The newly elected President Donald Trump expressed joy over the surprising resignation of a senior Canadian cabinet member on Monday night, labeling her as “toxic” and “not at all beneficial for negotiating deals on behalf of the discontented citizens of Canada.”
Earlier that day, Chrystia Freeland resigned from her roles as Deputy Prime Minister and Finance Minister in the government of Prime Minister Justin Trudeau.
In a letter addressed to Trudeau that she shared publicly, Freeland criticized him for supposedly being unprepared for a potential trade conflict amid a Trump administration known for imposing tariffs.
She highlighted Trudeau’s supposed preoccupation with political “gimmicks” that could render the country vulnerable to economic instability as it contends with Trump’s “assertive economic nationalism and the looming threat of 25 percent tariffs.”
“This threat must be taken with utmost seriousness. It requires us to maintain our financial reserves now, preparing for potential challenges in a tariff conflict,” Freeland wrote to her leader, mentioning that she would continue her tenure as a backbench member of the governing Liberal Party. “This means avoiding extravagant political gimmicks, which we cannot afford and which undermine Canadians’ confidence in our recognition of the seriousness of the situation.”
One of the “gimmicks” she likely referred to was the two-month suspension of sales tax on various products aimed at alleviating the increasing cost of living, scheduled to last until mid-February, potentially costing the federal government up to CAD$2.7 billion ($1.9 billion).
As a former financial journalist, Freeland played a vital role as a representative in the initial Trump administration, where she oversaw the International Trade and Foreign Affairs sectors and was one of Canada’s primary negotiators for the United States–Mexico–Canada Agreement, which replaced the North American Free Trade Agreement at Trump’s direction.
Shortly after Freeland’s comments about her party leader, Trump retaliated with insults.
“Her actions were completely toxic and utterly unhelpful for forging deals that benefit the very dissatisfied citizens of Canada,” he stated in a post on Truth Social. “She certainly won’t be missed!!!”
Dominic LeBlanc, Minister of Public Safety and a loyalist to Trudeau, took over Freeland’s position as Finance Minister. LeBlanc had visited Trump at his Mar-a-Lago estate in Palm Beach, Florida, along with the prime minister just weeks prior.
Both were part of a delegation that attempted to persuade Trump not to proceed with his plans to impose 25 percent tariffs on imports from Canada and Mexico, which could drastically alter two of the largest trading relationships in the world.
At the event, Trump humorously suggested that Canada could join as the 51st state, continually addressing Trudeau as “Governor” on Monday.
Whether as Governor or not, Trump may soon be facing a different Canadian leader. A Canadian election is required by October 25, 2025, and Trudeau’s Liberals are significantly lagging behind the opposition Conservative Party, led by Pierre Poilievre, who public opinion polls indicate is perceived as more capable of handling Trump.
Freeland’s resignation sparked widespread speculation in Ottawa on Monday regarding Trudeau’s potential need to resign, thereby allowing a new Liberal leader to prepare for the upcoming election. He was already under pressure from some backbenchers within his caucus to step down after almost ten years in power.
Jagmeet Singh, the leader of the left-leaning New Democratic Party that supports Trudeau’s Liberals in the House of Commons, urged him to resign on Monday.
Tari Ajadi, a political analyst at Montreal’s McGill University, remarked to the Canadian Broadcasting Corporation that Freeland’s exit has effectively left Trudeau at the helm of a “zombie government.”
“It’s not an issue of if but when things will eventually unravel,” he concluded.
