Canada's Finance Minister Chrystia Freeland Resigns Amid Policy Differences with PM Trudeau
December 16, 2024
Canada's finance minister Chrystia Freeland resigns ahead of fiscal update, citing differences with PM Trudeau over economic strategy and need to prepare for potential US tariffs.
Canada’s finance minister Chrystia Freeland has resigned from her post, hours before she was scheduled to deliver an annual government fiscal update.
She announced her resignation in a letter to Prime Minister Justin Trudeau on Monday, in which she said the two have been “at odds about the best path forward for Canada.”
Freeland said the decision comes after Trudeau informed her last week that he no longer wanted her to be his government’s top economic advisor.
In recent days, the two have reportedly been in a dispute over a policy that would have delivered a C$250 ($175; £139) cheque to every eligible Canadian.
In her publicly-shared resignation letter, Freeland said Canada needs to keep its “fiscal powder dry” to deal with the threat of sweeping tariffs from US President-elect Donald Trump.
She added this means “eschewing costly political gimmicks” that Canada cannot afford.
Trump has promised to impose a levy of 25% on imported Canadian goods, which economists have warned would significantly hurt Canada’s economy. In her letter, Freeland called this threat “a grave challenge”.
“We need to take that threat extremely seriously,” she said.
Freeland, who also holds the position of deputy prime minister, has long been one of Trudeau’s closest allies within his Liberal party. She has held the key role of Canada’s finance minister since 2020, helping to lead the country through the pandemic and its aftermath.
She replaced former Finance Minister Bill Morneau, who also resigned from his post amid a dispute with Trudeau over government spending policies, as well as conflict-of-interest allegations he faced involving a youth charity.
It is unclear if the fall economic statement will be delivered on Monday in light of Freeland’s resignation. A government official told Reuters news agency that the finance ministry is determining next steps.
Freeland said she intends to stay on as a Liberal member of parliament, and that she will run again in Canada’s upcoming election, which is must be held on or before October. (BBC News)
