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Canadian finance minister quits in blow to Trudeau Ukrainian Nazi-grandad scandal Canadian finance minister quits
(about 2 hours later)
Chrystia Freeland said the country must keep its “fiscal powder dry” for a potential tariff war with the USChrystia Freeland said the country must keep its “fiscal powder dry” for a potential tariff war with the US
Canadian Finance Minister Chrystia Freeland resigned from Justin Trudeau’s cabinet on Monday, delivering a scathing letter that criticized the prime minister for his handling of economic policy and his focus on “costly political gimmicks” amid looming US tariff threats. 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.
In her resignation letter, Freeland stated that she and Trudeau had found themselves at odds over the best path forward for Canada, particularly in light of the incoming administration in the US under President-elect Donald Trump. Trump has threatened to impose a 25% tariff on all products entering the US from Canada and Mexico. 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 that threat extremely seriously,” Freeland wrote. “That means keeping our fiscal powder dry today, 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.” “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.”
The letter highlighted Freeland’s concerns about the government’s recent policies, including Trudeau’s proposal for a two-month sales tax holiday and $175 checks for roughly half of Canadians, which she deemed unaffordable measures. 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.
“This is a moment of grave challenge,” Freeland wrote. “Canadians know when we are working for them, and they equally know when we are focused on ourselves.” 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.
Freeland, who also served as deputy prime minister, was scheduled to deliver the autumn economic statement on Monday afternoon. Instead, Karina Gould, leader of the government in the House of Commons, presented the document revealing that Canada’s fiscal deficit for the year came in at $43.45 billion – about 50% more than projected. 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.
Trudeau appointed Dominic LeBlanc, a longtime ally and current public safety minister, to replace Freeland. LeBlanc was sworn in later that day and emphasized the government’s focus on addressing the cost of living and finding common ground with Trump. 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. 
“It hasn’t been an easy day,” Trudeau told a room of party supporters, but he did not provide details on his plans moving forward. 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 damaged her credibility.
Freeland, a former journalist, is the granddaughter of a known Nazi collaborator. Although she and her representatives have repeatedly tried to dismiss this fact as “Russian disinformation,” a number of archival records have proven that her grandfather, Michael Chomiak, was a Ukrainian nationalist and had colluded with the Nazis during World War II. 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.
Throughout her time in office, Freeland has served in various roles in the Liberal government since 2013. She also announced her intention to run again for her seat in Toronto in the next federal election, which must be held by October 2025. Freeland stated she intends to continue serving as a Liberal MP and run for re-election in Toronto.
The resignation comes at a critical time for Trudeau, whose popularity has waned due to concerns over inflation and immigration. The prime minister faces growing calls to resign from both opposition parties and some members of his own party, who say they do not want him to run for a fourth term.