The abrupt resignation of Chrystia FreelandDeputy Prime Minister and Minister of Finance of Canada, has generated a crisis significant policy for the prime minister’s government Justin Trudeau. The departure of Freeland, known for her prominent role in managing the relationship with Donald Trump’s first administration in the United States, occurs in a context of economic threats y tensions internal in the Liberal Party.
In her resignation letter, Freeland accused Trudeau of focusing on “expensive political strategies” instead of addressing the serious threats facing the country, including President-elect Trump’s warning of imposing 25% tariffs on Canadian and Mexican goods if anti-corruption measures are not strengthened. irregular migration and the drug trafficking.
“Canadians know when we are working for them, and they also know when we are focused on ourselves,” Freeland noted in the letter. The now former minister rejected the economic measures promoted by Trudeau, such as a temporary exemption from sales tax and the delivery of checks to taxpayers, arguing that these decisions They would increase the government deficit and weaken Canada’s ability to confront tariff threats.
Freeland, who was leading a transition team for the new Trump administration, submitted her resignation just before the release of the government’s interim budget, which projects the deficit will rise to 61.9 billion Canadian dollars ($43.4 billion). A figure that exceeds the limits previously established by the former minister.
Freeland’s resignation unleashed a wave of criticism and calls for his resignation directed at Trudeau from members of his own party. Among the most critical voices is Sean FraserMinister of Housing and considered a rising figure within the Liberal Party, who also announced his resignation on Monday, deepening the crisis.
Four other cabinet ministers have said in recent weeks that they will not run in the next election, underscoring the growing discontent within the liberal ranks. In addition, the leader of the Conservative Party, Pierre Poilievre, took advantage of the moment to intensify pressure on Trudeau. During a conference in Ottawa, Poilievre read excerpts from Freeland’s resignation letter, calling the Trudeau government an “out of control” administration and calling for an early federal election.
In this scenario, Trudeau faces three possible ways to deal with increasing pressures. First, you could choose resign as leader of the Liberal Partywhich would begin an internal election process to replace him. In this case, Freeland, despite her resignation, could run as one of the main contenders, along with figures such as Foreign Minister Mélanie Joly.
The second option would be for Trudeau to call early electionssomething he has repeatedly suggested, although this strategy carries risks, since his party is more than 20 percentage points behind the Conservative Party in the polls.
Finally, Trudeau could ignore the demands of his own party and the opposition, staying in power until the deadline October to call elections. However, this option could become complicated if the government’s interim budget, known as the economic statement, does not gain the necessary support in Parliament, where the Liberals do not have a majority and depend on alliances with opposition parties.
The domestic political crisis comes as Canada faces external economic pressures. The president-elect of the United States, Donald Trump, has warned that he will impose 25% tariffs on goods from Canada and Mexico unless both countries implement stricter measures against the flow of migrants and drugs to the United States.
In response, the Trudeau government allocated a total of 1.3 billion Canadian dollars to strengthen border security over the next six years, of which C$600 million represents a recent increase in spending. However, the interim budget does not detail how these investments will be implemented, which has generated criticism for the lack of specificity in measures in the face of an imminent threat.
The resignation of Freeland, who previously led the renegotiation of the USMCA during the first Trump administration, leaves the Trudeau government without one of its most experienced figures to face the challenges of a new mandate for the Republican president. Freeland warned in her letter that how Canada handles this situation “will define the country for a generation, and perhaps longer.”
Canada’s political and economic future is marked by uncertainty, as Trudeau attempts to maintain control of his government amid growing internal and external pressures.
