Prime Minister Trudeau addresses Party’s internal challenges

On December 17, Prime Minister Justin Trudeau publicly acknowledged the internal turmoil within his ruling Liberal Party following the sudden resignation of Finance Minister Chrystia Freeland.

Speaking at the Liberal Party’s National Caucus gathering, Trudeau downplayed the severity of the situation, likening it to family disputes, and emphasized the party's ability to overcome challenges. "Like most families, sometimes we have fights around the holidays, but of course, like most families, we find our way through it," he told the audience.

Freeland’s resignation, which took place just ahead of a crucial economic update and a new U.S. administration set to impose potential tariffs on Canadian exports, has escalated pressure within the Liberal Party.

Some Liberal MPs, dissatisfied with Trudeau’s leadership, have begun calling for his resignation. Trudeau has thus far rejected these calls, but with growing frustration among party members, the political landscape appears increasingly uncertain.

Freeland, 56, who also served as Deputy Prime Minister, had played a key role in managing Canada-U.S. relations. She was deeply involved in coordinating with the 10 provinces to ensure a unified Canadian response to U.S. policies.

However, after Trudeau offered her a diminished role, Freeland cited concerns that Trudeau’s push for increased spending could undermine Canada's economic resilience, especially as the U.S. President-elect Donald Trump prepares to introduce tariffs that could harm the Canadian economy.

Freeland’s sudden departure leaves the Liberal government facing one of its most significant crises since Trudeau took power in 2015. The move comes at a time when the Liberals are trailing behind the Conservative Party in the polls ahead of the 2025 federal election.

The resignation also comes just hours before Freeland was scheduled to present a fall economic update that revealed a C$61.9 billion deficit for the 2023/24 budget—far exceeding earlier predictions.

As the Liberal Party grapples with internal divisions and external challenges, analysts warn that Trudeau's leadership may be increasingly difficult to maintain in the face of growing pressure and a rapidly shifting political landscape.

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