Canada’s Finance Minister Chrystia Freeland resigned abruptly on Monday amid tensions with Prime Minister Justin Trudeau over how to respond to U.S. President-elect Donald Trump’s proposed 25% tariffs. The move has thrown Trudeau’s already struggling government into deeper uncertainty just months before a likely election defeat.
Budget Battles and Broken Alliances
Freeland, 56, criticized Trudeau’s push for higher spending as a 'political gimmick,' arguing it would weaken Canada’s ability to counter Trump’s tariffs. Her departure leaves Trudeau without a key ally as his Liberal Party trails the opposition Conservatives in polls. Public Safety Minister Dominic LeBlanc, a Trudeau loyalist, was swiftly named her replacement.
Deficit Shockwaves
Hours after Freeland’s exit, her fall economic update revealed a staggering C$61.9 billion (US$43.4 billion) budget deficit for 2023/24—far higher than forecast. The New Democrats, who’ve propped up Trudeau’s minority government, now demand his resignation. 'He has to go,' said NDP leader Jagmeet Singh, signaling potential collapse of parliamentary support.
What’s Next?
With Parliament adjourning until January 27, Trudeau faces mounting pressure from all sides. Conservatives warn the government is 'spiraling out of control' as Trump’s tariff threat looms. Will this crisis spark early elections? All eyes are on Ottawa. 🔥
