Her departure has intensified calls from within his own Liberal Party for Trudeau to step down.

Freeland’s resignation, which coincided with her scheduled economic statement, cited disagreements with Trudeau over how to respond to tariff threats from incoming U.S. President Donald Trump.

Trump has pledged to impose a 25% tariff on Canadian imports unless border security is enhanced, a move that economists warn could severely impact Canada’s economy.

In her resignation letter, Freeland criticized Trudeau for prioritizing “costly political gimmicks” over addressing the serious economic challenges posed by Trump’s aggressive stance.

Her resignation caught the government off guard and raised concerns about the future of the planned economic update.

The situation worsened for Trudeau as the Liberals lost a key by-election seat in British Columbia to the Conservatives, marking their third defeat in recent by-elections.

Analysts suggest that Freeland’s exit reflects a growing sense of instability within the government, with Trudeau reportedly feeling isolated from his remaining ministers.

Opposition leaders, including Conservative Party head Pierre Poilievre, have demanded a federal election, stating that the current leadership is “spiraling out of control.”

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Polls show Trudeau’s approval rating has plummeted from 63% when he took office to 28% in recent months, raising questions about his party’s electoral viability.

Despite the mounting pressure, Trudeau has expressed pride in his government’s achievements and has reiterated his intention to run in the next federal election.

Meanwhile, provincial leaders are meeting to discuss strategies to address the looming tariff threats and restore stability in the face of uncertainty.