CANADA’S DEPUTY LEADER Chrystia Freeland quit today in a surprise move after disagreeing with Prime Minister Justin Trudeau over US President-elect Donald Trump’s tariff threats.

The resignation of Freeland, 56, marked the first open dissent against Trudeau from within his cabinet, and may threaten his hold on power as he currently lags 20 points in opinion polls behind his main rival, Conservative Pierre Poilievre.

Freeland, who also stepped down as finance minister, wrote in her resignation letter that Canada faces a “grave challenge” as Trump plans to introduce 25% tariffs on Canadian imports.

She said, in the letter address to Trudeau, that the pair had found themselves at odds about the next step in the context of the potential tariffs. She concluded that her only viable path was for her to resign.

Freeland was first elected in 2013 and joined Trudeau’s cabinet two years later when his party, the Liberals, swept to power. The former journalist held key positions such as trade, foreign and later finance minister.

She was the main negotiator during the first Trump presidency, when the US President threatened a trade war with its neighbour, and led free trade talks with the EU and the US. Freeland was also tipped as a possible successor to Trudeau. 

The US is Canada’s main trading partner, with 75% of its exports going to its southern neighbour each year.

Following Freeland coordinating a plan for Canada to respond to an incoming second Trump term, Trudeau left for Florida to convince the President-elect not to follow through with the tariffs.

Nothing indicates that the trip was a success. 

Since, Trudeau and Freeland have been at loggerheads over the tariffs, she revealed in her resignation letter today.

Things worsened recently, following a giveaway budget that saw Canadians receive a ‘sales tax holiday’ which critics said was costly and aimed at bolstering the Liberals’ sagging polling figures.

She said that she was taking the tariff threat “extremely seriously” and warned that Canada must keep its “fiscal powder dry”.

“That means eschewing costly political gimmicks, which we can ill afford,” she said, in an apparent rebuke of the recent tax rebate day.

Until now, Trudeau’s cabinet has rallied around him as he faced pockets of dissent from backbench MPs. Her resignation will be seen internally as a major issue for the party and its leadership.

Following a meeting in Ottawa today, minsters left government buildings to a league of reporters – some took the opportunity to recall their support for Trudeau, though most said nothing.

Freeland’s departure came just hours before she was scheduled to provide an update on the nation’s finances, amid reports the government would blow past Freeland’s deficit projections last spring.

Trudeau has indicated that he plans to lead the Liberals into the next election.

Some local media suggested he might step down after Freeland’s exit, but his office flatly rejected the reports as “absolutely not accurate.”

- © AFP 2024, with reporting by Muiris Ó Cearbhaill