Crisis in Ottawa: Finance Minister Resignation Sparks Concerns

Chrystia Freeland's unexpected resignation as Canada's finance minister disrupts Ottawa's stability just before a new U.S. administration threatens sanctions. Freeland opposed PM Trudeau's spending plans, fearing economic vulnerabilities. Unrest grows within the Liberal Party, calling for leadership changes as Canada braces for policy challenges under President-elect Trump.

Chrystia Freeland's sudden resignation as Canada's finance minister has left the government in disarray, only weeks before the inauguration of a new U.S. administration that threatens severe economic sanctions. Freeland stepped down after Prime Minister Justin Trudeau proposed a reduced role for her, citing concerns over his spending plans amidst potential U.S. tariffs.

The departure has exacerbated tensions in Ottawa, with provincial leaders alarmed by the absence of leadership in managing Canada-U.S. relations during this critical period. Ontario Premier Doug Ford and Alberta Premier Danielle Smith expressed their concerns about the federal government's lack of coherent strategy, fueling calls for political stability.

As Liberals gather frustrated over Trudeau's leadership, pressure mounts for a change, particularly with an election looming in October 2025. The role of chief federal coordinator for U.S. relations now passes to newly appointed finance minister Dominic LeBlanc as Canada readies to navigate complex diplomacy with the new U.S. administration.

(With inputs from agencies.)