Deputy Prime Minister and Finance Minister Chrystia Freeland has officially resigned from Cabinet, she announced in a statement on Monday.
The announcement comes just hours before the minister is set to release the 2024 Fall Economic Statement, adding an unexpected twist to today’s highly anticipated fiscal update.
In a candid letter shared online, Freeland revealed that Prime Minister Justin Trudeau asked her to step down as Finance Minister last week. While Trudeau offered her another role in Cabinet, Freeland said she felt stepping away entirely was “the only honest and viable path.”
“For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada,” Freeland said in a statement posted to X (formerly Twitter) on Monday morning.
“To be effective, a Minister must speak on behalf of the Prime Minister and with his full confidence,” she wrote. “You made clear that I no longer credibly enjoy that confidence.”
Freeland pointed to mounting economic challenges, particularly from the United States, as a key concern.
“Our country today faces a grave challenge,” she wrote. “The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25 per cent tariffs.”
She emphasized a need for a united, pragmatic approach to addressing these issues, stressing that Canadians expect leaders to prioritize them over “costly political gimmicks.”
“[Canadians] know when we are working for them, and they equally know when we are focused on ourselves,” she added.
Freeland’s resignation marks a major shift in Trudeau’s government, especially as the federal government faces intense scrutiny over its budgetary performance. Today’s economic statement is expected to reveal whether Ottawa can meet its fiscal targets — particularly Budget 2024’s promise to limit the 2023-24 deficit to $40.1 billion.
Freeland joins a growing list of ministers resigning from Trudeau’s Cabinet or stepping away from federal politics altogether. Housing Minister Sean Fraser also announced this morning that he would not be running in the next federal election.
Despite stepping down from Cabinet, Freeland said she still intends to continue serving as a Liberal MP and plans to run for re-election in Toronto during the next federal vote.
