We’re still in wait-and-see mode as the federal government navigates an unprecedented political crisis.
Justin Trudeau’s cabinet is meeting following a bombshell dropped by former federal Finance Minister and Deputy PM Chrystia Freeland, who resigned this morning.
Freeland delivered the news this morning via X (Formerly Twitter) indicating that the Prime Minister asked her to step aside as Finance Minister, leaving her in an untenable position.
In an open letter written to Prime Minister Justin Trudeau, she says the government needs to take the threat of 25 per cent tariffs very seriously, and to be prepared for a “coming tariff war. That means eschewing,” what she calls “costly political gimmicks, which we can ill afford.”
The development has sparked a scramble on Parliament Hill where the fall fiscal update was due to be released this afternoon.
That is now up in the air, raising questions not just about who will fill the role vacated by Freeland but whether this could signal renewed calls for Trudeau’s resignation and a possible death knell for the party as a whole.
Trudeau has been courting former Bank of Canada Governor Mark Carney for some time and met with Carney again on Friday. Freeland was asked about her political future and what those meetings meant on Friday.
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Federal Finance Minister Chrystia Freeland has resigned from the federal cabinet, just hours before she was set to deliver her fall fiscal update.
In a letter to the Prime Minister that she shared on X (formerly Twitter) she referenced a meeting with Justin Trudeau on Friday in which he told her he no longer wanted her to serve as Finance Minister and offered her another position in Cabinet.
See my letter to the Prime Minister below // Veuillez trouver ma lettre au Premier ministre ci-dessous pic.twitter.com/NMMMcXUh7A
— Chrystia Freeland (@cafreeland) December 16, 2024
She says on reflection, she has concluded that the only “honest and viable path” is to resign from Cabinet.
Rumours have been swirling for some time that Freeland’s position as Finance Minsiter was on shaky ground with the PM reportedly courting former Bank of Canada Governor Mark Carney to take over the role.
The question now, is will this afternoon’s fall fiscal update come today, and if so, who is delivering it?
As recently as Friday, Freeland defended her position as Finance Minister when questioned by reporters about Trudeau’s meetings with Carney
“I’m proud and grateful to be able to serve int he cabinet of the Prime Minister ” she told reporters on Friday. “I really don’t spend a lot of time focusing on Ottawa gossip, my focus is on doing what I can to serve Canada, and Canadians in what is a really challenging time for our country.”
President of the Treasury Board, Anita Anand, was emotional and appeared shaken when she spoke with reporters as she entered the Parliament Building this morning.
“Chrystia Freeland is a good friend, someone I work with very, very closely,” Anand said “this news has hit me really hard, and I’ll reserve further comment until I have time to process it.”
Fraser Out
It’s one of a couple of political bombshells dropped today. The other was federal Housing Minister Sean Fraser’s decision not to run again.
Fraser was at the forefront of a number of major affordable housing initiatives and stimulation programs.
Fraser reiterated his support of the federal Liberal Party, citing a desire to spend more time with his young family.
