Canada’s Finance Minister Quits Amid Trump Tariff Dispute

Canada’s Finance Minister Chrystia Freeland has resigned from her post, citing disagreements with Prime Minister Justin Trudeau on how to respond to incoming President Donald Trump’s threat of tariffs.

She announced her resignation in a letter to Trudeau on Monday, in which she said the two have been “at odds about the best path forward for Canada”, and pointed to the “grave challenge” posed by Trump’s policy of “aggressive economic nationalism”.

Freeland said the decision comes after Trudeau informed her last week that he no longer wanted her to be his government’s top economic adviser.

Her resignation came hours before she was due to provide an annual fiscal government update in parliament.

In recent days, the two have also reportedly been in a dispute over a policy that would have delivered a C$250 ($175; £139) cheque to every eligible Canadian.

In her publicly-shared resignation letter, Freeland said Canada needs to keep its “fiscal powder dry” to deal with the threat of sweeping tariffs from US President-elect Donald Trump.

She added this means “eschewing costly political gimmicks” that Canada cannot afford.

Trump has promised to impose a levy of 25% on imported Canadian goods, which economists have warned would significantly hurt Canada’s economy.

Referencing the tariffs, Freeland called them a “threat” that needs to be taken “extremely seriously”.

Freeland and Trudeau were reportedly in disagreement over a series of recently-proposed policies by the prime minister designed to address the country’s cost-of-living crisis.

Freeland said she intends to stay on as a Liberal member of parliament, and that she will run again in Canada’s upcoming election, which must be held on or before October.

Her resignation comes after another cabinet member, housing minister Sean Fraser, announced he will not be seeking re-election, saying he wants to spend more time with his family.

BBC/Ejiofor Ezeifeoma