Canada’s Finance Minister Chrystia Freeland Resigns

Canada’s Deputy Prime Minister and Finance Minister Chrystia Freeland has resigned following a disagreement with Prime Minister Justin Trudeau over the country’s economic strategy. The announcement came just hours before she was scheduled to deliver the government’s annual fiscal update on Monday.

In her resignation letter, Freeland revealed a growing rift with Trudeau, stating they were “at odds about the best path forward for Canada.” The resignation follows Trudeau’s decision last week to remove Freeland as his government’s top economic advisor.

At the center of their dispute was a proposed policy to provide a C$250 ($175; £139) cheque to eligible Canadians, which Freeland opposed, calling it a “costly political gimmick” that Canada could not afford. She emphasized in her letter that Canada must “keep its fiscal powder dry” in light of economic challenges, including the looming threat of tariffs from U.S. President-elect Donald Trump.

Trump has vowed to impose a 25% tariff on Canadian imports, a move economists warn could severely impact Canada’s economy. Freeland described this as “a grave challenge” and urged the government to prepare for its potential fallout.

Freeland, a long-time ally of Trudeau within the Liberal Party, has been Canada’s finance minister since 2020, steering the nation through the economic turbulence of the COVID-19 pandemic and its aftermath. Her resignation marks the second time a finance minister has departed during Trudeau’s tenure due to policy disagreements; her predecessor, Bill Morneau, stepped down in 2020 amid a clash over spending policies and ethics concerns.

Freeland’s departure signals a major shift in Trudeau’s cabinet as the government faces mounting economic pressures.