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2024–2025 Canadian political crisis

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(Redirected from 2024 Canadian political crisis) Political crisis in Canada from 2024 to 2025
This article needs to be updated. Please help update this article to reflect recent events or newly available information. (January 2025)
2024–2025 Canadian political crisis
Canadian prime minister Justin Trudeau (left). Former deputy prime minister and former finance minister Chrystia Freeland (right).
Date16 December 2024 (2024-12-16) – 6 January 2025 (2025-01-06)
(3 weeks)
TypePolitical crisis
Cause
Participants
Outcome

A political crisis emerged in Canada after Chrystia Freeland, the minister of finance and deputy prime minister, resigned from Cabinet on December 16th, 2024. The events "sent shockwaves" through Canadian politics, leading to calls for Trudeau to resign. On 6 January 2025, Prime Minister Justin Trudeau announced his pending resignation as leader of the Liberal Party, and prorogued Parliament until March.

Background

Freeland and Trudeau in 2018

Chrystia Freeland was appointed Canada's deputy prime minister in 2019, following the re-election of Trudeau's government, and was the country's first female finance minister in 2020, and was often nicknamed the "minister of everything", and widely seen as a potential successor to Trudeau for the leadership of the Liberal Party. Freeland was seen as exceptionally loyal to Trudeau.

Trudeau had, by then, been in power for nine years following his 2015 election victory. He had headed off a caucus revolt in October 2024 over concerns about his unpopularity amid Canada's cost-of-living crisis and rising Conservative poll numbers. Trudeau had been reduced to a minority government in both the 2019 and 2021 elections. A confidence and supply agreement with the opposition New Democratic Party (NDP) helped sustain the minority government from March 2022 until the NDP withdrew from the agreement in September 2024.

In the weeks leading up to Freeland's resignation, two other sudden departures from Trudeau Cabinet occurred. On 20 November 2024, Alberta MP Randy Boissonnault resigned from the Cabinet following allegations that he ran a business seeking federal contracts and falsely claimed to be Indigenous. On 15 December 2024, Housing Minister Sean Fraser announced his intention to leave the federal cabinet, citing family reasons.

Resignation of Chrystia Freeland

On 16 December, 2024, Chrystia Freeland resigned from Trudeau's cabinet. Trudeau had made clear to Freeland on Friday, 13 December that he no longer wished for her to serve as finance minister and that she would be offered another Cabinet position; she instead decided to resign altogether from his Cabinet, saying that "to be effective, a Minister must speak on behalf of the Prime Minister and with his full confidence. In making your decision, you made clear that I no longer credibly enjoy that confidence."

Freeland's resignation occurred in the context of the incoming Trump administration in the United States threatening to impose 25 per cent tariffs upon Canada, with Freeland writing to Trudeau that Canada faces a grave challenge due to this. The previous week, reports had circulated about a rift between the prime minister and deputy prime minister, with Freeland opposing Trudeau’s recent promise of $250 cheques to working Canadians who earned $150,000 or less in 2023. Freeland referred to the proposal as a "costly political gimmick" and argued that the Canadian government should " our fiscal powder dry today, so we have the reserves we may need for a coming tariff war."

The resignation was seen as a "clear rebuke" of Trudeau, with immediate speculation arising as to the future of his leadership. The economic statement was eventually released at 4:11 PM EST that same day, and presented in the House of Commons by Government House Leader Karina Gould. The statement showed a deficit of $61.9 billion for 2023–24, exceeding Freeland's target of $40.1 billion or less, and left Trump's tariff threats largely unaddressed.

Loss of support for Justin Trudeau

Trudeau began to face calls to resign amid polls showing the unpopularity of the move and his government as a whole, causing a major crisis of confidence in his nine-year government.

Liberal Party

At a speech at a Liberal fundraiser on the evening of Freeland's resignation, Trudeau remarked, "it was an eventful day, not an easy day." Sources reported Trudeau was considering proroguing Parliament or resigning. Ontario Liberal MP Chad Collins stated that the Liberal caucus was "not united" on the issue of Trudeau's continued leadership of the party, and said he believes "the only path forward for us is to choose a new leader, and to present a new plan to Canadians with a different vision," while Quebec Liberal MP Anthony Housefather said he believes "the prime minister has passed shelf life" and should resign. Fellow Ontario MP Helena Jaczek agreed with Housefather and said that Trudeau "just doesn't represent what I want to see in a leader", while New Brunswick MP Wayne Long called Freeland's decision to leave cabinet "bold" and "a devastating blow" for the Prime Minister that should convince him to resign.

