Canadian Prime Minister Justin Trudeau’s leadership in Canada faces a significant challenge after the unexpected resignation of his longtime ally and Finance Minister, Chrystia Freeland. The shocking development unfolded on Monday, as a new finance minister was swiftly appointed, but Trudeau remained silent, leaving the nation with growing uncertainty about his political future.

Freeland’s departure came alongside a harsh resignation letter, accusing Trudeau of prioritizing “costly political gimmicks” over critical economic issues. Her resignation has compounded Canada’s existing concerns, especially in light of Donald Trump’s looming tariff threats. The incoming US president has announced plans to impose a 25% tariff on Canadian goods unless tighter security measures are agreed upon at the border. Such tariffs could severely harm Canada’s economy.

Chris Sands, director of the Wilson Center's Canada Institute, said, "Freeland's exit makes Canada look quite confused and uncertain." He further added that Trudeau's isolation, with key ministers leaving, had left him in a vulnerable position. In her resignation letter, Freeland mentioned that Trudeau informed her last week that he no longer wanted her to continue as the country’s main economic advisor, a move that led to her decision.

The resignation has led to significant political turbulence, with the future of a scheduled economic update hanging in the balance. Sands explained that Trump's election victory has created divisions among US allies, including Canada, as leaders struggle to decide whether to confront or avoid conflict with the incoming US administration. While Trudeau has tried to build relations with Trump, Freeland’s approach was more in line with that of Mexico, which has opted for a more confrontational stance in response to the tariff threat.

Freeland, also Canada’s deputy prime minister, was instrumental in renegotiating the US-Canada-Mexico trade agreement during Trump’s first term, a highly stressful and difficult process.

The political storm intensified as Canada’s opposition leaders called for Trudeau to resign. Pierre Poilievre, leader of the Conservative Party, demanded an immediate federal election, claiming the government was spiraling out of control. Laura Stephenson, a political science professor at Western University, commented that changing leadership might not alter the dynamics with Trump, adding that both Trudeau and Poilievre would likely face the same tough stance from the US president.

After nearly a decade in power, Trudeau is facing mounting pressure to step down. His approval ratings have dropped from 63% at the start of his tenure to 28% in June, according to polling data. With the Liberals’ prospects fading, internal party members have also been urging the prime minister to resign. While some MPs have distanced themselves from the issue, others continue to focus on serving Canadians.

Despite the growing pressure, Trudeau remained defiant, expressing pride in his government’s accomplishments during a recent party fundraiser, although he avoided answering questions from the press.