Freeland's resignation was prompted by tariff threats from President-elect Trump, necessitating Canada's economic preparation for a potential confrontation, The Hill reported.

In her resignation letter addressed to Canadian Prime Minister Justin Trudeau, Freeland expressed alarm over the aggressive economic nationalism of the incoming U.S. administration, including a 25% tariff threat on goods from Canada and Mexico.

Announcement Of Tariffs On North American Goods

President-elect Trump announced last month on Truth Social his plans to impose a 25% tariff on goods from Canada and Mexico, and an additional 10% on goods from China. These measures aim to compel these nations to strengthen border security and address the export of fentanyl to the U.S.

The proposed tariffs have sparked concerns about a possible tariff war, with Freeland stressing the urgency of preparing economically. She emphasized the need for Canada to conserve fiscal resources and avoid political maneuvers that could undermine the country's economic stability.

Response To 'America First' Policies

Freeland criticized the 'America First' economic policies in her letter, indicating they pose a direct threat to Canadian interests. She highlighted the importance of opposing these policies by attracting capital and investment to sustain and create jobs within Canada.

She also called for collaboration among Canada’s provinces and territories, advocating for a unified national response, termed as "Team Canada," to effectively counter the U.S. administration's aggressive moves.

Diplomatic Tensions Escalate

Adding to the diplomatic strain, Trump also insulted Canadian Prime Minister Justin Trudeau in a post on Truth Social, mockingly referring to him as the “governor” of the “Great State of Canada.” This remark has been seen as derogatory and undermining serious diplomatic discussions.

Trump's statements added, “Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!”

Promoting A Team Canada Effort

Freeland emphasized the need for good faith and humility in working with the Premiers of the provinces and territories of Canada to build a true Team Canada response to these economic challenges.

Moreover, this coordinated approach is crucial for addressing the significant economic threats posed by the new U.S. tariffs and, therefore, marks a critical moment in U.S.-Canada relations.

In addition, Freeland's resignation and her calls for a strategic response further underscore the gravity of the economic challenges that Canada faces with the new U.S. administration.