Once seen as a rising star of the left, Canadian Prime Minister Justin Trudeau is in serious political jeopardy after the resignation of his top deputy, Finance Minister Chrystia Freeland.
The shocking news resonated across Canada's border with America, as President-elect Trump celebrated the development in a sarcastic post. Trump has made no secret of his dislike for Freeland, who renegotiated NAFTA with the first Trump administration.
"The Great State of Canada is stunned as the Finance Minister resigns, or was fired, from her position by Governor Justin Trudeau. Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada. She will not be missed!!!" Trump wrote.
In her resignation letter, Freeland criticized Trudeau's response to Trump's "extremely serious" threats to impose 25% tariffs on Canadian imports. Trudeau scrambled to Mar-A-Lago last month for dinner with Trump and took a picture with him.
Freeland criticized Trudeau for responding to Trump's threats with "costly political gimmicks" like a tax holiday to help Canadians deal with inflation. Freeland said Canada must keep its "fiscal powder dry" for a protracted trade war with the United States.
"For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada," Freeland wrote.
“Our country is facing a grave challenge,” Freeland said in her letter. “That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war.”
Trudeau has replaced Freeland with Dominic LeBlanc, a close ally who joined Trudeau for dinner at Mar-A-Lago last month.
Freeland's resignation is a shocking blow to Trudeau, who had long counted her as one of his closest supporters.
But the prime minister's political star has dimmed as Canadians simmer over a housing crisis worsened by high immigration rates. The crisis has challenged Trudeau's image as an immigrant-friendly liberal, as even he has admitted Canada needs to tighten its borders.
But the about face may be coming too late, with many seeing Freeland's resignation as a bad omen for Trudeau and his tenuous hold on power.
Trump has belittled Trudeau's embattled position, recently labeling him the governor of the 51st American state. If Trudeau is not forced to resign soon, he is facing a widely anticipated shellacking in an election next year.