Business leaders warn Canada lacks leadership as Trump's trade threats loom after Freeland resigns
Business leaders are expressing concerns that Chrystia Freeland’s resignation as finance minister leaves Canada vulnerable during a critical period for economic stability and US trade relations, according to BNN Bloomberg.
Freeland, who announced her resignation Monday in a letter shared on social media, described Canada as facing a “grave challenge” with the incoming Trump administration and its threats of tariffs.
She urged Prime Minister Justin Trudeau to approach the situation seriously, warning against “costly political gimmicks, which we can ill afford, and which make Canadians doubt that we recognize the gravity of the moment.”
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said Freeland’s departure removes the “most experienced and competent hand we have in Canada-US relations at the time when we need it the most.”
He described the current situation as dire, with a “toughest opponent” in trade relations preparing to take office and promised “Day 1 damage to Canada.”
“We’re very late in the game,” Volpe said. “We’ve got a system; we’ve got a team. We don’t have a quarterback.”
Volpe praised Freeland’s role during the renegotiation of the North American Free Trade Agreement under Trump’s previous administration, calling her approach a “steady hand” that ensured industry stakeholders were involved in discussions.
“We ended up with a new NAFTA that, on the whole, I think most people consider to be positive for Canada,” he added.
“None of us were hoping to go back into that dynamic again, but Donald Trump has decided that we are going to, and one of the things that gave me, and the industry comfort is we’re going back in with the winning quarterback.”
While Volpe acknowledged that Trudeau appears to understand how to handle Trump — pointing to Trudeau’s visit to Mar-a-Lago when Trump threatened 25 percent tariffs — he argued that the prime minister should not act as Canada’s chief trade negotiator.
Goldy Hyder, president and CEO of the Business Council of Canada, raised further concerns about Freeland’s resignation, questioning “whose interests the federal government is looking out for.”
Hyder called it “deeply troubling” that Freeland would highlight “costly political gimmicks” while federal finances remain “severely strained.”
His comments follow the government’s implementation of a two-month GST break on select goods, which began Saturday but received limited support from consumers and businesses.
Freeland’s departure also disrupted plans for the Liberal government to release its fall economic update on Monday.
“Canadians have a right to know the country’s fiscal picture, and businesses need the facts,” Hyder said.
“How has the government spent taxpayers’ money? How large is the deficit? The country is facing significant economic headwinds over the coming weeks ... We must put the national interest above all else and ensure the country is operating from a position of strength, not weakness.”
Freeland’s resignation has created uncertainty in the markets, said Tu Nguyen, economist at RSM Canada. In an online statement, she noted the Canadian dollar dropped to its lowest level in over four years — a low not seen since the middle of the COVID-19 pandemic.
“Although the impact on the financial markets has been moderate, an event like this could contribute to Canada’s challenge to attract foreign investments in 2025, when a Trump administration comes with trade policy uncertainty with Canada,” Nguyen stated.
Benjamin Bergen, president of the Council of Canadian Innovators, said Freeland’s resignation highlights ongoing instability in the government.
“Confidence in the government’s economic management is already low, and today’s chaos only reinforces that view,” he said.
Bergen added that businesses require “stable, consistent leadership,” which Freeland’s departure has called into question.
