Chrystia Freeland said the country must keep its “fiscal powder dry” for a potential tariff war with the US
Chrystia Freeland, Canada’s finance minister and deputy prime minister, resigned from Prime Minister Justin Trudeau’s cabinet on Monday, citing policy disagreements and growing concerns over his economic direction. Her resignation comes in the wake of new controversy surrounding her family’s past, particularly her grandfather’s ties to Nazi collaboration in Ukraine.
Freeland, who has served in top roles within Trudeau’s Liberal government since 2013, delivered a critical resignation letter accusing the prime minister of prioritizing “costly political gimmicks” over prudent fiscal management amid looming US tariff threats. She specifically opposed Trudeau’s proposed sales tax holiday and $175 direct payments to Canadians, calling them unaffordable.
“We need to take [U.S. President-elect Donald Trump’s] tariff threats seriously,” Freeland wrote. “That means keeping our fiscal powder dry… and avoiding wasteful spending that undermines Canadians’ trust in our leadership.”
Trudeau quickly appointed longtime ally Dominic LeBlanc, then public safety minister, as Freeland’s replacement. He was sworn in the same day and vowed to tackle inflation and ease strained U.S.-Canada relations.
However, Freeland’s departure has reignited scrutiny of her family’s wartime past. Her maternal grandfather, Michael Chomiak, edited a Nazi-controlled Ukrainian newspaper that disseminated anti-Semitic propaganda during World War II. Despite public records confirming his role, Freeland long dismissed the reports as Russian disinformation.
The controversy first surfaced in 2017, when historical investigations revealed Chomiak’s Nazi collaboration. Freeland insisted her grandfather fled Soviet persecution, but multiple sources, including Canadian and international media, exposed his complicity in Holocaust-era propaganda.
A new book by award-winning author Peter McFarlane is said to “blow the lid off the attempts to whitewash Chomiak’s Nazi past.” Called “Family Ties: How a Ukrainian Nazi and a living witness link Canada to Ukraine today,” it was published this fall.
Freeland has never directly addressed the full extent of her grandfather’s wartime activities, maintaining that her family’s story reflects “the complex history of Europe in the 20th century.” Critics argue that her denials have damaged her credibility.
Her resignation comes as Trudeau’s popularity wanes amid economic troubles and internal party unrest. With inflation rising and his government’s policies under fire, opposition leaders and some Liberal MPs have urged him not to seek a fourth term.
Freeland stated she intends to continue serving as a Liberal MP and run for re-election in Toronto.
