Stepping on the Cracks

Canadian Finance Minister Chrystia Freeland resigned Monday from Prime Minister Justin Trudeau’s cabinet, citing irreconcilable differences over fiscal policy, as the government faces declining popularity and a looming economic crisis tied to US tariff threats, the Wall Street Journal reported.

Freeland, who also served as deputy prime minister, said Trudeau informed her last week that she would no longer serve as finance minister, offering her another cabinet position instead.

She described the decision to leave as “the only honest and viable path” forward, highlighting weeks of disagreement over government spending.

Freeland criticized Trudeau’s recent policies, including a two-month sales tax holiday and $175 payments to Canadians. She called them “costly political gimmicks” at a time when Canada faces the threat of a 25 percent tariff on exports from US President-elect Donald Trump. Economists have warned such tariffs could trigger a recession in Canada.

The departure is a significant political blow for Trudeau, who has already had several senior ministers leave his cabinet, including Housing Minister Sean Fraser.

Analysts added that Freeland’s exit underscored internal divisions within the Liberal government as it grapples with rising living costs, voter dissatisfaction, and a resurgent Conservative Party, which holds a 20-point lead in recent polls.

They added that losing Freeland, widely respected for her leadership during the NAFTA renegotiations,– could further weaken Trudeau’s authority and deepen doubts about his ability to lead the party into next year’s election, the Associated Press wrote.

Trudeau, who channeled his father’s political legacy to win three consecutive terms, is now facing one of the most challenging moments of his tenure. The Liberals must rely on support from opposition parties to govern, and party members are questioning whether the prime minister should seek an unprecedented fourth term.

Trudeau has repeatedly said he would stay on as prime minister and seek reelection next year.