Canada's Finance Minister Resigns, Citing Trump's Tariff Threat as a Key Challenge

Trump's Tariff Threat Looms Over Canadian Economy

Canada's finance minister noted President-elect Trump's tariff threat in her resignation letter dated Monday. “Our country today faces a grave challenge,” Chrystia Freeland said in a letter addressed to Prime Minister Justin Trudeau. “The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25 percent tariffs.”

Freeland expressed the need to take the threat seriously, suggesting that Canada should maintain its fiscal reserves in anticipation of a potential tariff war. “That means keeping our fiscal powder dry today, so we may need it for a coming tariff war,” she said, urging against costly political gimmicks.

Implications of Trump’s Policies

The president-elect indicated last month via Truth Social that he would impose 25 percent tariffs on Canadian and Mexican goods, alongside an extra 10 percent tariff on Chinese goods. “Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem,” Trump stated.

As part of her resignation stance, Freeland called for a united Canadian response, advocating for pushing back against 'America First' economic nationalism. “That means working in good faith and humility with the Premiers of the provinces and territories of our great and diverse country,” she added, aiming for a collaborative effort to safeguard Canadian interests.