Canadian Prime Minister Justin Trudeau quietly defied mounting calls for his resignation on Monday, asking Dominic LeBlanc to serve as finance minister after Chrystia Freeland resigned from the post with a scathing letter that sounded the alarm about U.S. President-elect Donald Trump's threat to impose economically devastating tariffs on Canada and Mexico.
Ahead of a Liberal caucus meeting, some members of Trudeau's own party joined Bloc Québécois Leader Yves-François Blanchet, Conservative Party of Canada Leader Pierre Poilievre, and New Democratic Party (NDP) Leader Jagmeet Singh in urging him to step aside. Federal elections must be held by October but some want them called immediately.
"Today, I'm calling on Justin Trudeau to resign. He has to go," said Singh. "Right now, Canadians are struggling with the cost of living. I hear it everywhere I go. People cannot find a home that they can afford. They can't buy their groceries. And on top of that, we have Trump threatening tariffs at 25%, which put hundreds [of] thousands of Canadian jobs at risk."
"And instead of focusing on these issues, Justin Trudeau and the Liberals focused on themselves," he continued. "They're fighting themselves instead of fighting for Canadians. For that reason, today, I'm calling on Justin Trudeau to resign. He has to go."
Yet, Trudeau seemed determined to stay, addressing his caucus meeting—where the press could see him through windows for some time—but not the public, after appearing at LeBlanc's swearing-in ceremony. LeBlanc, a longtime Liberal member of Parliament who will retain his role as minister of intergovernmental affairs, calmly took questions from reporters after being sworn in.
LeBlanc identified cost-of-living concerns as his No. 1 focus as finance minister, described Trump and Trudeau's recent meeting at Mar-a-Lago as a conversation between "two leaders focused on a number of priorities" including border security, and called Freeland a friend and "somebody that I admire as a colleague."
On the day that Freeland was set to deliver the delayed Fall Economic Statement to Parliament, she wrote in a resignation letter that after a Friday meeting in which Trudeau told her that he no longer wanted her to serve as finance minister, "the only honest and viable path for me is to resign from the Cabinet."
The Associated Press reported that "a Liberal party official said Freeland was offered a position as minister in charge of Canada-U.S. relations without portfolio and without a department. The official, who spoke on condition of anonymity because they were not authorized to speak publicly on the matter, said the position would have been in name only and wouldn't have come with any of the tools Freeland previously had when she negotiated trade with the United States."
At least one member of Parliament was among those framing the development as Trudeau forcing Freeland, who also served as deputy prime minister, out of the Cabinet. According to CBC:
When asked about the timing of Freeland's resignation, NDP MP Charlie Angus didn't mince words.
"What the f--k? How does a prime minister, on the eve of a statement that we've been waiting for for months, deep-six his finance minister and think that things are going to be normal?" Angus said.
"We've got a prime minister missing in action and now his deputy prime minister, his finance minister has jumped ship. The prime minister needs to show up and explain how this gong show is allowed to happen."
As The Guardian pointed out, "Freeland and Trudeau have reportedly disagreed over proposals for temporary tax breaks and other spending measures, which were meant to shore up political support, but risked forcing Freeland to miss her spending goals."
In Freeland's resignation letter to Trudeau—which she also shared on social media—she acknowledged that "for the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada."
The former finance minister wrote that "our country today faces a grave challenge. The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25% tariffs."
"We need to take that threat extremely seriously," she continued. "That means keeping our fiscal powder dry today, 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."
"That means pushing back against 'America First' economic nationalism with a determined effort to fight for capital and investment and the jobs they bring," she added. "That means working in good faith and humility with the premiers of the provinces and territories of our great and diverse country, and building a true Team Canada response."
Although Freeland is leaving the Cabinet, she made clear that she is not resigning as a Liberal member of Parliament and attended the caucus meeting. She also wrote that "I am committed to running again for my seat in Toronto in the next federal election."
Despite Freeland's exit from the Cabinet, the Fall Economic Statement was delivered to Parliament on Monday. Reutersreported that "Canada's fiscal deficit for the year ended March came in at C$61.9 billion ($43.45 billion), more than half of what was projected last year, missing one of the three key fiscal objectives... Freeland had set to achieve."
Much of the extra spending is due to one-time expenses—C$4.7 billion ($3.3 billion) related to the Covid-19 pandemic and C$16.4 billion ($11.52 billion) for Indigenous payouts—Reuters noted, but even without that, the deficit would have been around C$40.8 billion, ($28.66 billion), higher than the previously forecast C$40 billion ($28.1 billion).
In an apparent nod to Trump's demands, the fiscal update said that "the government is committed to Securing Our Borders and combating criminal networks that seek to move illicit goods, drugs, and people across our shared border with the United States."
The statement did not say anything about the proposed C$250 ($175.63) "Working Canadians Rebate," which was expected to provide relief to nearly 19 million people and cost an estimated C$4.68 billion ($3.29 billion).
