Canadian Prime Minister Justin Trudeau faced a major political crisis when Finance Minister Chrystia Freeland, a key cabinet member, unexpectedly resigned on Monday.

This surprising move sparked concerns about Trudeau’s ability to remain in power, especially given his declining popularity due to rising inflation and immigration issues.

Opposition parties seized the opportunity, with Jagmeet Singh of the NDP calling for Trudeau’s resignation and the Conservatives demanding a snap election.

Freeland, who also served as Deputy Prime Minister, revealed in her resignation letter that Trudeau had offered her a different cabinet position on Friday, but she deemed leaving the government the only appropriate course of action.

She cited disagreements with Trudeau on recent policy decisions, including a proposed sales tax holiday and financial aid package, stating that Canada needs fiscal prudence amidst potential trade conflicts with the U.S.

Freeland argued against these measures, considering them “costly political gimmicks” given the threat of substantial tariffs from the incoming U.S. administration.

A Liberal party official, speaking anonymously, confirmed that Freeland was offered a symbolic position focused on Canada-U.S. relations, lacking the authority and resources of her previous role.

Her resignation occurred as she was preparing to deliver the fall economic statement and announce border security measures to mitigate potential U.S. tariffs, which President-elect Trump threatened to impose on goods from Canada and Mexico unless immigration and drug trafficking are addressed.

While Trudeau intends to lead the Liberals into the next election, some party members oppose a fourth term for him. Freeland’s departure significantly weakens Trudeau’s government.

Government officials expressed concern and shock at the development, highlighting the precarious situation the government finds itself in.

Opposition leader Pierre Poilievre criticized the government’s handling of the situation, emphasizing its vulnerability in the face of potential U.S. tariffs.

No Canadian prime minister has secured four consecutive terms in over a century.

With the next federal election due before October, the Liberals depend on the support of at least one other party to maintain power. The NDP’s support is crucial, and its withdrawal could trigger an early election.

NDP leader Jagmeet Singh demanded Trudeau’s resignation, though he didn’t explicitly state a no-confidence vote, keeping all options open.

Bloc Quebecois leader Yves-François Blanchet declared Trudeau’s government finished, urging him to accept the reality of the situation.

Trudeau, who enjoyed high popularity in 2015, is now facing serious challenges. Public dissatisfaction with the cost of living and immigration policies is rising.

Ontario Premier Doug Ford described the situation in Ottawa as chaotic.

Trudeau’s political legacy includes liberal immigration policies, cannabis legalization, and a carbon tax.

In her letter, Freeland alluded to the government’s eventual end, emphasizing the importance of serving the public interest.

Freeland’s resignation coincides with Trudeau’s attempts to recruit Mark Carney, former head of the Bank of England and Bank of Canada, to his government.

Carney’s reputation and prior interest in politics have fueled speculation about a potential role in Trudeau’s cabinet, though his involvement remains unclear.

Political analysts described Freeland’s resignation as a significant blow to Trudeau’s government, highlighting her previous position as Trudeau’s potential successor.

Reports suggest internal communication issues may have contributed to Freeland’s difficulties within the government.

Political science professor Daniel Béland described the event as a political earthquake, emphasizing both Freeland’s power and the critical timing and manner of her resignation.

The already precarious position of the minority government is further threatened, and it remains uncertain if the NDP will reconsider its support for Trudeau.