Prime Minister Justin Trudeau speaks during the national caucus holiday reception December 17, 2024 in Ottawa.Dave Chan/The Globe and Mail
Prime Minister Justin Trudeau told Chrystia Freeland in a Zoom call on Friday that she was going to be replaced as Finance Minister by former central banker Mark Carney, three Liberal sources say.
The sources say Mr. Trudeau was direct in the call, telling her that by Tuesday morning she would no longer be Finance Minister and that the job would be handed to Mr. Carney, former governor of the Bank of Canada and Bank of England. The Prime Minister still expected her to deliver the economic and fiscal update on Monday that showed she would miss the government’s promised $40.1-billion deficit target by more than $20-billion.
Ms. Freeland resigned Monday morning, before delivering the update.
The Globe and Mail is not identifying the Liberal Party sources who were not authorized to publicly discuss what transpired in talks between Mr. Trudeau and Ms. Freeland.
Mr. Carney did not take up the offer. After Ms. Freeland resigned, the Prime Minister named Public Safety Minister Dominic LeBlanc, a close friend, as Finance Minister.
In her resignation letter, Ms. Freeland cited concerns about unnecessary spending and the best approach to deal with incoming president Donald Trump’s American First economic agenda, including his promised tariffs of 25 per cent on Canadian exports to the United States.
It is unclear whether Mr. Carney had accepted the initial offer to join the government. Two sources close to Mr. Carney suggested over the weekend that he was not willing to be part of the government even though he did not immediately close down discussions. The Globe and Mail is not identifying the sources so they would speak freely about Mr. Carney’s deliberations.
Mr. Carney did not respond to questions from The Globe about the offer of becoming Finance Minister.
A senior government official would not discuss the negotiations with Mr. Carney or what role he was offered to join the government. The official said Mr. Trudeau had great respect for Ms. Freeland and described a number of programs she was involved with, including $10-a-day child care. The official noted that Mr. Trudeau and Ms. Freeland hugged each other at Monday’s Liberal caucus meeting.
The official would not say whether there is going to be a cabinet shuffle Wednesday to fill eight portfolios as a result of ministerial resignations and plans by some other ministers to not run again in the next election. The Globe is not revealing the source who was not authorized to discuss negotiations with Mr. Carney and cabinet changes.
At least 13 Liberal MPs have now publicly called for the Prime Minister to step down. “We’ll see where it goes from here,” Ontario MP Yvan Baker said. He declined to say whether there was now an organized effort afoot to convince Mr. Trudeau to leave.
At the Liberal Party’s Christmas party Tuesday night, Ms. Freeland was mobbed as people lined up to get selfies with her.
In a speech to the gathering, Mr. Trudeau alluded to the party infighting and loss of Ms. Freeland as finance minister. “It has been an eventful couple of days. It has not been easy,” he said. “Like most families, we sometimes have fights over the holidays and sometimes like most families we work our way through it.”
He received polite applause. He did not address whether he will remain party leader
Ms. Freeland said in her letter that she was stepping down after Mr. Trudeau informed her on Friday that he no longer wanted her to be his top economic minister. The three Liberal sources said the Prime Minister offered Ms. Freeland a cabinet portfolio on Canada-U.S. relations, but without any ministry attached. That meant she would have no departmental public service staff or statutory authority to deal with the incoming Trump administration. The sources said she regarded the offer as a demotion.
However, the senior government official characterized the Canada-U.S. role as a major responsibility for dealing with the Trump administration that takes office in January.
On Tuesday, Bloc Québécois Leader Yves-François Blanchet said Mr. Trudeau has no legitimacy left to govern and must call an election in January.
The Bloc Leader said with Mr. Trump threatening tariffs that could harm the Canadian economy, the unstable situation faced by the governing Liberals cannot be allowed to stand.
“If he wants to stay where he is now, he needs a mandate, and he does not have one as we speak,” Mr. Blanchet told reporters, speaking in English.
Canada's Bloc Quebecois leader Yves-Francois Blanchet speaks at a press conference on Parliament Hill in Ottawa, on Dec. 17.Patrick Doyle/Reuters
The Zoom call and the letter from Chrystia Freeland that sent shock waves through Ottawa
Ms. Freeland’s departure reignited calls from the Liberal backbenches for Mr. Trudeau to step down as Leader, but Mr. Blanchet said that would not solve the problem – the result would be the same government negotiating with Mr. Trump.
“That is not enough,” he said, in French.
Innovation Minister François-Philippe Champagne characterized what happened between Mr. Trudeau and Ms. Freeland as an internal party issue, and said the focus for the government must now be to get ready for the new U.S. president.
“What happens internally about how we organize ourselves, that’s a discussion that happens in caucus,” he said.
“But what I’m saying is that whilst there might be discussion, we need to focus on really preparing.”
What is happening in Canadian politics, however, has caught Mr. Trump’s eye. In a social media post late Monday night, he referred to Ms. Freeland’s behaviour as “toxic” and not conducive to making deals for Canada.
“She will not be missed!!!” he wrote.
The 13 Liberal MPs who have now publicly called for Mr. Trudeau to step down include Mr. Baker, Helena Jaczek, Patrick Weiler, Wayne Long, René Arseneault, Chad Collins, Sean Casey, Anthony Housefather, Francis Drouin, Ken Hardie, Serge Cormier, Alexandra Mendès and Ken McDonald.
Mr. Trudeau faced the Liberal caucus at a hastily convened meeting late Monday, conversations that MPs said were productive, if not conclusive about what should happen next.
“We had good, constructive meetings in caucus, and we’ll see,” said Nova Scotia Liberal MP Kody Blois.
“I mean, the Prime Minister has said openly that he’s going to reflect on his leadership. So I’ll leave it to him to do that.”
Conservative Leader Pierre Poilievre said what was on display in Ottawa Monday was a “clown show,” but added no one should be laughing because it has consequences.
Mr. Trump is a deal-maker who will exploit any sign of weakness and that is what is on display, Mr. Poilievre told reporters in Mississauga.
“Justin Trudeau’s weakness is harming the reputation of all Canadians,” he said. “It’s causing other world leaders to insult him, and indirectly, insult all Canadians.”
Mr. Poilievre reiterated his call for an immediate election.
In the House of Commons, NDP Leader Jagmeet Singhn once again called on Mr. Trudeau to resign.
“People are right to be angry,” he said. “They have a Prime Minister who is more interested in protecting his own job than defending Canadians against Trump. He has to quit.”
On Tuesday evening, Prime Minister Justin Trudeau spoke at the National Caucus Holiday Party in Ottawa, amid calls to resign after his top minister abruptly quit and criticized his handling of the budget. Trudeau compared the departure of Finance Minister Chrystia Freeland to a family, saying, "sometimes we have fights around the holidays."
The Associated Press