Prime Minister Justin Trudeau's government is reeling as he loses top cabinet ministers, including Finance Minister Chrystia Freeland who was set to release a key economic update on Monday.
Freeland made a surprise declaration she's making her exit from cabinet because the prime minister lost faith in her, after she fought back against some of his policy decisions and he wanted to assign her to a new role.
"For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada," Freeland said in her resignation letter to Trudeau, which she posted to social media on Monday morning.
She said the country faces a "grave challenge" with the incoming Donald Trump administration and its threat of 25 per cent tariffs.
"We need to take that threat extremely seriously. That means keeping our fiscal powder dry, so we have the reserves we may need for a coming 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."
See my letter to the Prime Minister below // Veuillez trouver ma lettre au Premier ministre ci-dessous pic.twitter.com/NMMMcXUh7A
— Chrystia Freeland (@cafreeland) December 16, 2024
Conservative Leader Pierre Poilievre is set to speak to reporters in Ottawa Monday afternoon. NDP Leader Jagmeet Singh and Bloc Québécois Leader Yves-François Blanchet are also scheduled to speak with the media.
In a statement, Singh said Freeland's resignation shows how members of the Liberal government are "obsessed with infighting and ignoring the urgent challenges everyday Canadians are coping with."
"While the Liberals fight with each other, I believe we should be fighting for Canadian jobs at risk from Donald Trump’s tariffs. While Trudeau obsesses over his own drama, I believe we should be focused on the cost of homes and groceries that are burning up people’s paycheques and dimming hope," he said.
Freeland's news came just as she was set to deliver the government's fall economic statement in the wake of Trump's election, and on the heels of a government decision to grant consumers a temporary tax holiday on GST.
The surprise move has thrown into question whether that fiscal update will even go ahead as planned.
Freeland's bombshell announcement also landed just as Housing Minister Sean Fraser was holding his own news conference to announce he will not seek re-election, citing a need to be closer to his family.
Rumours of a cabinet shuffle have been swirling in Ottawa after several cabinet ministers announced they won't be running in the next campaign, but this major shock to the system ensures the prime minister will have to act soon to shore up his front bench.
Cabinet ministers were terse reacting to the news but expressed confidence in the prime minister and said they will stand by the coming fall fiscal update.
Treasury Board President Anita Anand told reporters outside the cabinet room Monday that Freeland is a good friend to her and that "this news has hit me really hard."
Labour Minister Steven MacKinnon said he regrets Freeland's departure.
“This government remains very strong with a number of very capable ministers and the prime minister,” he said.
Trudeau's Liberals have trailed behind Pierre Poilievre's Conservative party for more than a year now as an affordability crisis grips the nation.
That's put the Trudeau government consistently on its heels, and on track to lose power in the next election — which must happen before next October — unless something changes to improve his party's fortunes.
Fraser is seen internally as a good communicator and a top performer in cabinet — his name has even been floated at times in speculation as someone who could one day replace Trudeau.
Fraser held several parliamentary secretary roles before he was named immigration minister. He was later tapped to lead the hot housing file as the Liberal government faced criticism for failing to address an acute shortage of affordable homes.
A cabinet shuffle has been expected for some time to fill several vacancies and replace Liberal ministers not seeking re-election.
Filomena Tassi, the minister responsible for the Federal Economic Development Agency for Southern Ontario, Northern Affairs Minister Dan Vandal, Sports Minister Carla Qualtrough and National Revenue Minister Marie-Claude Bibeau have announced they will not run again.
Pablo Rodriguez stepped down as transport minister and quit the Liberal caucus in September to run for the Quebec Liberal leadership.
Randy Boissonnault left his cabinet role as employment minister last month, following a scandal that grew from questions over his claims of Indigenous identity and his business dealings.
