Trudeau’s closest political ally quit on him suddenly with a stunning resignation letter

On December 16th, Canadian Finance Minister Chrystia Freeland quit Justin Trudeau’s cabinet in spectacular fashion. Freeland’s resignation letter called Trudeau's leadership into question at a time when the Prime Minister could ill afford it.

Trudeau has been facing a decline in his popularity over the last few years and rumors have been circulating about the clashes between him and his finance minister over the issues the country is facing from the incoming Trump administration. 

The threat of a blanket 25% tariff on all Canadian goods entering the United States is a real possibility as Donald Trump retakes office in January 2025, and it was this problem the former finance minister's resignation letter subtly made its central focus. 

Freeland—who also served as the Deputy Prime Minister of Canada—which made her the second most powerful and important politician in the country, started off her letter to Trudeau by acknowledging that he wanted her to leave the Finance Ministry. 

“On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the cabinet. Upon reflection, I have concluded that the only honest and viable path is for me to resign from the cabinet,” Freeland wrote. 

The former financial minister then spent the rest of her resignation letter subtly trashing Trudeau and the decisions he was making, essentially claiming that his recent policies aimed at providing a tax holiday for Canadians were a personal political ploy. 

“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada. Our country today faces a grave challenge,” Freeland said as she pointed out the “aggressive economic nationalism” being pursued by Trump. 

Freeland added that Canada needed to take the threat coming from the United States seriously, which meant the country could ill afford the costly monetary policies that were being pursued so the country could face the issues a potential trade war might bring. 

We need to take that threat extremely seriously. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war,” cautioned the former finance minister in her resignation letter. 

“That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment,” Freeland added before noting that Ottawa needed to fight back against Trump’s economic nationalism.  

“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,” Freeland added. 

However, while Freeland called out Trudeau’s problematic policies, the crowning dagger of her letter appeared as if it was a veiled acknowledgment that the Liberal's nine years in leadership would end soon and that Trudeau’s policies weren't serving Canadians. 

"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," Freeland wrote. 

“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 added. 

Reuters noted that Freeland resigned just hours before she was set to present the fall economic statement update to parliament. The statement showed that the government had pushed Canada’s 2023/24 deficit to a stunning $61.9 billion CDN.

Freeland’s departure from Trudeau’s cabinet has sent shockwaves through Canada but it has also led to calls for Trudeau to resign. What will happen next has yet to be seen but it likely won’t be good for the Prime Minister. 

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