Updated Story: Freeland Resigns, Trudeau Faces Political Crisis

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Updated Story: Freeland Resigns, Trudeau Faces Political Crisis \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Canadian Prime Minister Justin Trudeau faces the biggest crisis of his nearly 10-year leadership after Finance Minister Chrystia Freeland resigned Monday. Freeland cited irreconcilable differences with Trudeau over Canada’s economic path amid U.S. President-elect Donald Trump’s tariff threats. Trudeau quickly appointed ally Dominic LeBlanc to replace Freeland, but opposition leaders, including Jagmeet Singh of the NDP, are calling for his resignation, questioning his ability to lead as Canada struggles with rising costs and immigration concerns.

Quick Looks

Freeland Resigns: Finance Minister Chrystia Freeland resigns after a policy rift with Trudeau, citing irreconcilable differences.
New Appointment: Trudeau names Dominic LeBlanc as the new finance minister, signaling a swift attempt to stabilize the government.
Economic Disagreement: Freeland opposed Trudeau’s sales tax holiday and CA$250 payouts, warning of a looming economic crisis tied to Trump’s 25% tariff threats.
Opposition Reaction: NDP leader Jagmeet Singh and Conservatives demand Trudeau’s resignation, intensifying political pressure.
Trudeau Under Siege: With his popularity at historic lows, Trudeau faces mounting calls for an early federal election.
Minority Government: Trudeau’s Liberal government depends on NDP support, which could shift amid growing dissatisfaction.
Trump’s Tariff Threats: Freeland’s exit complicates Canada’s response to U.S. President-elect Donald Trump’s plans to impose tariffs on imports.
Mark Carney Courted: Trudeau looks to recruit respected economist Mark Carney to stabilize the Cabinet and reassure Liberal supporters.

Updated Story: Trudeau in Crisis as Freeland Resigns from Cabinet

Freeland Resigns After Rift with Trudeau

Finance Minister Chrystia Freeland, one of Trudeau’s most powerful and loyal allies, resigned Monday, citing ongoing disagreements with the prime minister over Canada’s economic direction. Freeland’s departure comes at a precarious time for Trudeau’s government, which is already grappling with plummeting approval ratings amid inflation concerns and rising immigration.

Freeland revealed in her resignation letter that Trudeau informed her on Friday that she would no longer serve as finance minister and offered her an alternative role. She declined, stating that the only “honest and viable path” was to leave the Cabinet.

“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” Freeland wrote.

Trudeau Swiftly Replaces Freeland

In response to Freeland’s departure, Trudeau appointed longtime ally Dominic LeBlanc, the public safety minister and a trusted confidant, to take over the finance portfolio. LeBlanc, who recently accompanied Trudeau to a private dinner with Donald Trump at Mar-a-Lago, pledged to focus on addressing Canada’s cost-of-living crisis and finding “common ground” with the incoming U.S. administration on economic and border security issues.

“I’m very confident that we can continue to do the necessary work,” LeBlanc said after his swearing-in ceremony.

Opposition Calls for Trudeau’s Resignation

Freeland’s abrupt resignation intensified pressure on Trudeau, with opposition leaders seizing the moment to demand his departure.

Jagmeet Singh, leader of the NDP—a party whose support keeps Trudeau’s Liberals in power—called on the prime minister to resign, declaring: “He has to go.”
Conservative leader Pierre Poilievre called for an immediate election, while Bloc Québécois leader Yves-François Blanchet said Freeland’s resignation marks “the end of this government.”

Freeland’s departure strikes a major blow to Trudeau’s leadership and raises doubts about his political longevity. No Canadian prime minister in over a century has won four consecutive terms, and with a federal election due before October, Trudeau’s path forward appears uncertain.

Freeland Warns Against ‘Political Gimmicks’ as Canada Faces Tariff Threats

Freeland’s split with Trudeau stemmed from their differing approaches to Canada’s economic challenges. Freeland criticized the prime minister’s recent plans for a two-month sales tax holiday and direct CA$250 ($175) payments to citizens, calling them “costly political gimmicks” that Canada could “ill afford.”

“Our country is facing a grave challenge,” Freeland warned, referencing Trump’s threat to impose 25% tariffs on Canadian imports unless Canada tightens its border security and reduces drug trafficking.

Freeland, who previously chaired a Cabinet committee on Canada-U.S. relations, had been preparing to unveil economic measures aimed at addressing Trump’s demands while tackling Canada’s growing deficit.

A Liberal party official revealed that Freeland was offered a symbolic role as minister in charge of Canada-U.S. relations, but without the authority or tools she had wielded in previous trade negotiations.

Trudeau Under Fire from All Sides

Trudeau, who rode into office in 2015 on a wave of optimism, now faces widespread dissatisfaction among Canadians. Rising costs of living, increasing immigration, and lingering frustrations over post-pandemic policies have eroded his once-strong support.

Ontario Premier Doug Ford bluntly criticized the government, saying: “It’s chaos right now up in Ottawa.”

Trudeau’s legacy includes notable achievements like legalizing cannabis, implementing a carbon tax to address climate change, and opening Canada’s doors to immigration. However, those policies now face criticism as inflation and public discontent continue to grow.

Trudeau’s Next Moves: Mark Carney and Political Survival

Amid the fallout, Trudeau has been courting Mark Carney, the former governor of the Bank of Canada and Bank of England, to join his government. Carney, who has long been viewed as a potential Liberal Party leader, could bring credibility to Trudeau’s Cabinet at a critical time.

Political experts view Carney’s potential entry as a calculated attempt to stabilize the government. But whether Carney will accept remains unclear.

Nelson Wiseman, professor emeritus at the University of Toronto, described Freeland’s resignation as a turning point, noting her previous status as Trudeau’s presumed successor.

“Freeland was not only finance minister but also deputy prime minister,” Wiseman said. “Her resignation signals deep cracks within the Liberal government.”

Daniel Béland, a political science professor at McGill University, called the resignation a “political earthquake.” He suggested the Liberal Party’s survival may now depend on the NDP, which has so far resisted withdrawing its support.

“This is clearly a minority government on life support,” Béland said. “The question is whether this will force the NDP to rethink its strategy.”

Can Trudeau Survive?

As Trudeau insists he will lead the Liberals into the next election, Freeland’s departure leaves his leadership on shaky ground. Facing calls for resignation and growing public dissatisfaction, Trudeau must now navigate both internal divisions and an increasingly hostile opposition.

With a federal election looming, Trudeau’s ability to restore confidence and unify his party may determine whether he can hold onto power—or whether his time as prime minister is nearing its end.