EDITOR’S NOTE: This article originally appeared on The Trillium, a Village Media website devoted to covering provincial politics at Queen’s Park.
Finance Minister Chrystia Freeland has resigned from cabinet on the same day she was meant to table the Liberal government’s fall economic statement.
In a letter posted to social media, Freeland said that Prime Minister Justin Trudeau offered her another position in cabinet, saying he no longer wanted Freeland to hold the position of finance minister.
“Upon reflection, I have concluded that the only honest and viable path is for me to resign from the cabinet,” she wrote.
“To be effective, a minister must speak on behalf of the prime minister and with his full confidence. In making your decision, you made clear that I no longer credibly enjoy that confidence and possess the authority that comes with it.”
Recent news reports have said the prime minister has been trying to recruit former Bank of Canada governor Mark Carney.
Freeland was due to deliver the government’s fall economic statement later in the day, but in her resignation letter, Freeland warned against “costly political gimmicks” amid a potential tariff war.
“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” she wrote.
There has reportedly been tension between Freeland and the Prime Minister’s Office over the recently announced Working Canadians Rebate offering Canadians $250 in cash. The idea originated from the Prime Minister’s Office but its future has been uncertain because it does not have the support of an opposition party, which it would need to pass.
The other recent issue of contention is the two-month GST holiday, which took effect on Saturday and wraps up on Feb. 15.
Freeland was first elected MP for Toronto Centre in 2013. She was re-elected three times in the newer riding of University–Rosedale, holding numerous positions under the Trudeau government, including the trade, foreign affairs and intergovernmental affairs files. She has been Trudeau’s deputy since 2019.
Freeland will remain a Liberal MP and said she plans on running in the next election.
Just the latest lost cabinet minister
Freeland is not the first finance minister the prime minister has lost in recent years, nor the only woman to leave cabinet under a cloud of controversy.
Her predecessor, Bill Morneau, who held the job during Trump’s first presidency, left cabinet in 2020 amid reports that he and Trudeau disagreed about the need for fiscal discipline. That came one year after Trudeau lost Jody Wilson-Raybould and Jane Philpott over the SNC-Lavalin scandal and its handling, respectively.
On Monday, shortly before Freeland announced her resignation, Housing Minister Sean Fraser told reporters that he will not be running for re-election to spend more time with his family.
“You blink and you miss it, so I’m going to spend more time with the people I love most,” Fraser said.
Fraser had nothing but good things to say about Freeland, noting that “it’s very difficult” to assess what the change could mean for the government.
“I found her to be professional, supportive of me as a member of parliament, and I consider her a friend, and that friendship will continue long after my time in politics,” he said.
Speaking at a meeting of the country’s premiers Monday, Ontario Premier Doug Ford said he thinks that “all” are concerned about Freeland’s resignation.
The focus of the meeting is the country’s strategy on trade tensions with the U.S. “This is a time for the premiers to step up, which we're going to and project unity across the country,” said Ford, adding that he was surprised by Freeland’s resignation.
It’s unclear when Trudeau will shuffle his cabinet.
—With files from Alan S. Hale
More to come. This is a developing news story.
