In a bold move, Canada's Deputy Prime Minister Chrystia Freeland resigned from her Cabinet role, citing critical disagreements with Prime Minister Justin Trudeau over handling tariff threats from the U.S.

Freeland's decision came after clashes with Trudeau on responses to U.S. economic policies under the upcoming Donald Trump administration, as WION reports.

Freeland, who also served as the country's finance minister, publicly announced her resignation on Dec. 16. This decision underscored growing tensions within the Canadian government regarding international economic strategies.

Freeland and Trudeau had diverged significantly in their approaches to anticipated tariff impositions by President-elect Trump, who has been vocal about his "America First" economic policy.

The policy includes imposing a 25% tariff which could severely impact Canadian exports to the U.S.

Freeland Advocates Strong Response to U.S. Tariffs

In her resignation statement, Freeland criticized the aggressive stance of the incoming U.S. administration and emphasized the need for Canada to prepare robustly.

"Our country today faces a grave challenge," Freeland stated, highlighting the severity of the impending economic threats.

She advocated for "keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war." Freeland's strategy was to build fiscal reserves to cushion the potential blow from the U.S. tariffs.

Further emphasizing her stance, Freeland argued that Canada should be proactive. "That means pushing back against 'America First' economic nationalism with a determined effort to fight for capital and investment and the jobs they bring," she added.

Disagreements Lead to Cabinet Reshuffle

The disagreement reached a tipping point when Trudeau, apparently unsatisfied with Freeland's direction, asked her to step down as finance minister on the preceding Friday.

He offered her another position within the Cabinet, which she declined.

Reflecting on the government's direction and her role, Freeland expressed that stepping down was the only viable and honest path she could take, leading to her resignation.

This bold decision came just hours before she was scheduled to present a crucial fiscal update in parliament.

The uncertainty about the scheduled fiscal and economic update has raised concerns about potential delays and the overall economic strategy of the Trudeau government moving forward.

Freeland's Political Career and Future Prospects

First elected to parliament in 2013, Freeland quickly rose through the ranks, joining Trudeau's cabinet in 2015 after the Liberals secured a victory. Her resignation marks a significant shift in her political trajectory and has sparked discussions about her future moves.

Throughout her tenure, Freeland has been recognized for her understanding of international economics and her robust defense of Canadian interests on the global stage.

Her departure is seen as a loss for Trudeau's cabinet, especially at a time of such critical global economic challenges.

As the situation unfolds, it remains to be seen how Trudeau will adjust his cabinet and strategies to face the increasing economic nationalism from the United States.