Chief government whip Ruby Sahota

At a caucus meeting earlier that day, it was reported that Liberal MPs gave Freeland a standing ovation. British Columbia MP Rob Morrison shared hopes for a prorogued parliament, followed by a leadership review and general election. Ontario MP Judy Sgro told caucus colleagues, “I continue to believe that early in the New Year a plan moving forward will be announced including his resignation and we will be consumed with new challenges”. Concerning the possibility of Trudeau's resignation, Ontario MP and Deputy House Leader Mark Gerretsen said “It’s really difficult for him to come to any other conclusion at this point”, and said most of his riding's constituents wanted Trudeau to resign.

Several other Liberal MPs called on Trudeau to resign, including Alberta MP George Chahal, British Columbia MPs Ken Hardie, Parm Bains, and Patrick Weiler, Manitoba MP Ben Carr, New Brunswick MPs René Arseneault, Jenica Atwin, and Serge Cormier, Newfoundland and Labrador MP Ken MacDonald, Ontario MPs Chandra Arya, Yvan Baker, Valerie Bradford, Francis Drouin, Ali Ehsassi, Peter Fragiskatos, and Rob Oliphant, Prince Edward Island MPs Sean Casey and Heath MacDonald, Quebec MPs Sophie Chatel and Alexandra Mendès, and Yukon MP Brendan Hanley. Ontario Liberal MP James Maloney, on the other hand, told reporters that Trudeau retained the confidence of the caucus, while chief government whip Ruby Sahota said Trudeau still had her "full support".

New Brunswick MP Joanne Thompson also expressed her support for Trudeau, saying that it was "not the time for to fracture" in the face of the 25% tariffs, while Newfoundland and Labrador MP Churence Rogers announced he would not seek re-election but still supported Trudeau, claiming his decision not to seek re-election was separate from the "turmoil" in the caucus. Nova Scotia MP Jaime Battiste said he would continue to support Trudeau in 2025, with the reason being that the two are ideologically similar on protecting the environment, while Ontario MP Marcus Powlowski said that despite backing the Prime Minister, Powlowski accepted that Trudeau could not win the next general election as party leader and should prorogue parliament in order for a leadership race to occur.

By 21 December, the number of Liberal MPs publicly calling for Trudeau's resignation was 21, while it was reported that 50 Liberal MPs – roughly one-third of the Liberal caucus – privately wanted Trudeau to resign. Chandra Arya commented that Freeland "appears to be the person around whom the caucus members can rally behind", adding that Freeland represents a "viable and reassuring alternative" to Trudeau. When asked, Sean Casey said he would like to see Freeland launch a leadership bid.

On 21 December, the Ontario Liberal caucus held a virtual meeting where 51 of the province's 75 Liberal MPs came to a consensus that Trudeau should resign. Freeland herself, as an Ontario Liberal MP, was reportedly on that call, but said nothing as the issue was debated.On 23 December, the Atlantic Liberal caucus was revealed to be meeting over Trudeau's political future. On 29 December, the caucus and its chair, Nova Scotia MP Kody Blois, called on Trudeau to resign. On 30 December, the Quebec Liberal caucus called on Trudeau to resign.

Opposition parties

Opposition leader Pierre Poilievre

Opposition leader Pierre Poilievre referenced the reported rift between Trudeau and Freeland the previous week during Question Period on 10 December, remarking that Trudeau had "lost control of his own cabinet" and rhetorically asking "which one of is going to win?", while Deputy Opposition Leader and Ontario Conservative MP Melissa Lantsman accused Trudeau of "bullying his female finance minister". Freeland responded by stating that "the only would-be bullies in this House are directly opposite ," insisting that she and Trudeau were "united" and denying claims of the rift. After Freeland's resignation, Poilievre claimed Trudeau had "lost control, yet clings to power."

Bloc Québécois leader Yves-François Blanchet, whose party had already voted alongside the Conservatives to oust the Trudeau government in the last of multiple unsuccessful motions of non-confidence, remarked on 16 December that "the Trudeau government is done."

