Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, dropped her resignation on Monday (December 16) amid escalating tensions with Prime Minister Justin Trudeau over the looming threat of U.S. President-elect Donald Trump’s “America First” economic nationalism.
Freeland’s decision came just hours before she was to unveil Canada’s first economic plan in response to the shifting political landscape in Washington.
“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” Freeland wrote in her letter to the prime minister. “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% tariffs.
“We need to take that threat extremely seriously,” she added.
Is Trudeau’s political future at risk?
Freeland’s announcement has sent shockwaves through the country and echoes concern for Trudeau as he is left without a crucial cabinet ally, fueling speculation about his political future.
Meanwhile, several media reports cited analysts weighing in on Freeland’s resignation letter. Given her history as both foreign affairs minister and a prominent journalist, many in Canada are seeing her as a potential successor to Trudeau.
In her resignation letter, Freeland warned Trudeau that “costly political gimmicks” must be eliminated as it risks causing Canadians to question whether the government truly grasps the “gravity of the moment.”
“That means pushing back against ‘America First’ economic nationalism with a determined effort to fight for capital and investment and the jobs they bring. 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.”
Impact on Canada-U.S. relation
The move comes as relations between Canada and the U.S. face serious strain, majorly after Trump vowed to impose a 25% tariff on all Canadian goods and services. Since winning the election, Trump spoke largely on his tariffs plans to be put into effect on the first day of his administration unless Canada, along with Mexico, stem the flow of illegal immigrants and drugs across the border.
