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Canadian Prime Minister Justin Trudeau’s government has plunged into turmoil following the sudden resignation of Finance Minister Chrystia Freeland. Her abrupt departure has not only shaken Trudeau’s already fragile minority government but has also sparked calls for his resignation from within his own Liberal Party.
The crisis unfolded on a chaotic Monday. By the end of the day, a new finance minister had been appointed, but Trudeau was still reeling from the political fallout. Addressing party donors at an event in Ottawa, Trudeau acknowledged the tough day but avoided addressing the controversy directly, saying, “It’s obviously been an eventful day. It has not been an easy day.”
Freeland's Scathing Exit
Freeland, a key ally of Trudeau and a long-serving member of his cabinet, submitted a strongly worded resignation letter on the same day she was supposed to deliver a major economic update. In her letter, Freeland criticized Trudeau’s approach to dealing with U.S. President-elect Donald Trump’s aggressive economic policies. She accused him of choosing “costly political gimmicks” over taking concrete measures to address the serious economic threat posed by Trump.
The tension stems from Trump’s plan to impose a 25% tariff on Canadian goods unless Canada takes steps to secure its border. Economists have warned that such tariffs could cause significant harm to Canada’s economy.
Freeland, who also served as Deputy Prime Minister, expressed frustration with Trudeau’s leadership. She revealed that Trudeau had told her last week he no longer wanted her as the government’s chief economic advisor. This was the breaking point for Freeland, leading to her dramatic exit.
Trump, known for his blunt responses, took to social media to react to Freeland’s departure. He described her behavior as “toxic” and claimed it was “not conducive to making deals that benefit the citizens of Canada.”
Political Fallout and Mounting Pressure
Freeland’s resignation sent shockwaves through Ottawa, leaving Trudeau’s government scrambling to fill the leadership gap and finalize the delayed economic update. Political analysts described the situation as chaotic, with Trudeau’s administration appearing weakened and disoriented.
To make matters worse, Trudeau’s Liberal Party suffered another blow on Monday when they lost a crucial by-election in the Cloverdale-Langley City constituency in British Columbia. This marks the Liberals’ third by-election loss this year, further adding to their struggles.
Chris Sands, Director of the Wilson Center’s Canada Institute, described the crisis as a moment of deep uncertainty for Trudeau. He noted that many of Trudeau’s most talented ministers have already left, leaving him increasingly isolated. Sands also pointed out that Trump’s recent electoral win has caused divisions among U.S. allies, including Canada.
“Do you push back against Trump’s policies, or do you try to negotiate and avoid conflict?” Sands asked, highlighting the key dilemma facing Canadian leadership.
Trudeau’s approach has been conciliatory so far. Last month, he even traveled to Trump’s Mar-a-Lago estate in Florida to meet with the president-elect. In contrast, Freeland reportedly favored a more confrontational stance, similar to the position adopted by Mexican President Claudia Sheinbaum, who has been vocal about resisting Trump’s economic nationalism.
Growing Calls for Trudeau to Resign
The fallout from Freeland’s resignation has only amplified calls for Trudeau to step down, both from within his party and from opposition leaders. Canada’s three main opposition leaders have demanded Trudeau’s resignation, with Pierre Poilievre, leader of the Conservative Party, calling for an immediate federal election.
“Everything is spiraling out of control. We simply cannot go on like this,” Poilievre declared.
Public dissatisfaction with Trudeau has been rising for months. A recent poll tracker shows his approval rating has fallen from 63% when he first took office to just 28% as of June this year. Polls also suggest that if an election were held today, the Conservatives would likely win by a significant margin.
Within the Liberal Party, discontent has been growing. According to CBC, at least seven Liberal Members of Parliament (MPs) have openly urged Trudeau to step aside to help the party recover before the next federal election, which is scheduled for October at the latest.
Trudeau’s Response and Next Steps
Despite the mounting pressure, Trudeau remains defiant. At the Ottawa fundraiser, he avoided answering reporters’ questions but told the crowd he was “damn proud” of his government’s accomplishments.
“Working for Canadian values is at the core of what makes us Liberals. That’s why we show up here, even on the toughest days as a party,” Trudeau said.
Trudeau has faced previous calls to step down but has consistently stated his intention to lead the Liberals into the next federal election. Whether he can weather this latest crisis, however, remains uncertain.
Provinces and Territories React
Meanwhile, Canada’s provincial and territorial leaders are scrambling to respond to Trump’s tariff threat. On Monday, premiers from across the country met in Toronto to discuss strategies to counter the economic risks.
Ontario Premier Doug Ford criticized the situation in Ottawa, calling it “chaos.” He assured Canadians that provincial leaders would work together to project stability and protect the economy.
“We’ll make sure the world knows there is stability and certainty here in Canada,” Ford said.
A Tough Road Ahead
Freeland’s resignation marks a turning point for Trudeau’s leadership. Her exit, combined with growing opposition and internal dissatisfaction, leaves Trudeau’s government vulnerable. With Trump’s return to power just months away and Canada’s economy on edge, Trudeau faces an uphill battle to regain public trust and secure his party’s future.
