Canada’s finance minister resigns as Prime Minister Trudeau grapples with new Trump term | Politics News

Canada’s Finance Minister Chrystia Freeland is a setback for Prime Minister Justin Trudeau, who faces falling approval ratings and opposition within his own party as well as the prospect of a trade war with the United States.

In her resignation letter, which was posted on Monday

“After thinking about it, I have come to the conclusion that the only honest and viable path for me is to resign from the Cabinet,” Freeland wrote.

“Over the past few weeks, you and I have been at odds about the best path forward for Canada,” she continued.

Trudeau did not immediately respond to the resignation, which came just days after a meeting with Canadian provincial leaders to explain his plans to respond to threats of a trade war with U.S. President-elect Donald Trump, which will be on January 20 takes office.

Trump has promised to impose 25 percent tariffs on goods from Canada and Mexico if neighboring countries do not stop what he called an “invasion” of illegal migrants and drugs.

In response, the Trudeau government has reportedly developed plans to invest in increased border security and surveillance, but has faced increasing pressure to take a harder line on Trump.

The government was expected to provide further details of the border plan to the Canadian Parliament on Monday in an economic update to be presented by Freeland.

Freeland also had differences with Trudeau over government spending and details of the update emerged after she tendered her resignation

Canada’s budget deficit for the year ended March was C$61.9 billion ($43.45 billion), 50 percent more than forecast last year, missing one of the three key fiscal targets Freeland wanted to achieve.

The budget update, known as the Fall Economic Statement, was severely delayed this year, leading to widespread speculation among economists and analysts that the government had exceeded its fiscal targets.

Freeland, a former journalist, has also served as deputy prime minister since 2019. In her resignation letter, she said she disagreed with the government’s policy towards its southern neighbor.

“Our country faces a major challenge today,” she said, describing Trump’s threat as “aggressive economic nationalism.”

“We must take this threat extremely seriously,” she continued.

“That means we need to keep our fiscal powder dry today so that we have the reserves we may need for a coming tariff war.” That means foregoing costly political games that we and Canadians can ill afford make it doubtful that we recognize the seriousness of the situation.”

In another blow to Trudeau, Housing Minister Sean Fraser announced Monday that he would not run for re-election.

Upcoming elections

The updates come as Trudeau’s Liberal Party prepares for elections that must take place before the end of October next year. Trudeau said he wanted to remain at the helm of the party.

Since the Liberals do not have an absolute majority, a withdrawal of their allied New Democratic Party would lead to new elections at any time.

Meanwhile, Trump’s victory has heightened concerns that Canada could face global anti-incumbency trends that could lead to the Conservative Party, led by populist Pierre Poilievre, seizing power for the first time since 2015.

After nearly a decade in power, Trudeau saw his approval rating drop to just 33 percent in September.

He continued to face criticism over high consumer and housing costs, the fallout from his administration’s response to the COVID-19 pandemic and, most recently, his dealings with Trump.

The US president-elect and his allies have further contributed to clouding public perception with their regular mockery of Trudeau. Trump recently described the prime minister as the “governor” of a “big state.”

This came shortly after Trudeau, who visited Trump’s Mar-a-Lago estate in Florida, USA, last month to improve relations, said Canada would “respond to unfair tariffs in a number of ways”.

Trudeau’s government previously imposed retaliatory tariffs after Trump imposed tariffs on Canadian steel and aluminum during his first term.

The tariffs were eventually lifted by both countries.