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On December 16, 2024, Chrystia Freeland, the incumbent Deputy Prime Minister and Minister of Finance of Canada resigned from her position in Justin Trudeau's government prior to the release that day of the government's fall economic statement. Later the same day she was replaced as Minister of Finance by Dominic LeBlanc, while the position of Deputy Prime Minister remained vacant. The events "sent shockwaves" through Canadian politics, with opposition leader Pierre Poilievre calling for a vote of no confidence, and NDP leader Jagmeet Singh calling for Trudeau to resign from office, the first time throughout Trudeau's tenure as prime minister that he had done so.

Background and context

Chrystia Freeland, who was appointed Canada's tenth deputy prime minister in 2019, following the re-election of Trudeau's government, and the nation's first female finance minister in 2020, was often nicknamed the "minister of everything", and widely seen as a potential successor to Trudeau for the leadership of the Liberal Party.

Prime Minister Justin Trudeau, by then in power for nine years following his 2015 election victory, had headed off a caucus revolt in October 2024 over concerns about his unpopularity amid Canada's cost-of-living crisis and rising Conservative poll numbers.

Freeland's resignation happened following the 2024 United States presidential election, amid the prospect of the upcoming Trump administration threatening to impose 25% tariffs upon Canada, with Freeland writing to Trudeau that Canada faces a grave challenge due to this. It occurred within the context of reports about a rift between the prime minister and deputy prime minister for the previous week, with Freeland opposing the Trudeau government's recent promise of $250 cheques to working Canadians who earned $150,000 or less in 2023 (a measure that did not pass due to a lack of NDP support because of a dispute over how many Canadians should receive the cheques). In her letter, Freeland implicitly referred to this proposal as a "costly political gimmick" and argued that the Canadian government should " our fiscal powder dry today, so we have the reserves we may need for a coming tariff war." The resignation was seen as a "clear rebuke" of Justin Trudeau, with speculation arising as to the future of his leadership. The economic statement was eventually released at 4:11 PM EST that same day, and presented in the House of Commons by government House leader Karina Gould. The statement showed a deficit of $61.9 billion for 2023-24, exceeding Freeland's target of $40.1 billion or less, and left Trump's tariff threats largely unaddressed.

According to Freeland's letter, Trudeau had made clear to her on Friday, December 13, that he no longer wished for her to serve as his finance minister and that she would be offered another Cabinet position; she instead decided to resign altogether from his Cabinet, saying that "to be effective, a Minister must speak on behalf of the Prime Minister and with his full confidence. In making your decision, you made clear that I no longer credibly enjoy that confidence." This came after reports of a Cabinet shuffle to be carried out as early as that same week, possibly including the appointment of former Bank of Canada governor Mark Carney, who has also been floated as a potential successor to Trudeau as Liberal leader.

Chrystia Freeland stated that she plans to run for re-election to her Toronto riding in 2025 as a Liberal MP. Political analyst and former NDP leader Tom Mulcair speculated that Freeland is "setting herself up to run against Trudeau" for the Liberal leadership.

Reactions and political fallout

Freeland's resignation and its subsequent political fallout was covered by news outlets both within and outside of Canada.

Sources reported on the afternoon of December 16 that Prime Minister Trudeau was considering proroguing Parliament or even resigning. At a speech at a Liberal fundraiser on the evening of December 16, he remarked, "it was an eventful day, not an easy day."

Ontario Liberal MP Chad Collins said after the Liberal fundraiser on the evening of December 16 that the Liberal caucus is "not united" on the issue of Trudeau's continued leadership of the party, and said that he believes "the only path forward for us is to choose a new leader, and to present a new plan to Canadians with a different vision," while Quebec Liberal MP Anthony Housefather said he believes "the prime minister has passed shelf life" and should resign. At a caucus meeting earlier that day, it was reported that Liberal MPs gave Freeland a standing ovation. Ontario Liberal MP James Maloney, on the other hand, told reporters that Trudeau retained the confidence of the caucus, while chief government whip Ruby Sahota said Trudeau still had her "full support".

Opposition leader Pierre Poilievre had made reference to reports of the Trudeau-Freeland rift the previous week during Question Period on Tuesday, December 10, remarking that Trudeau had "lost control of his own cabinet" and rhetorically asking "which one of is going to win?", while Ontario Conservative MP Melissa Lantsman accused Trudeau of "bullying his female finance minister". Freeland responded by stating that "the only would-be bullies in this House are directly opposite ," insisting that she and Trudeau were "united" and denying claims of the rift. After Freeland's resignation six days later on December 16, Poilievre claimed Trudeau had "lost control, yet clings to power."

Bloc Québécois leader Yves-François Blanchet, whose party had already voted alongside the Conservatives to oust the Trudeau government in multiple unsuccessful motions of non-confidence, remarked on December 16 that "the Trudeau government is done."

