Freeland resigns from cabinet; was at odds with Trudeau about best path forward for Canada

Chrystia Freeland

CHRYSTIA Freeland announced on Monday that she has resigned from the cabinet after Prime Minister Justin Trudeau told her he did not want her to serve as Finance Minister and offered her another position.

(Dominic LeBlanc was sworn in as the new Finance Minister later in the day.)

“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” she said in a letter to Trudeau that was posted on X.

“Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet,” Freeland, who was also the Deputy Prime Minister, said.

“To be effective, a minister must speak on behalf of the Prime Minister and with his full confidence. In making your decision, you made clear that I no longer credibly enjoy that confidence and possess the authority that comes with it,” she added.

The Globe and Mail had reported last week about tensions between Freeland and Trudeau over increased spending including the two-month GST holiday in certain items and the $250 rebate for working people earning $150,000 or less that together would cost $6.28-billion.

Freeland noted: “Our country today faces a grave challenge. The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25 per cent tariffs.”

She added: “We the threat extremely seriously. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill afford and which makes Canadians doubt that we recognize the gravity of the moment.”

Freeland said: “That means pushing back against ‘America First’ economic nationalism with a determined effort to fight for capital and investment and the jobs they bring. That means working in good faith and humility with the premiers of the provinces and territories of our great and diverse country, and building a true Team Canada response.

“I know Canadians would recognize and respect such an approach. They know when we are working for them, and they equally know when we are focused on ourselves. Inevitably, our time in government will come to an end. But how we deal with the threat our country currently faces will define us for a generation, and perhaps longer. Canada will win if we are strong, smart, and united.

“It is this conviction which has driven my strenuous efforts this fall to manage our spending in ways that will give us the flexibility we will need to meet the serious challenges presented by the United States.”

Freeland said: “I look forward to continuing to work with my colleagues as a Liberal Member of Parliament, and I am committed to running again for my seat in Toronto in the next federal election.”

 

MEANWHILE, U.S. President-elect Donald Trump in a post on Truth Social wrote, “The Great State of Canada is stunned as the Finance Minister resigns, or was fired, from her position by Governor Justin Trudeau. Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada. She will not be missed!!!”