Canadian Prime Minister Justin Trudeau’s political future is uncertain following the abrupt resignation of Finance Minister Chrystia Freeland, who cited disagreements with Trudeau over fiscal policies relating to US President-elect Donald Trump. Reports indicate that Trudeau is contemplating either resigning or proroguing Parliament to avoid a government collapse, with a potential address to Parliament expected later today to clarify his intentions.

Per Freeland’s letter:

We need to take that threat extremely seriously. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment.

That means pushing back against ‘America First’ economic nationalism with a determined effort to fight for capital and investment and the jobs they bring. That means working in good faith and humility with the Premiers of the provinces and territories of our great and diverse country, and building a true Team Canada response.

I know Canadians would recognize and respect such an approach. They know when we are working for them, and they equally know when we are focused on ourselves. Inevitably, our time in government will come to an end. But how we deal with the threat our country currently faces will define us for a generation, and perhaps longer. Canada will win if we are strong, smart, and united.

It is this conviction which has driven my strenuous efforts this fall to manage our spending in ways that will give us the flexibility we will need to meet the serious challenges presented by the United States.

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The political landscape is tumultuous, with Trudeau facing increasing disapproval from the public, as shown by a recent Ipsos poll indicating 67% disapproval of his leadership.

Opposition leader Pierre Poilievre criticized Trudeau’s handling of the country, while NDP leader Jagmeet Singh suggested Trudeau’s time as prime minister may be over.

Despite the chaos, the junior coalition partner, the NDP, continues to support the Liberals, although their leader has likewise called for Trudeau’s resignation.

The situation is evolving rapidly, and the implications for Canada’s governance may be significant depending on Trudeau’s next moves.

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