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Resignation of Chrystia Freeland

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Resignation of Chrystia Freeland
Freeland and Trudeau in 2018
DateDecember 16, 2024; 13 days ago (2024-12-16)
CauseFreeland's opposition to Trudeau's fiscal policy

On December 16, 2024, Chrystia Freeland, the minister of finance and deputy prime minister of Canada, resigned from Cabinet. As the finance minister, Freeland was set to deliver the Trudeau government's Fall Economic Statement in the afternoon. Later in the day, Freeland was replaced as finance minister by Dominic LeBlanc, who concurrently serves as the minister of public safety, democratic institutions and intergovernmental affairs. She retained her seat in the House of Commons as the member of Parliament (MP) for University—Rosedale and remained a part of the Liberal Party caucus; however, her resignation left the position of deputy prime minister vacant.

The events "sent shockwaves" through Canadian politics, with Conservative Party leader Pierre Poilievre, who is the leader of the Opposition, calling for a vote of no confidence, and New Democratic Party (NDP) leader Jagmeet Singh initially calling for Prime Minister Trudeau to resign from office (without specifying whether the NDP would vote for or against a confidence motion), before announcing the NDP's support of a motion of no confidence on December 20. With this announcement, Trudeau's government would lose the votes needed in the House of Commons to survive, since the Conservatives, Bloc Québécois, and NDP have a collective majority in the House and would vote non-confidence in the government, triggering a general election likely in early 2025.

Background and context

Freeland, who was appointed Canada's tenth deputy prime minister in 2019, following the re-election of Trudeau's government, and the country'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. Freeland was seen as exceptionally loyal to Trudeau.

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.

The weeks leading up to Freeland's resignation saw two other departures from Cabinet. On November 20, 2024, Alberta MP Randy Boissonnault resigned from the Cabinet following allegations that he ran a business seeking federal contracts and falsely claimed to be Indigenous. On December 15, 2024, Housing Minister Sean Fraser announced his intention to leave the federal cabinet, citing personal reasons.

Freeland's resignation occurred in the context of the incoming Trump administration in the United States threatening to impose 25 per cent tariffs upon Canada, with Freeland writing to Trudeau that Canada faces a grave challenge due to this. The previous week, reports had circulated about a rift between the prime minister and deputy prime minister, with Freeland opposing the Trudeau 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 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." According to Freeland, Trudeau was planning to replace her with former Bank of Canada governor Mark Carney during a potential cabinet shuffle that week. Carney had been floated in media reports as a possible successor to Trudeau as Liberal leader, with him "taking steps" towards running for political office.

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. Freeland ended a letter she wrote on December 17 thanking her supporters with "this is not the end of the road," further raising speculation about her future ambitions, as multiple Liberal MPs began voicing their support for her to seek 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.

Liberal Party

  • 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 was "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. Fellow Ontario MP Helena Jaczek agreed with Housefather and said that Trudeau "just doesn't represent what I want to see in a leader", while New Brunswick MP Wayne Long called Freeland's decision to leave cabinet "bold" and "a devastating blow" for the Prime Minister that should convince him to resign. At a caucus meeting earlier that day, it was reported that Liberal MPs gave Freeland a standing ovation. Several other Liberal MPs called on Trudeau to resign, including British Columbia MPs Ken Hardie and Patrick Weiler, New Brunswick MPs René Arseneault, Jenica Atwin, and Serge Cormier, Newfoundland and Labrador MP Ken MacDonald, Ontario MPs Chandra Arya, Yvan Baker, Valerie Bradford, Francis Drouin, Ali Ehsassi, and Rob Oliphant, Prince Edward Island MPs Sean Casey and Heath MacDonald, Quebec MPs Sophie Chatel and Alexandra Mendès, and Yukon MP Brendan Hanley. 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". New Brunswick MP Joanne Thompson also expressed her support for Trudeau, saying that it was "not the time for to fracture" in the face of the 25% tariffs, while Newfoundland and Labrador MP Churence Rogers announced he would not seek re-election but still supported Trudeau, claiming his decision not to seek re-election was separate from the "turmoil" in the caucus. Within the first week, the number of Liberal MPs publicly calling for Trudeau's resignation was 21, while it was reported that 50 Liberal MPs - roughly one-third of the Liberal caucus - privately wanted Trudeau to resign.
  • Ontario Liberal MP Chandra Arva commented that Freeland "appears to be the person around whom the caucus members can rally behind", adding that Freeland represents a "viable and reassuring alternative" to Trudeau. When asked, Casey said he would like to see Freeland launch a leadership bid.
  • On 21 December, the Ontario Liberal caucus held a virtual meeting where 51 of the province's 75 Liberal MPs came to a consensus that Trudeau should resign.

Opposition parties

  • 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 Deputy Opposition Leader and 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 the last of 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. Later, on December 20, Singh stated that the NDP "will vote to bring this government down" in an open letter posted on X.
  • 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."

Provincial

  • 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."
  • Ontario Premier Doug Ford said Freeland's resignation was unexpected during a meeting of Canada's premiers in Toronto, calling it "chaos" and reiterating his call for national unity: "I think we all are , but again, this is a time for the premiers to step up — which we're going to and project unity across the country."
  • When asked, Quebec Premier François Legault avoided saying whether he still had confidence in the Prime Minister or the Trudeau government following Freeland's resignation. Since September he has asked the Bloc Québécois to withdraw support from the Liberal minority government. To questions, he stated "today, it is up to the people in the House of Commons to decide how they will vote in the coming weeks, the coming months. It is not up to me to tell them what to do."
  • Saskatchewan Premier Scott Moe, in speaking at a Council of the Federation meeting, stated: "I talked with Chrystia Freeland late last week as well and have appreciated always working alongside her, She was our engagement point at this table for a number of years."

International

  • President-elect of the United States Donald Trump praised Freeland's departure by posting "The Great State of Canada is stunned as the Finance Minister resigns, or was fired, from her position by Governor Justin Trudeau. Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada. She will not be missed!!!" on his social media platform, Truth Social.

Media

  • 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.
  • Brian Lilley of the Toronto Sun called for Trudeau's resignation on December 16, stating "For the good of your party, the good of your country, the good of the Canadian people, it’s time to leave."

Business

  • Dominique Lapointe, director at Manulife, Canada's largest insurance company, referring to the resignation of Freeland, stated "It certainly adds another layer of uncertainty as we likely enter a period of volatility with the upcoming U.S. administration.”

Public reaction

  • In a poll conducted by Abacus Data on the day after the resignation, 67% of Canadians wanted Trudeau to resign, compared to just 19% who wanted him to stay on as prime minister. While the Liberals dropped one point in nationwide voting intentions from the week prior (from 21% to 20%), the Conservatives, increasing one point to 45%, opened up their largest lead (25 points) since Abacus began tracking voting intentions. The Liberals were just two points ahead of the third-place NDP, at 20% to 18%. 58% of those polled also said that they wanted an immediate election.
  • In the federal by-election in the B.C. riding of Cloverdale—Langley City on December 16 (the day of the resignation), a seat which the Liberals had won by 3 points in 2021, Conservative candidate and former MP for the riding Tamara Jensen won by a decisive 50-point margin, garnering roughly two-thirds of the vote. The Conservative vote total increased 30 points from the previous election, while the Liberal vote total decreased by 23 points and the NDP's by 7.

References

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