffs from newly elected US President Donald Trump.
She added that this meant “avoiding costly political gimmicks” that Canada could not afford.
Earlier, US President-elect Donald Trump threatened to impose a 25 per cent tariff on all goods imported from Canada on his first day in office. Trudeau quickly flew to the US after the threat. He met with Trump.
Freeland described Trump’s announcement as a “threat” and said Canada should take the matter “very seriously”.
He said that we must stand up to US economic nationalism and work together to respond to these tariff threats.
Freeland and Trudeau also disagreed on several proposed policies to address the country’s cost of living crisis.
These include a 250 Canadian dollar check that the government wanted to give to every Canadian earning less than 150,000 Canadian dollars annually.
Another is a temporary tax break on essential goods during the holidays.
Freeland’s office was concerned about the implementation of the two policies. She said the move would be “economically unwise” at a time when the country’s deficit is growing.
A poll by the Angus Reid Institute found that four in five Canadians saw the check as a political move to disillusion the public, as Trudeau’s popularity has fallen.
In response to Freeland’s resignation, Pierre Poilivre, leader of the opposition Conservative Party of Canada, called for a federal election as soon as possible.
“Everything is spinning out of control. We can’t let it go on like this,” Poilivre said.
NDP leader Jagmeet Singh also called for Trudeau to resign on Monday.
Chrystia Freeland was the first female finance minister in Canadian history. She was long known as a close ally of Trudeau in the Liberal Party. Trudeau appointed her finance minister in 2020.
“I am very surprised to hear the news,” said Transport Minister Anita Anand, describing Freeland as a “good friend.”
The Business Council of Canada described Freeland’s resignation in a statement as “deeply concerning.”
Freeland said she intends to remain a Liberal member of Parliament even though she is stepping down as finance minister. She has also expressed her intention to run for office in the upcoming election.
