Deputy Prime Minister and Finance Minister Chrystia Freeland has resigned from the Liberal cabinet.
“Upon reflection, I have concluded that the only honest and viable path for me is to resign from the Cabinet,” Freeland wrote in the letter, which she published on social media.
Freeland said a minister must have the “full confidence” of the prime minister to speak on his behalf and the decision to remove her from finance makes it “clear that I no longer credibly enjoy that confidence.”
Freeland was due to deliver her Fall Economic Statement later on Dec. 16, which provides an update on the country’s finances. She had established fiscal guardrails in her Fall Economic Statement last year, including maintaining the deficit below $40.1 billion.
Freeland refused to comment on the size of the deficit last week. She said in her letter that she and the prime minister have been “at odds” over the past number of weeks about the “best path forward” for the country.
Facing the threat of broad 25 percent tariffs from U.S. President-elect Donald Trump’s administration, Freeland said it’s time to keep “our fiscal powder dry” to better respond to a potential tariff war.
“That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment,” she wrote.
Freeland did not elaborate on which economic policy she disagrees with, but in recent weeks Trudeau promised a GST holiday on certain goods and $250 cheques for working Canadians.
The GST holiday was adopted by Parliament last week with support from the NDP. The New Democrats objected to sending cheques because seniors and people with disabilities were being left out.
Freeland said her government will be defined “for a generation” by how it responds to the tariff threat. “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,” she said.
Freeland said she will keep her House of Commons seat and that she intends to run in the next election.
Few ministers commented on Freeland’s resignation on their way to the weekly cabinet meeting on Monday.
“This news has hit me really hard,” said Treasury Board President Anita Anand, adding that Freeland is a “good friend” whom she has closely worked with.
Indigenous Services Minister Patty Hajdu said she respects Freeland for making a “difficult and deeply personal” decision.
Freeland’s announcement came the same day that Housing Minister Sean Fraser said he was stepping down and not running again to be closer to his family in Nova Scotia.
The loss of two senior ministers in the Liberal cabinet on Dec. 16 comes shortly after Randy Boissonnault was removed to clear allegations made against him. Boissonnault, who was employment minister, has faced scrutiny over his past business dealings and his shifting claims around his indigenous heritage.
Other ministers to leave during the summer include Seamus O'Regan and Pablo Rodriguez. Some other ministers have also said they will not be running in the next election, including National Revenue Minister Marie-Claude Bibeau, Sports Minister Carla Qualthrough, and Filomena Tassi, the minister responsible for the Federal Economic Development Agency for Southern Ontario.
