The Latest: Freeland leaves cabinet, fall economic statement in limbo

It’s not yet clear who will present the document in the House of Commons later today.

12:30 p.m. ET

Facing a barrage of questions outside the meeting room, Industry Minister François-Philippe Champagne says the situation is serious but it’s time to focus on the “best interest of Canadians.”

Asked whether, under Parliamentary rules, he is now finance minister, Champagne says he is not and remains industry minister.

11:30 a.m. – 12 p.m. ET

On their way out of the cabinet meeting, ministers face reporters’ questions about whether they still have confidence in Justin Trudeau to continue as prime minister and Liberal leader.

11:30 a.m. ET

The embargoed media reading for the fall economic statement, which was supposed to begin at 10 a.m., has not yet started. The documents remain hidden under black sheets.

It remains unclear if another cabinet minister will step in and present the statement or if it will be postponed following Freeland’s resignation.

11 a.m. ET

At a meeting of Canada’s premiers in Toronto today, Ontario Premier Doug Ford is asked if he is concerned about Freeland’s resignation. He responds: “We all are.”

The premiers are meeting to discuss U.S. president elect-Donald Trump’s tariff threat. Ford says he did not know about Freeland’s resignation ahead of time.

He says it’s a time for premiers to step up and project unity across the country.

9:30 a.m. ET

Freeland’s announcement comes just before the Liberal cabinet was set to meet around 9:30 a.m.

Going into that meeting, some cabinet ministers appear shaken up by the news of Freeland’s departure, including Treasury Board President Anita Anand.

Anand says Freeland is a “good friend,” and that the news hit her hard.

Indigenous Services Minister Patty Hajdu says she wishes Freeland “all the best,” and that the decision to resign is “difficult and deeply personal.”

9:07 a.m. ET

In a political bombshell, Finance Minister Chrystia Freeland announces that she’s exiting cabinet.

In a resignation letter posted to social media, she says Prime Minister Justin Trudeau told her Friday she was out as finance minister. While she says Trudeau offered her another role in cabinet, the only “honest and viable path” is to leave cabinet entirely.

She points to an internal dispute with the prime minister over the path forward.

Freeland says the country faces a “grave challenge” with the incoming Donald Trump administration and its threat of 25 per cent tariffs.

“We need to take that threat extremely seriously. That means keeping our fiscal powder dry, 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.”

9 a.m. ET

With the government set to present the Fall Economic Statement later in the afternoon, doors open for reporters in Ottawa to enter the embargoed reading of the document.

Housing Minister Sean Fraser announces he will not run in the next federal election, citing family reasons. He says he will remain engaged in politics, but that today’s announcement is not about a transition to another political post.

Fraser was recently asked if he is planning a bid to lead the Nova Scotia Liberals after the party was decimated in last month’s provincial election. He said in late November he was “not making any plans.”

This report by The Canadian Press was first published Dec. 16, 2024.

CP Staff, The Canadian Press

by Canadian Press

The Latest: Freeland leaves cabinet, fall economic statement in limbo

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