Trudeau on the brink as ally, finance minister abruptly quits over Trump tariff threats

A weekslong spat between President-elect Trump and Canadian Prime Minister Justin Trudeau continued late on Monday after the U.S.’ northern neighbor saw the abrupt departure of its finance minister.

The sudden resignation of Chrystia Freeland, one of Trudeau’s longtime allies who also served as his deputy prime minister, drew renewed speculation that the prime minister is losing his grip. Trump wasted no time in throwing in another jab, once again referring to Trudeau as "governor" and Canada as a "state."

"The Great State of Canada is stunned as the Finance Minister resigns, or was fired, from her position by Governor Justin Trudeau," Trump said in a social media post late on Monday. "Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada."

TRUMP'S PROPOSED TARIFFS: WHAT CONSUMER PRODUCTS COULD BE IMPACTED?

Freeland, who worked with the previous Trump administration in securing the 2020 U.S.-Mexico-Canada Agreement (USMCA), criticized Trudeau’s handling of Trump’s tariff threats and accused him of playing "costly political gimmicks" in a scathing letter, the BBC reported. 

The former finance minister called Trump’s threats "aggressive economic nationalism" and apparently urged Trudeau to show more backbone when dealing with the incoming president — a stance Mexico is reportedly gearing up to take. 

Trump’s promise last month to slap Canada and Mexico with a 25% tariff on imports if the border is not better secured has not only prompted concern from some economists, it has renewed questions over how to handle the soon-to-be U.S. president. 

This question has been mounting among not only the U.S.’s neighbors, but many in the international community, as geopolitical concerns remain heightened amid the persistent conflicts in the Middle East and the war in Ukraine. 

But Trudeau is reportedly facing mounting criticism at home from his own party and, after nearly a decade in the top seat, has begun to see all-time lows in his approval ratings, which plummeted to 28% in June, compared to the 63% approval he saw when first in office, according to the BBC.

TRUMP'S TARIFFS WOULD DRIVE UP CONSUMER PRICES

Freeland’s departure left Trudeau’s Liberal Party reeling amid an already rocky time as the party lost control over a third seat to their Conservative rivals following a Monday federal by-election, and as the prime minister reportedly faces increasing calls for his resignation.

The Trump transition team, Trudeau’s office and Freeland did not respond to Fox News Digital's questions. 

But according to the leader of Canada’s United Conservative Party, Premier of Alberta Danielle Smith told FOX Business correspondent Edward Lawrence that Freeman’s resignation took everyone by surprise.

"It's very surprising because, of course, she was at the lead of our negotiations with the United States. And we're doing everything we can to avoid 25% tariffs being applied to Canadian goods and hurting American consumers," said Smith, who argued the tariffs would harm not only Canada’s economy but American pockets. 

CLICK HERE TO GET THE FOX NEWS APP

"I think everybody is really worried," she said. "I don't think any economy would be able to survive for very long with a 25% tariff across the board. But I can tell you, I'm also concerned for American consumers."

"I know that with… energy being one of the big exports that we have, putting a tariff of that nature onto oil and gas exports without a dollar to the price of gasoline at the pumps, it would increase the price of power for those who are receiving electricity from… their Canadian counterparts," Smith continued. "I think we've got such an integrated economy that we really have more to talk about on how we mutually benefit from trade. And I think it's up to us to make sure the Americans know that."