Prime Minister Justin Trudeau commented for the first time on the resignation of Chrystia Freeland on Jan. 6, saying he had hoped she would have remained as his deputy after removing her from the finance portfolio.
Trudeau made the comments as he was announcing his plan to resign as Liberal Party leader and prime minister after a new leader is chosen.
“Chrystia has been by my side for close to 10 years now,” Trudeau said speaking outside his Rideau Cottage residence in Ottawa. “She has been an incredible political partner through just about everything we have done as a government and as a party over the past decade.”
The prime minister added he had “really hoped” Freeland would have continued as deputy prime minister and taken on “one of the most important files that not just this government, but this country is facing.”
In her resignation letter to Trudeau that she made public, Freeland said she was being removed from finance and she accused the prime minister of using “costly political gimmicks” at a time when Canada should be bracing for a trade war. U.S. President-elect Donald Trump has threatened to impose a 25 percent tariff on Canada if border security is not improved.
Freeland mentioned having been “at odds” with Trudeau in the past weeks over how to manage the country’s finances.
Rift
Trudeau previously chose to stay as leader after several byelection losses last year and while facing dismal polling numbers.Tensions between Trudeau and Freeland started emerging publicly after the Liberals lost a stronghold riding to the Tories in a Toronto byelection in June 2024.
A few days after the surprise loss, Freeland hosted some members of the Toronto Liberal caucus in her backyard to discuss the matter.
Following this, leaks from the Prime Minister’s Office appeared in The Globe and Mail, with senior officials saying Freeland had not been effective selling the government’s economic message.
There was also speculation that Trudeau was trying to recruit former central banker Mark Carney to his government. At the time, Trudeau had confirmed trying to get Carney into federal politics “for years.”
Amid the rumours in July, Trudeau said he had “full confidence in [Freeland’s] abilities,” while Freeland said she had the “confidence that I need to do my job effectively.”
With Trudeau planning to resign in the next few months, the Liberal leadership race will soon get underway. No contenders have publicly come forward yet, but Freeland is expected to make a run. She said in her resignation letter she intends to defend her seat in the next election.
Other candidates from within cabinet that have been mentioned as potential contenders include Foreign Affairs Minister Mélanie Joly, who recently did a soft campaign launch in the New York Times, and Dominic LeBlanc, who recently replaced Freeland as finance minister. Industry Minister François-Philippe Champagne and Transport Minister Anita Anand are also considered contenders.
Outside government, Carney could also throw his hat in the race, as could former B.C. premier Christy Clark.
The Liberal Party will hold a special caucus meeting on Jan. 8 to discuss the next steps. Parliament is being suspended until March 24, after which the party should have a new leader.
All opposition parties have vowed to vote non-confidence in the government and critical votes will take place once the new parliamentary session starts. If the opposition follows through, there could be a spring election with a new Liberal Party leader campaigning.