NDP leader Jagmeet Singh, whose party had until earlier in 2024 been in a supply-and-confidence arrangement with the Liberal minority government, and even afterward had continued to support the government in confidence votes, said on 17 December that Trudeau's Liberals "are focused on themselves" and that Trudeau "has to go," marking the first time he called for Trudeau's resignation. He nonetheless said that "all options are on the table", when asked whether he would vote no confidence in the government. Subsequently, on 20 December, Singh stated that the NDP "will vote to bring this government down" in an open letter posted on X.

Green Party leader Elizabeth May called 16 December an "unprecedented day" in Canadian politics and said she was "shocked by the events of today."

Quebec Premier François Legault avoided saying whether he retained confidence in Trudeau following Freeland's resignation, stating it would be "up to the people in the House of Commons to decide how they will vote in the coming weeks, the coming months." He had asked the Bloc Québécois to withdraw support from the Liberal minority government back in September 2024.

Media

  • The editorial board of the Toronto Star, which had endorsed Trudeau's Liberals in all three elections in which he led them, called for Trudeau's resignation on the evening of 16 December.
  • Brian Lilley of the Toronto Sun called for Trudeau's resignation on 16 December stating "For the good of your party, the good of your country, the good of the Canadian people, it’s time to leave."

Public

  • In a poll conducted by Abacus Data on the day after Freeland's resignation, 67% of Canadians wanted Trudeau to resign, compared to just 19% who wanted him to stay on as prime minister. While the Liberals dropped one point in nationwide voting intentions from the week prior (from 21% to 20%), the Conservatives, increasing one point to 45%, opened up their largest lead (25 points) since Abacus began tracking voting intentions. The Liberals were just two points ahead of the third-place NDP, at 20% to 18%. 58% of those polled also said that they wanted an immediate election. 338Canada's analysis projection for 22 December saw the Liberals' expected nationwide seat count decrease from 47 to just 39, losing even second place to the Bloc. The site gave the Liberals only a 36% chance of forming the Official Opposition (to the Bloc's 61%).
  • In the federal by-election in the B.C. riding of Cloverdale—Langley City on 16 December (the same day as Chrystia Freeland's resignation), a seat which the Liberals had won by 3 points in 2021, Conservative candidate and former MP for the riding Tamara Jensen won by a decisive 50-point margin, garnering roughly two-thirds of the vote. The Conservative vote total increased 30 points from the previous election, while the Liberal vote total decreased by 23 points and the NDP's by 7.
  • Dominique Lapointe, director at Manulife, Canada's largest insurance company, following Freeland's resignation, stated "It certainly adds another layer of uncertainty as we likely enter a period of volatility with the upcoming U.S. administration.”

Resignation of Justin Trudeau

Further information: Resignation of Justin Trudeau

On 6 January 2025, Justin Trudeau announced he would resign as Liberal Leader and Prime Minister of Canada by March 24th upon the election of a new party leader.

In his resignation speech, Trudeau stated that he would not be able to effectively campaign in the 2025 federal election if he was facing internal party dissent. He also announced that Governor General Mary Simon would prorogue Parliament until 24 March, 2025. Trudeau expressed pride in his government's achievements, including his support for Ukraine during the ongoing conflict and his handling of the COVID-19 pandemic. He also highlighted his fight for the country and his inspiration from the resilience and determination of Canadians. Despite his resignation, Trudeau emphasized the critical moment the world is facing and his confidence in Canada's ability to navigate through it.

Trudeau will remain in office until the Liberal Party elects a new leader.

Reactions

Domestic

  • Official opposition leader Pierre Poilievre of the Conservative Party emphasized his calls for an early federal election, stating that Liberal MPs "want to protect their pensions and paycheques by sweeping their hated leader under the rug months before an election to trick you, and then do it all over again."
  • NDP leader Jagmeet Singh stated that "The problem is not just Justin Trudeau. It's every minister that's been calling the shots, it's every Liberal MP that looked down their nose at Canadians who are worried about high costs or crumbling health care."

International

  • US president Joe Biden responded to Trudeau's resignation by stating, "The American and Canadian people are safer because of him. And the world is better off because of him."
  • US president-elect Donald Trump framed Trudeau's resignation around his comments about annexing Canada, stating, "Many people in Canada LOVE being the 51st State. The United States can no longer suffer the massive Trade Deficits and Subsidies that Canada needs to stay afloat. Justin Trudeau knew this, and resigned. If Canada merged with the U.S., there would be no Tariffs, taxes would go way down, and they would be TOTALLY SECURE from the threat of the Russian and Chinese Ships that are constantly surrounding them. Together, what a great Nation it would be!!!"

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