OTTAWA — Prime Minister Justin Trudeau's government is reeling after suddenly losing its top cabinet minister, Finance Minister and Deputy Prime Minister Chrystia Freeland, reigniting calls for Trudeau to step down and call an election.
Freeland made a surprise declaration she's making her exit from cabinet because the prime minister lost faith in her, saying she fought back against some of his policy decisions and that he wanted to assign her to a new role.
"For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada," Freeland said in her resignation letter to Trudeau, which she posted to social media on Monday morning.
She said the country faces a "grave challenge" with the incoming Donald Trump administration and its threat of 25 per cent tariffs.
"We need to take that threat extremely seriously. That means keeping our fiscal powder dry, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment."
Conservative Leader Pierre Poilievre said Trudeau has lost control of the government and repeated calls for an election.
"The government of Canada itself is spiralling out of control, right before our eyes, and at the very worst time," he told reporters on Parliament Hill.
Poilievre said it's up to NDP Leader Jagmeet Singh, whose caucus has supported the minority Liberals in key confidence votes this fall, to force an election.
Singh called on Trudeau to step down as Liberal leader, saying Canadians are struggling with the cost of living and face Trump's dangerous tariff threats, while the Liberals are "fighting themselves instead of fighting for Canadians."
Yet he refused to say if he is now ready to bring down the minority government in a House of Commons vote, repeatedly telling reporters that "all options are on the table."
Singh's New Democrats have voted with the Liberals to defeat Conservative non-confidence motions in the House three times this fall.
Bloc Québécois Leader Yves-François Blanchet said the prime minister should dissolve Parliament and call an election that would be centred on who is best positioned to take on the Trump White House.
Liberal MP Chad Collins, who signed a letter in October with 23 of his Liberal caucus colleagues calling on Trudeau to step down, re-upped his demand, and so too did vocal Liberal dissenter Wayne Long.
A senior government official not authorized to speak publicly on the matter told The Canadian Press that the prime minister does not intend to resign, but that all other options are being considered, including proroguing Parliament.
Liberal MP Anthony Housefather posted on social media that he supports Freeland and has written to caucus chair Brenda Shanahan seeking a national caucus meeting within the next 24 hours.
Freeland's news came just as she was set to deliver the government's fall economic statement in the wake of Trump's election, and on the heels of a government decision to grant consumers a temporary tax holiday on GST.
The surprise move threw into question whether that fiscal update would even go ahead as planned — and if so, who would deliver it.
In question period, Poilievre needled the government on that issue. "I have a question for the finance minister," he said, looking across to Freeland's empty seat. "Who are you?"
Freeland and Trudeau were not in the House of Commons Monday afternoon.
Freeland's bombshell announcement also landed just as Housing Minister Sean Fraser was holding his own news conference to announce he will not seek re-election, citing a need to be closer to his family.
Rumours of a cabinet shuffle have been swirling in Ottawa after several cabinet ministers announced they won't be running in the next campaign, but this major shock to the system ensures the prime minister will have to act soon to shore up his front bench.
Cabinet ministers were terse reacting to the news but the few who spoke to media on their way into a scheduled cabinet meeting expressed confidence in the prime minister and said they will stand by the fiscal update.
Treasury Board President Anita Anand told reporters outside the cabinet room Monday that Freeland is a good friend to her and that "this news has hit me really hard."
Labour Minister Steven MacKinnon said he regrets Freeland's departure, but the government "remains very strong with a number of very capable ministers and the prime minister.”
Trudeau's Liberals have trailed behind Poilievre's Conservative party for more than a year now as an affordability crisis grips the nation.
That's put the Trudeau government consistently on its heels, and on track to lose power in the next election — which must happen before next October — unless something changes to improve his party's fortunes.
Fraser is seen internally as a good communicator and a top performer in cabinet — his name has even been floated at times in speculation as someone who could one day replace Trudeau.
Fraser held several parliamentary secretary roles before he was named immigration minister. He was later tapped to lead the hot housing file as the Liberal government faced criticism for failing to address an acute shortage of affordable homes.
A cabinet shuffle has also been expected for some time to fill vacancies and replace Liberal ministers not seeking re-election.
Filomena Tassi, the minister responsible for the Federal Economic Development Agency for Southern Ontario, Northern Affairs Minister Dan Vandal, Sports Minister Carla Qualtrough and National Revenue Minister Marie-Claude Bibeau have announced they will not run again.
Pablo Rodriguez stepped down as transport minister and quit the Liberal caucus in September to run for the Quebec Liberal leadership.
Randy Boissonnault left his cabinet role as employment minister last month after a scandal that grew from questions over his claims of Indigenous identity and his business dealings.
This report by The Canadian Press was first published Dec. 16, 2024.
Kyle Duggan, The Canadian Press
