The resignation of Freeland, 56, who also stepped down as finance minister, marked the first open dissent against Prime Minister Trudeau from within his cabinet, and may threaten his hold on power.
“Our country today faces a grave challenge,“ Freeland said in her resignation letter to Trudeau, pointing to Trump’s planned 25 percent tariffs on Canadian imports.
First elected to parliament in 2013, the former journalist joined Trudeau's cabinet two years later when the Liberals swept to power, holding key posts including trade and foreign minister, and leading free trade negotiations with the EU and the United States.
Canada's main trading partner is the United States, with 75 percent of its exports each year going to its southern neighbor.
In her resignation letter, Freeland said Trudeau wanted to shuffle her to another job, to which she replied: “I have concluded that the only honest and viable path is for me to resign from the cabinet.”
Warning that it could lead to a “tariff war” with the United States, she said Ottawa must keep its “fiscal powder dry.”
- Trouble for Trudeau -
“It really shows that there is a crisis of confidence in Trudeau,“ she said. “And makes it much harder for Trudeau to continue as prime minister.”
But Freeland’s rejection of his economic policies poses “a big problem,“ she said, and shows his team is not as united behind him as some thought.
Freeland's departure came just hours before she was scheduled to provide an update on the nation's finances, amid reports the government would blow past Freeland's deficit projections last spring.
Housing Minister Sean Fraser, who also announced Monday he was quitting federal politics, described Freeland as “professional and supportive.”
Freeland said she would run for reelection in the country's next parliamentary polls. A vote is scheduled to be held in October 2025 at the latest, but most analysts believe it will come sooner.
Some local media suggested he might step down after Freeland’s exit, but his office flatly rejected the reports as “absolutely not accurate.”
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