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By Hugh Cameron
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Reports are circulating that Canadian Prime Minister Justin Trudeau may consider resigning, following the departure of a top cabinet member and ongoing trade tensions with President-elect Donald Trump.
What's New?
On Monday, CTV News cited sources saying that the Canadian prime minister was considering either resignation or prorogation—the suspension of parliament—in response to the surprise resignation of his finance minister and deputy prime minister, Chrystia Freeland.
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Following Freeland's announcement, Canadian MPs began reiterating calls, made earlier by the opposition and backbench members of Trudeau's own Liberal Party, for him to step down from the position he has held since his 2015 election victory.
Opposition party leaders, including the Conservative Party's Pierre Poilievre, argued during parliament's Monday Question Period that Freeland's exit demanded the resignation of Trudeau.
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Speaking to CTV on Monday, Montreal's Liberal Party MP Anthony Housefather said that his party's leader had pushed the party beyond its "shelf life."
"Incumbents have a certain shelf life in social media age. I believe the prime minister has passed that shelf life. And I think that for Canadians to have a real choice on the table in terms of things that they will go beyond just saying do they want him to be prime minister or not. We need to have a different leader with a different vision for the Liberal Party to be viable in the next election," Housefather said.
Liberals convened an emergency caucus meeting on Monday, after which Ontario MP Chad Collins said: "I'm not going to breach confidentiality in terms of what happened in caucus, but I can say we're not united. There's still a number of our members who feel we need a change in leadership. I'm one of those."
"I get the impression that Trudeau is taking counsel from a small number of confidantes in the Prime Minister's Office," Greg Inwood, professor at Toronto Metropolitan University's Department of Politics and Public Administration, told Newsweek. "They either seem to regard him with a reverence that fogs their vision, or regard their own capacity to proffer advice as inviolable. As long as he listens to them primarily, he will try to endure through this crisis."
Why Did the Finance Minister Resign?
Freeland posted her scathing resignation letter to X on Monday, which detailed disagreements with the Trudeau over how to deal with the "aggressive economic nationalism" of the incoming Trump administration as the reason for her departure.
"On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the Cabinet," Freeland wrote. "Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet."
Remarking on the Trump's plans to impose a 25 percent tariff on goods entering the country from Canada and Mexico, Freeland said: "We need to take that threat extremely seriously."
"That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war," she said. "That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment."
"The immediate crisis Trudeau is facing has been fueled in part by Trump's imminent arrival as president," said Inwood. "It seems clear that Freeland and Trudeau have had disagreements over managing the Canada-U.S. relationship going forward. The tariff issue has cast a shadow over almost everything Canadian governments (federal and provincial) were planning for."
Freeland and Trudeau had already been in a reported disagreement over how to address Canada's cost-of-living crisis, including a two-month holiday sales tax alongside a proposed $250 payment to those earning up to $150,000, according to Canadian newspaper The Globe and Mail.
Public Safety Minister Dominic LeBlanc has since been sworn in as Freeland's replacement, while Freeland said that she will continue to serve as a Liberal MP in Canada.
Newsweek has contacted Trudeau's office for comment on Freeland's departure and for a response to the calls for his resignation.
Why It Matters?
Freeland's resignation is only the latest blow to Trudeau's minority government, which has faced a crisis of popularity, a ballooning federal deficit and further financial threats posed by the incoming U.S. administration.
Trudeau, who has served as the 23rd Prime Minister of Canada since 2015, enjoys only 22 percent approval according to a recent CBS News poll, compared to just under 43 percent for Poilievre.
Trudeau's Liberal Party does not currently enjoy a majority in the Canadian House of Commons, retaining its hold on power through a fragile, de facto coalition agreement with the left-leaning New Democratic Party (NDP). Following the 2021 election in which it won 160 seats, the NDP agreed to a "a supply and confidence" agreement with the Liberals which saw them back Trudeau in parliamentary confidence votes. In September, however, NDP leader Jagmeet Singh announced that he would be rescinding his party's support, and on Monday joined those calling for his resignation.
On Monday, the Canadian government released its fall economic statement for 2024, which forecast a $61.9 billion dollar deficit ($42.5 billion in U.S. dollars), well above the $40 billion outlined in Freeland's Spring budget.
"From COVID to inflation, to housing to immigration, to the deficit, one file after another has posed profound challenges," said Inwood. "And now, the election of Trump has been added to the mix."
Tariff Threats: What Have Trudeau and Trump Said?
In late November, Trump announced that he would be slapping a 25 percent tariff on goods entering the U.S. from Mexico and Canada, citing the high levels of immigration from both countries as his motivation.
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"This Tariff will remain in effect until such time as drugs, in particular Fentanyl, and all illegal aliens stop this Invasion of our country!" The president-elect posted to Truth Social. "Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
Several times since the announcement, including following the pair's meeting at Mar-a-Lago , Trump has referred to the Prime Minister as "governor" of the "Great State of Canada." This is an apparent jab at the leader, likely tied to reports that Trump suggested Canada could become the 51st state of the U.S. if his tariff policies wreck the Canadian economy.
Hours after the announcement, Trudeau had a conversation with the president-elect which he described as a "good call."
"We obviously talked about laying out the facts, talking about how the intense and effective connections between our two countries flow back and forth," Trudeau said. "We talked about some of the challenges that we can work on together. It was a good call."
"One of the things that is really important to understand is that Donald Trump, when he makes statements like that, he plans on carrying them out. There's no question about it." Trudeau said during a press conference a few days later. "Our responsibility is to point out that, in this way, he would be actually not just be harming Canadians, who work so well with the United States, he'd actually be raising prices for American citizens as well and hurting American industry and businesses."
Freeland's Resignation: What have Trudeau and Trump said?
Donald Trump, via Truth Social: "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!!!"
Justin Trudeau, speaking at a Liberal fundraiser on Monday: "It's obviously been an eventful day. It has not been an easy day ... I love this country, I really do. I trust Canadians. There is no place I'd rather be than Canada. And it is the absolute privilege of my life to serve as your Prime Minister."
What Happens Next?
The Prime Minister is scheduled to address parliament on Tuesday, according to CTV's report, where he could address both Freeland's resignation and the calls for resignation from both opposition leaders and members of his own party.
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Update 12/18/24, 5:10 a.m. ET: This article was updated to include comments from Professor Greg Inwood of Toronto Metropolitan University.
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