Justin Trudeau Picks Dominic LeBlanc as Canada FM After Chrystia Freeland Resigns Amid Clash

Ottawa: Prime Minister Justin Trudeau has named Dominic LeBlanc as Canada’s new Finance Minister, hours after Chrystia Freeland’s sudden resignation sent shockwaves through Ottawa. Freeland’s sharp criticism of the government’s economic strategy—especially its lack of preparedness for Donald Trump ’s potential return—has left Trudeau’s leadership under intense scrutiny.  

LeBlanc, a veteran minister and Trudeau loyalist, was sworn in during a late afternoon ceremony. He replaces Freeland at a time when Canada faces rising economic challenges, including a growing deficit and the looming threat of US tariffs.  

LeBlanc, 57, was sworn in during a late afternoon ceremony in Ottawa. A close ally of Trudeau, LeBlanc has held several critical cabinet positions since Trudeau came to power in 2015. Until now, he served as Canada’s Public Safety Minister, handling border security, particularly after Trump threatened 25% tariffs on Canada and Mexico. His close ties to Trudeau were evident when the Prime Minister took him along to Florida last month for a meeting with Trump at Mar-a-Lago, following the former US President’s tariff threats on Canada and Mexico.  

Speaking to reporters after taking charge, LeBlanc acknowledged the pressing economic issues facing Canadians. “We understand that cost of living for a huge, huge number of Canadians is a very significant issue,” he said. “That’ll obviously be a huge focus in my work as the minister of finance.”  

He also highlighted concerns about Trump’s return to power and its economic consequences. “We need to also be extremely focused on the challenges that the incoming American administration will pose with respect to the potential imposition of tariffs,” LeBlanc added.  

Freeland’s Resignation Disrupts Government Operations

Freeland, who held the Finance Minister post since 2020, announced her resignation through a morning social media post. Her exit came just hours before she was to present Canada’s fiscal and economic update, throwing government operations into chaos.  

Finance department officials, who had already prepared budget documents for release, were left scrambling. Initially withheld, the documents were later released, revealing troubling fiscal trends. The deficit for the year ending March surged by over 50% to C$62 billion ($43.5 billion), while the current year’s shortfall is now projected to reach C$48.3 billion—20% higher than earlier estimates.  

In her resignation letter, Freeland took aim at Trudeau’s fiscal policies, warning against unnecessary spending and urging a stronger focus on the economic challenges ahead. “Our country today faces a grave challenge,” she wrote. “We need to take that threat extremely seriously. 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.”  

Freeland’s resignation has intensified political unrest in Canada. Prime Minister Trudeau is now facing mounting pressure from opposition leaders and even from within his own party. Jagmeet Singh, leader of the New Democratic Party (NDP), urged Trudeau to step down. Conservative Leader Pierre Poilievre, seen as the frontrunner for the next election, demanded that parliament be dissolved and fresh elections be called.