EDITOR’S NOTE: This article originally appeared on The Trillium, a Village Media website devoted to covering provincial politics at Queen’s Park.
Finance Minister Chrystia Freeland resigned from cabinet on the same day she was meant to table the Liberal government’s fall economic statement, sparking renewed calls for Prime Minister Justin Trudeau to resign.
In a letter posted to social media Monday morning, Freeland said that Trudeau offered her another cabinet role, saying he no longer wanted Freeland as finance minister.
“Upon reflection, I have concluded that the only honest and viable path is for me to resign from the cabinet,” she wrote.
“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.”
Recent news reports have said the prime minister has been trying to recruit former Bank of Canada governor Mark Carney to cabinet.
But on Monday afternoon, it was Government House Leader Karina Gould who tabled the economic update to parliament, without the customary speech from the minister of finance.
The Liberals’ financial update said Canada is bracing for a $61.9 billion deficit for this fiscal year, more than $20 billion higher than Freeland’s previous deficit target in the spring budget.
Senior government officials confirmed this deficit does not take into account the new two-month GST holiday, which took effect on Saturday and wraps in February.
The measure, which is among many reported sticking points that led to Freeland’s bombshell resignation announcement, is expected to cost Ottawa $1.6 billion in 2024-25.
In her resignation letter, Freeland warned against “costly political gimmicks” amid a potential tariff war.
“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” she wrote.
There has also reportedly been tension between Freeland and the Prime Minister’s Office over the recently announced Working Canadians Rebate offering Canadians $250 in cash. The idea originated from the Prime Minister’s Office but its future has been uncertain because it does not have the support of an opposition party, which it would need to pass.
Freeland was first elected MP for Toronto Centre in 2013. She was re-elected three times in the newer riding of University–Rosedale, holding numerous positions under the Trudeau government, including the trade, foreign affairs and intergovernmental affairs files. She has been Trudeau’s deputy since 2019.
Freeland will remain a Liberal MP and said she plans on running in the next election.
More calls to resign
Conservative Party Leader Pierre Poilievre called on the government to allow an immediate vote on the fall economic statement so that the government could be toppled, triggering an election.
He said that Freeland’s departure shows the government is “spiralling out of control…at the worst possible time.”
“Freeland has been Mr. Trudeau’s most trusted minister now for a decade, for nine years. She knows him better than anyone and she knows that he's out of control.”
Meanwhile NDP Leader Jagmeet Singh called on the prime minister to resign, adding that “all options are on the table.” He did not specify whether that meant supporting the CPC on a vote of non-confidence.
The fast-moving chain of events also renewed pre-existing tensions within the Liberal ranks, with some backbencher MPs renewing their calls for the prime minister to step down.
At least two Liberal MPs published a letter of their own to social media saying it’s “unfortunate” that Trudeau declined to step down in October when first approached by caucus members.
“Today, I publicly reiterate my request that the prime minister step down and initiate a leadership process to take our country in a new direction,” MP Chad Collins wrote.
Cabinet ministers appeared flustered and tight-lipped after a morning Monday meeting. Most did not stop to answer reporter questions and those that did didn’t say much.
Just the latest lost cabinet minister
Freeland is not the first finance minister the prime minister has lost in recent years, nor the only woman to leave cabinet under a cloud of controversy.
Her predecessor, Bill Morneau, who held the job during Trump’s first presidency, left cabinet in 2020 amid reports that he and Trudeau disagreed about the need for fiscal discipline. That came one year after Trudeau lost Jody Wilson-Raybould and Jane Philpott over the SNC-Lavalin scandal and its handling, respectively.
On Monday, shortly before Freeland announced her resignation, Housing Minister Sean Fraser told reporters that he will not be running for re-election to spend more time with his family.
“You blink and you miss it, so I’m going to spend more time with the people I love most,” Fraser said.
Fraser had nothing but good things to say about Freeland, noting that “it’s very difficult” to assess what the change could mean for the government.
“I found her to be professional, supportive of me as a member of parliament, and I consider her a friend, and that friendship will continue long after my time in politics,” he said.
Freeland speaks with the premiers
Canada’s premiers also met Monday to discuss the country’s strategy on trade tensions with the U.S., and Ontario Premier Doug Ford, the current chair of the Council of the Federation, said he took a call from Freeland during the meeting and put her on speakerphone with the group.
“It's chaos right now up in Ottawa,” said Ford.
He and several other premiers said that they would provide the stability the country needs as it handles the threat of U.S. tariffs.
Many of the premiers said they’d personally had a good relationship with Freeland and thanked her for her leadership on trade issues.
—With files from Alan S. Hale
More to come. This is a developing news story.
