Trudeau under siege: Freeland’s resignation exposes cracks in Canada’s leadership

For years, Canadian Prime Minister Justin Trudeau has borrowed a page from Pakistan’s playbook, repeatedly targeting India to mask his political shortcomings. Just as Pakistan often raises the Kashmir issue to distract from domestic troubles, Trudeau stirred up the Khalistani controversy, accusing India of extrajudicial killings in Canada, to deflect attention from his own political crises. While this strategy bought him some time and temporarily shifted the spotlight, Trudeau’s political troubles have now come back to haunt him.

A sudden resignation shakes the Trudeau government

The abrupt resignation of Chrystia Freeland as Canada’s finance minister and deputy prime minister has delivered a seismic shock to Prime Minister Trudeau’s leadership. Freeland, once seen as Trudeau’s most capable and prominent minister, criticised his economic policies and suggested a lack of trust in his leadership. Her departure has reignited long-simmering calls within the Liberal Party for Trudeau to step down, exposing internal rifts that could threaten the party’s unity and future.

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According to The Globe and Mail, Freeland’s decision came just hours before she was scheduled to present the fall fiscal and economic update. In a rushed response, Government House Leader Karina Gould presented the report instead—a move that highlighted the government’s disarray. The report revealed a massive deficit of $61.9 billion, far above the earlier target of $40.1 billion for the 2023-2024 fiscal year. Freeland’s departure shows major disagreements about Trudeau’s economic strategy, especially as Canada prepares for a possible second Trump presidency in the US.

Trudeau’s leadership under fire

Freeland’s resignation letter, released shortly after the announcement, revealed her dissatisfaction with the current leadership. She indicated that Trudeau no longer had full confidence in her as his top economic minister, a situation she found impossible to accept. In her letter, Freeland stressed that a minister can only be effective when they represent the prime minister’s views and enjoy complete trust, indirectly questioning Trudeau’s leadership and his handling of Canada’s economic challenges.

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Freeland also criticised what she described as “costly political gimmicks,” like the GST holiday and urged fiscal caution, particularly as Canada faces the possibility of a “tariff war” with Trump. She referred to Trump’s threats of imposing 25 per cent tariffs unless Canada takes stricter measures against opioid trafficking highlighting the need for economic stability.

According to the CBC, Freeland’s international stature as a respected figure in finance and trade added weight to her remarks. Her journey—from acclaimed journalist and key Liberal recruit to Canada’s first female finance minister—highlighted her importance to Trudeau’s government. Trudeau himself had once praised her as “exactly the right person” to tackle the challenges posed during Trump’s presidency. Now, her sharp criticism and departure have left Trudeau facing mounting isolation.

Calls for Trudeau’s resignation

Freeland’s resignation has exposed growing cracks within the Liberal caucus. According to The Globe and Mail, at least eight Liberal MPs, including Ontario MPs Helena Jaczek, Francis Drouin and Chad Collins, have publicly urged Prime Minister Trudeau to step down. The internal unrest follows an earlier episode in October, when Trudeau ignored a secret letter from MPs asking him to resign.

Despite the mounting pressure, Trudeau has refused to step down. In an emergency caucus meeting held after Freeland’s departure, he promised to “reflect” on the situation but made no indication of resigning. However, signs of unease are apparent, as Natural Resources Minister Jonathan Wilkinson and Treasury Board President Anita Anand were reportedly uncomfortable with the recent developments.

A critical moment for Canada’s economy

Freeland’s resignation is not just a political setback but also an economic challenge for Trudeau’s government. Her exit comes at a time when Canada is grappling with major issues like inflation, rising deficits and tense trade relations with the US. Her warning about the importance of “keeping our fiscal powder dry” feels even more relevant with Trump returning to power. Her criticism of Trudeau’s spending priorities has also sparked concerns about poor economic management.

Freeland has continued to stress the need for Canada to strengthen alliances and practice responsible spending to counter Trump’s “America First” policies. In her resignation letter, she emphasised that how Canada handles its current challenges will shape the country for years to come. Her departure leaves a gap in economic leadership raising worries that Canada might struggle to prepare for these growing external pressures.

Dominic LeBlanc steps in—but can he steady the ship?

Dominic LeBlanc, Trudeau’s close ally and confidant, was swiftly sworn in as finance minister in a rushed ceremony at Rideau Hall. LeBlanc, who will also chair the cabinet committee on Canada-US relations, now faces the daunting task of rebuilding economic confidence while managing party discord. Addressing the immediate challenges, he said his focus would be on affordability and tackling the incoming “American administration’s challenges.”

However, LeBlanc’s appointment raises questions. Critics, including opposition leaders, argue that his close ties to Trudeau may prevent the government from adopting fresh economic strategies.

Trudeau’s falling approval ratings

According to Political Pulse, Trudeau has been Canada’s prime minister for over eight years with the Liberal Party governing for 20 of the last 30 years. While the Liberals secured a 40 per cent vote share in the 2015 election, this dropped to 33 per cent in 2019 and further declined to 32.6 per cent in the 2021 federal election.

Trudeau’s approval ratings have fallen sharply due to challenges in international relations, the economy, housing, healthcare and the growing strength of opposition parties. Support for Trudeau has also declined across major religious groups. Only 31 per cent of Muslims now support the Liberals, a steep drop from 65 per cent in 2016, while support among Jewish Canadians has fallen to 33 per cent, down from 36 per cent in 2018.

Trudeau’s approval ratings are now at their lowest since he took office in 2015. Currently, only about 30 per cent of Canadians approve of his leadership, while 62 per cent disapprove, leaving him with a net approval rating of -32 per cent.

Trudeau’s defining test

Freeland’s resignation represents a defining moment for Justin Trudeau’s leadership and the Liberal Party. It exposes fractures within his government and calls into question his handling of Canada’s economy at a critical juncture. While Trudeau appears determined to stay on, his ability to hold the caucus together and regain public trust remains uncertain.