OTTAWA — Chrystia Freeland, Canada’s Finance Minister, has resigned in a dramatic exit that marks the first casualty of President-elect Donald Trump’s tariff wars. Freeland’s departure stems from growing differences with Prime Minister Justin Trudeau over economic policy, particularly concerning Trump’s tariff threats.
Freeland Resigns, Cites Economic Policy Differences
In a resignation letter shared Monday, Freeland expressed her concern that how Canada handles Trump’s economic nationalism would define the nation’s future. She criticized Trudeau’s approach to the tariff threat, accusing him of tying her hands on spending issues that could have fortified Canada’s position in a potential trade war.
“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 percent tariffs,” Freeland wrote.
Freeland, who had served as deputy prime minister and finance minister, was a prominent figure during the NAFTA renegotiations under the Trump administration. However, her absence from Trudeau’s recent meeting with Trump in Mar-a-Lago raised eyebrows, especially given her role in past trade talks.
Freeland’s Criticism of Trump’s Trade Policies
Freeland’s resignation underscores the tense relationship between Canada and Trump’s administration. She had been vocal in her opposition to Trump’s protectionist policies, particularly during the contentious NAFTA negotiations. In 2018, Trump criticized her approach, calling her “not someone we like very much,” which added to the animosity between them.
Two years ago, Freeland took to social media to criticize Jared Kushner’s memoir, which criticized her negotiating style. In her response, she did not hesitate to call Trump a “bully,” reinforcing the deep divisions between the two leaders.
Trudeau Faces Domestic and International Pressure
Freeland’s departure adds to the mounting pressure on Prime Minister Trudeau, who now faces internal calls for his resignation amid public dissatisfaction with his handling of the economy. Trudeau had pushed for a temporary holiday tax break to address working-class hardships, but Freeland felt constrained by Trudeau’s focus on other economic initiatives, such as increasing spending on border security to appease Trump.
Freeland’s resignation also raises concerns about Canada’s economic future. Trump’s threat of 25 percent tariffs on Canadian goods if Canada doesn’t curb the flow of illicit drugs and migrants across the border looms large.
Dominic LeBlanc Takes Over as Finance Minister
Dominic LeBlanc, the current Minister of Public Safety, has been appointed to take over Freeland’s position. LeBlanc, a close ally of Trudeau, moved swiftly to reassure Canadians by highlighting his ongoing discussions with Trump’s team about border security and economic issues.
“I’ve continued to have discussions with incoming Secretary Lutnick, for example, around border security,” LeBlanc said, referencing Trump’s nominee for Commerce Secretary, Howard Lutnick.
LeBlanc’s appointment aims to stabilize the government amid growing political unrest.
Freeland’s Future in Politics
Despite her resignation, Freeland’s political career is far from over. The former journalist, who chronicled the fall of the Soviet Union, will remain an MP in the Canadian Parliament, leaving open the possibility of one day challenging Trudeau for leadership.
Freeland’s resignation and the ongoing tension with the incoming Trump administration set the stage for Canada’s political landscape in the coming years, especially with the tariff war hanging in the balance.
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