Canada’s Deputy Prime Minister Resigns — Setback to Trudeau

What Happened?

On December 16, 2024 Cynthia Freeland, Canada’s Minister of Finance and Deputy Prime Minister, suddenly resigned from office.

This has dealt another blow to the credibility of Prime Minister Justin Trudeau.

Upon her exit from office, Ms. Freeland accused Mr. Trudeau of resorting to ‘costly political gimmicks’ such as tax breaks and handouts in order to shore up his flagging tenure as Canada’s Prime Minister.

On the day she resigned Ms. Freeland had been due to deliver an economic update to Canada’s House of Commons. Instead, she announced her immediate resignation.

Why it Matters

Rumors had been circulating in Canada for many weeks that Ms. Freeland would soon be replaced.

According to The Economist:

‘Mr. Trudeau’s office had been undermining Ms. Freeland for several months. The prime minister’s efforts to woo Mark Carney to Ms. Freeland’s post were not kept private (Mr. Carney resisted quieter pleas by Mr. Trudeau in both 2019 and 2021). Mr. Trudeau also undermined Ms. Freeland by announcing a plan to temporarily reduce Canada’s value-added tax, and to send C$250 ($175) cheques to eligible Canadians over her objections.’

Ms. Freeland is now the sixth cabinet member to depart this year. It throws the future of current Prime Minister Justin Trudeau into serious doubt.

According to Ipsos, ‘Around two-thirds (67%) of Canadians now disapprove of Justin Trudeau's leadership as Prime Minister, an increase of 4 points since June. Approval is at a new low with only one-third (33%) saying they approve of Trudeau's leadership (-4 points since June).’

Mr. Trudeau, once a political darling of the left, is now facing growing calls to resign. The same poll named Pierre Poilievre as the most popular choice to replace Mr. Trudeau.

How it Affects You

As Reuters reported this week:

‘Recent polls show Mr. Trudeau’s Liberals would be crushed by the official opposition Conservatives in an election that must be held by the end of October 2025. The withdrawal of the left-leaning New Democratic Party from its agreement with the Liberals could bring forward an election months earlier.’

If Mr. Trudeau remains in office, he would be in a weak position to face incoming U.S. President-Elect Donald Trump. Remember, Trump has vowed to increase tariffs on a range of countries, including Canada.

Mr. Trudeau has not given any indications he plans to resign from office anytime soon, saying he still intends to run for re-election in the fall of 2025. With Canada’s parliament set to adjourn for the holidays, Mr. Trudeau would not likely face any potential no confidence votes until at least January of 2025.