Canada's Deputy PM Freeland resigns over disagreements with Trudeau, says country facing grave challenge

Canada's Deputy Prime Minister Chrystia Freeland on Monday (Dec 16) announced her resignation from the cabinet over disagreements with Prime Minister Justin Trudeau on Ottawa's response to US President-elect Donald Trump's tariff threats.

In a statement shared on X, Freeland, who is also Canada's Finance Minister, stressed that the country is facing a grave challenge with the incoming Trump administration and their tariff threats.

Referring to Canadian PM Trudeau, she said, "For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada."

Watch |Trump's Tariffs: A Trade Gamble With Mexico & Canada | GRAVITAS

'Country today faces grave challenge'

"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 per cent tariffs," the Deputy PM said.

She stressed, "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."

Freeland added, "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 further mentioned that PM Trudeau told her on Friday that he does not want her to serve as finance minister and offered her another position in the Cabinet.

"Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet," she said.

Freeland was first elected to parliament in 2013, however, she joined Trudeau's cabinet two years later when the Liberals swept to power.

The Canadian deputy PM announced her resignation just hours before she was due to deliver a fiscal and economic update in parliament, Bloomberg reported.

It still remains unclear whether that document will be released or not.

(With inputs from agencies)