Chrystia Freeland Resigns from Trudeau's Cabinet

Previously referred to as the "Minister of Everything," the Prime Minister's second-in-command has expressed that she no longer shares his views on the most effective path ahead.

Chrystia Freeland Resigns from Trudeau's Cabinet
OTTAWA — Canadian Prime Minister Justin Trudeau has lost his top minister.

Chrystia Freeland, the deputy prime minister and finance minister, handed in her resignation just hours before she was scheduled to deliver a significant speech addressing the country's finances and outlining the Liberal government's fiscal strategy as it approaches a critical election year.

In a letter to Trudeau, Freeland disclosed an ongoing disagreement with the prime minister that has persisted since the fall. "For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada," she stated.

No other member of Trudeau's Cabinet held the same international stature as Freeland, who built a vast network of business and political contacts over her 30 years in journalism. Trudeau brought Freeland into his cabinet in 2013, where she served as international trade minister and foreign minister before assuming the finance role in 2020. She played a crucial role in Canada’s renegotiation of NAFTA during Trump’s first term.

More recently, following Russia's full-scale invasion of Ukraine in 2022, Freeland, who has Ukrainian-Canadian heritage, emerged as a prominent global advocate for Kyiv.

Freeland noted in her letter that Trudeau planned to move her to a different portfolio, which she interpreted as a sign of lost confidence. "Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet," she wrote.

This development adds to the precariousness of Trudeau’s position. His housing minister, Sean Fraser, also announced Monday that he would not seek re-election, marking another loss for the PM’s inner circle.

Although Freeland, once viewed as Trudeau's potential successor, has resigned from her cabinet position, she has confirmed her intention to run for another term in Parliament.

In her letter, she forcefully advocated for fiscal responsibility in light of President-elect Donald Trump’s warning of 25 percent tariffs on Canadian imports. "We need to take the threat extremely seriously. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war," she emphasized.

Freeland criticized the government's temporary suspension of the federal sales tax on groceries, toys, diapers, and some alcohol until February, describing it as a "holiday" intended to alleviate the cost of living, with the Parliamentary Budget Officer estimating the cost at a minimum of C$1.5 billion.

She argued that fiscal discipline "means eschewing costly political gimmicks," adding that those gimmicks can make Canadians question whether their leaders recognize the seriousness of the current situation.

Freeland also urged Ottawa to collaborate "in good faith and humility" with the provinces on a "true Team Canada response" to Trump's threats.

Trudeau's party has been trailing the rival Conservatives by significant margins in polls, and his personal popularity among voters has waned. The progressive New Democratic Party ended its governing deal in September, leaving the Liberals without dependable allies in Parliament.

While Trudeau has repeatedly stated his intention to lead the party into the next election, Freeland's resignation could intensify speculation about his future leadership.

Canadians, Freeland wrote, are aware of internal conflicts and "know when we are working for them, and they equally know when we are focused on ourselves."

Ian Smith contributed to this report for TROIB News