Tensions Escalate Between Trudeau’s Office and Freeland Over Spending Policies

Disagreements over fiscal strategies, including a GST holiday and rebate plans, raise concerns about meeting deficit targets.

Prime Minister Trudeau's office and Finance Minister Chrystia Freeland are at odds over government spending priorities, including a GST holiday and proposed $250 rebate checks.
Freeland's department views these measures as fiscally unwise, with concerns they may exceed the $40.1 billion deficit cap she previously pledged to maintain.
The GST holiday has been approved in the House of Commons, but the rebate plan faces opposition demands for broader eligibility, leaving its future uncertain.
Internal Liberal Party sources describe the tensions as a mix of typical disagreements and more serious strains, drawing comparisons to past conflicts between Trudeau and former Finance Minister Bill Morneau.
Freeland is expected to deliver an economic update next week, which will confirm the fiscal deficit and address challenges such as U.S. trade tensions and opposition gridlock in Parliament.