Sun. Jan 18th, 2026

Trump Calls Canada’s Finance Minister ‘Toxic’ as Freeland Resigns Over Rift With Trudeau

Political Fallout Raises Questions About Trudeau’s Leadership

Canadian Prime Minister Justin Trudeau faces the most significant test of his leadership after the resignation of Finance Minister Chrystia Freeland on Monday. Freeland, Trudeau’s longtime ally and deputy prime minister, stepped down after rejecting a reassignment in cabinet, sparking political turmoil in Ottawa.

In her resignation letter, Freeland criticized the Trudeau government’s economic policies, warning against “costly political gimmicks” as Canada faces economic challenges and the threat of U.S. tariffs under President-elect Donald Trump.

Trump Weighs In With Criticism

Donald Trump, in a statement on Truth Social, mocked Freeland and reignited tensions with Trudeau:

“Her behavior was totally toxic, and not at all conducive to making deals… She will not be missed!!!”

Trump’s past remarks about Canada as a “state” and his contentious relationship with Freeland during trade negotiations further fuel the political storm.

Freeland’s Resignation: A Cabinet Shake-Up

Freeland’s departure stems from growing disagreements with Trudeau over government spending, particularly a two-month sales tax holiday and CA$250 rebate cheques. She argued Canada must preserve fiscal resources to prepare for a potential tariff war with Trump.

Trudeau swiftly replaced her with Public Safety Minister Dominic LeBlanc, a close ally, signaling an attempt to steady the government amid mounting calls for his resignation.

Calls for Trudeau to Step Down Intensify

Freeland’s resignation has reignited opposition demands for Trudeau to resign:

  • Jagmeet Singh, leader of the NDP, bluntly stated, “He has to go.”
  • Conservative Leader Pierre Poilievre is pushing for an election, though a no-confidence vote remains unlikely as Parliament heads into its holiday break.

Inside the Liberal Party, dissent is growing. Liberal MP Chad Collins admitted:

“There’s still a number of our members that want a change in leadership. I’m one of them.”

Economic Pressure and Trump’s Influence

Freeland’s resignation comes as Canada grapples with rising inflation, immigration pressures, and Trump’s pledge to impose 25% tariffs on Canadian imports unless border security improves. Freeland had been preparing to announce border measures as part of the fiscal update.

Political analysts note Trudeau’s leadership faces historic challenges. Daniel Béland, a political science professor at McGill University, called the situation a “political earthquake.”

“This is clearly a minority government on life support… It’s hard to know whether this resignation will force the NDP to rethink its strategy.”

What’s Next?

While Trudeau has reaffirmed his intent to lead the Liberals into the next election, his party remains fractured, and his leadership hangs in the balance. With speculation about Mark Carney’s political future and Trudeau’s declining popularity, the coming months could shape Canada’s political direction for years to come.

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