NDP leader Jagmeet Singh, whose party had until earlier that year been in a supply-and-confidence arrangement with the Liberal minority government and even afterward had continued to support the government in confidence votes, said that Trudeau's Liberals "are focused on themselves" and that Trudeau "has to go," marking the first time he called for Trudeau's resignation. He nonetheless said that "all options are on the table", when asked whether he would vote no confidence in the government.

Green Party leader Elizabeth May called December 16 an "unprecedented day" in Canadian politics and said she was "shocked by the events of today." She added, "it’s a damn shame when someone as qualified and brilliant as Chrystia Freeland is fired by the prime minister on a Friday."

Alberta premier Danielle Smith said that there had been "rumours" of Freeland's resignation in the days before it was announced, adding "you can’t really put your name on a document you don’t support."

The editorial board of the Toronto Star, which endorsed Trudeau's Liberals in all three elections in which he led them, called for Trudeau's resignation on the evening of December 16.

References

1. Tasker, John Paul (December 16, 2024). "Chrystia Freeland resigns from Trudeau's cabinet and sources say Dominic LeBlanc will replace her". cbc.ca.
2. ^ Major, Darren (December 16, 2024). "Chrystia Freeland's unexpected resignation sparks stunned reactions from all sides". cbc.ca.
3. Ljunggren, David; Shakil, Ismail (December 16, 2024). "Canada finance minister quits after clash with Trudeau over Trump tariffs, spending". Reuters.
4. Taylor-Vaisey, Nick (March 5, 2020). "The minister of everything, Chrystia Freeland, takes on the coronavirus". Macleans.ca. Retrieved December 16, 2024.
5. "Chrystia Freeland's roles in Trudeau's Liberal government". Reuters.
6. "Trudeau says he's staying on as Liberal leader after caucus revolt - National | Globalnews.ca". Global News. Retrieved December 17, 2024.
7. ^ Bowden, Olivia (December 16, 2024). "Canada's deputy PM resigns from cabinet as tensions with Trudeau rise over Trump tariffs". The Guardian. ISSN 0261-3077. Retrieved December 16, 2024.
8. "Trudeau avoids addressing tensions with Freeland over spending on GST holiday, $250 cheques". The Globe and Mail. December 10, 2024. Retrieved December 16, 2024.
9. ^ "FULL TEXT Canadian finance minister's resignation letter to PM Trudeau". Reuters.
10. Stevis-Gridneff, Matina; Austen, Ian (December 16, 2024). "Canada's Deputy Prime Minister Resigns, in Blow to Trudeau's Hold on Power". The New York Times.
11. "Amid political shakeup, feds deliver fall economic statement with $61.9B deficit for 2023-24". CTVNews. December 16, 2024. Retrieved December 16, 2024.
12. "Housing Minister Sean Fraser set to leave Trudeau cabinet, as shuffle looms". CTVNews. December 15, 2024. Retrieved December 17, 2024.
13. "Trudeau makes fresh bid to recruit Mark Carney amid tensions with Freeland". The Globe and Mail. December 12, 2024. Retrieved December 17, 2024.
14. CTV News (December 16, 2024). Freeland setting herself up to run against Trudeau: Mulcair. Retrieved December 16, 2024 – via YouTube.
15. "Trudeau considering his options as leader". CP24. December 16, 2024. Retrieved December 17, 2024.
16. Global News (December 16, 2024). “Not an easy day”: Trudeau addresses Freeland resignation for the 1st time | FULL. Retrieved December 17, 2024 – via YouTube.
17. ^ "Trudeau considering his options as leader after Freeland quits cabinet, sources say". CTVNews. December 16, 2024. Retrieved December 17, 2024.
18. ^ "'We're not united': Liberal caucus meets, as PM Trudeau faces fresh calls to resign in light of Freeland's departure". CTVNews. December 16, 2024. Retrieved December 17, 2024.
19. ^ Global News (December 10, 2024). Freeland denies claims she's at odds with Trudeau over GST holiday: "We are united". Retrieved December 17, 2024 – via YouTube.
20. "Trudeau has lost control but 'clings to power,' Poilievre says". CBC News.
21. "'The Trudeau government is done': Blanchet". CTV News. Retrieved December 17, 2024.
22. "Trudeau 'has to go,' NDP's Singh says in call to 'resign' - National | Globalnews.ca". Global News. Retrieved December 17, 2024.
23. "Documenting The Past 40 Years Of Media Election Endorsements". The Maple. September 20, 2021. Retrieved December 17, 2024.
24. "Star Editorial Board: It's time for Justin Trudeau to resign". Toronto Star. December 16, 2024. Retrieved December 17, 2024. {{cite web}}: |first= missing |last= (help)

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