Freeland Resigns as Canada's Deputy Prime Minister Amid Policy Conflicts with Trudeau

In a significant political development, Chrystia Freeland, Canada’s Deputy Prime Minister, has stepped down from her position following reported disagreements with Prime Minister Justin Trudeau over key policy matters.

Sources close to the matter confirmed to CNN-News18 on Tuesday that Freeland’s resignation was driven by differences related to economic strategy, including proposed temporary tax breaks and government spending measures.

Freeland’s decision to resign is believed to have been further fueled by tensions over handling trade relations with the United States, particularly concerning tariffs proposed by then-President-elect Donald Trump on Canadian imports.

This unexpected resignation adds to the growing challenges for Trudeau’s administration, which has been grappling with internal divisions and growing political instability. Recent polling shows Trudeau trailing by 20 percentage points behind Conservative leader Pierre Poilievre.

Freeland’s departure underscores a widening rift within Trudeau’s cabinet over economic policies. The primary point of contention appears to be the government’s response to U.S. trade policies, notably Trump’s proposed tariffs. This disagreement highlights broader frustrations within the ruling party over its economic direction, sparking fears of further instability within the Liberal government.

The resignation of Freeland has sparked fresh concerns about Trudeau’s leadership ability, with some analysts suggesting that it could signal a potential crisis for the Prime Minister.

The timing of Freeland’s exit adds to mounting criticism of Trudeau’s handling of internal and external challenges, which includes upcoming federal elections set for 2025. As the election approaches, Trudeau’s government faces increasing pressure to regain public trust and address economic issues.

With 2025 polls looming, the Liberal Party is under significant scrutiny. The ongoing economic challenges, compounded by Freeland’s resignation, threaten to undermine Trudeau’s position as the leader of Canada. Key issues, such as the handling of U.S. trade relations and Trudeau’s approach to economic policy, are expected to be pivotal in the coming election campaign.

Additionally, Trudeau's attempts to appease minority groups have attracted criticism. Notably, his handling of the Khalistani separatism issue has drawn sharp condemnation from critics. The diplomatic fallout with India, following Trudeau’s accusations regarding Indian government involvement in the killing of Khalistani leader Hardeep Singh Nijjar, has further complicated his leadership.

Trudeau’s comments regarding the alleged involvement of Indian officials in the murder of Nijjar have strained diplomatic ties between Canada and India, leading to a major diplomatic row. The Indian government has vehemently denied the allegations, dismissing them as unfounded and politically motivated.

Former Canadian cabinet minister Ujjal Dosanjh has criticized Trudeau for exacerbating tensions with India and, by extension, for inflaming the Khalistani movement in Canada. Dosanjh argues that Trudeau’s emphasis on fostering divisive, exclusive identities has hampered efforts to integrate diverse communities, contributing to a rise in separatist sentiments.

The diplomatic row between Canada and India has had tangible effects on the bilateral relationship. Trade between the two nations has declined, with Canadian exports to India falling to $3.80 billion in 2023, down from previous years. Furthermore, investment flows have also been affected, with Canadian investments in India, which reached $3.0 billion in 2011, likely experiencing a downturn due to the ongoing tensions.

The educational sector may also face repercussions from the strained relationship. India remains a key source of international students in Canada, with over 40 percent of foreign students in Canada hailing from India in 2022. The growing diplomatic rift could impact the flow of students, further damaging Canada's relationship with one of its largest trade partners.