Freeland resigns as Canada’s Deputy PM over Tariff Dispute with Trudeau

Deputy Prime Minister Chrystia Freeland announced her resignation on Monday, citing irreconcilable differences with Prime Minister Justin Trudeau over how Canada should respond to U.S. President-elect Donald Trump’s planned 25% tariffs on Canadian imports.

“Our country today faces a grave challenge,” Freeland stated in her resignation letter, shared on X. She highlighted the growing tension with Trudeau, saying, “For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada.”

Freeland, who also served as finance minister, has been a prominent figure in Canadian politics since her election to Parliament in 2013. After joining Trudeau’s cabinet during the Liberal Party’s rise to power in 2015, she held key portfolios, including foreign affairs and trade, where she played a pivotal role in negotiating free trade agreements with the EU and the United States.

However, Freeland revealed that Trudeau intended to reassign her to a new role, prompting her decision to step down. “I have concluded that the only honest and viable path is for me to resign from the cabinet,” she wrote.

In her role as finance minister, Freeland had urged the government to prepare for a potential trade conflict, stressing the importance of fiscal restraint in light of Trump’s tariff threats. “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 make Canadians doubt that we recognize the gravity of the moment,” she said.

The United States, which accounts for 75% of Canada’s exports, remains its largest trading partner, making the prospect of tariffs a significant economic threat. Freeland’s departure leaves Trudeau’s government at a critical juncture, as it grapples with how to navigate escalating tensions with the incoming U.S. administration.