Canada government adrift after finance minister resigns, Trump tariffs loom
Freeland resigns over Trudeau's spending plans amid U.S. tariff threats
Ontario and Alberta premiers criticize Ottawa's response
Dominic LeBlanc takes over as finance minister amid political uncertainty
Trump says Freeland 'will not be missed'
Adds Trump comment in paragraphs 16-17
By David Ljunggren
OTTAWA, Dec 17 (Reuters) -The abrupt resignation of Canada's finance minister leaves the government adrift less than amonth before the inauguration of a new U.S. administration that could impose crippling sanctions on Canadian exports.
Chrystia Freeland quit on Monday after Prime Minister Justin Trudeau offered her a lesser position. She said his wish to increase spending could endanger Canada's ability to withstand the damage done by the tariffs that U.S. President-elect Donald Trump is threatening to impose.
Freeland had headed a special cabinet committee on Canada-U.S. relations and was working closely with the 10 provinces to ensure a united response.
"As a country we have to project strength and unity, and it's chaos right now up in Ottawa," Ontario Premier Doug Ford said after a scheduled online conference call of provincial premiers on Monday to discuss the U.S. threat.
An unimpressed Alberta premier, Danielle Smith, one of Trudeau's biggest domestic critics, said the provincial leaders had only learned halfway through their call that the point person on Canada-U.S. relations had quit.
"It's chaos. I'd be looking at this wondering who the next leader is ... are they going to be able to bring forward a coherent plan? Is there going to be a team that is able to do a Team Canada approach?" she said.
"It's not the greatest time to have a vacuum," she added, calling for a national election to help restore stability.
Unhappy legislators from the ruling Liberal Party, some of whom have been calling on Trudeau to quit for months, met on Monday in Ottawa to vent their frustration.
The Liberals are trailing badly in the polls ahead of an election that must be held by late October 2025. Trudeau has until now ruled out the idea of resigning but if pressure on him mounts significantly, the results could be unpredictable.
"Trump will be inaugurated in 34 days. Canada must have a stable government," former Trudeau foreign policy advisor Roland Paris said in a post on X.
When Trump came to power in 2017 he vowed to tear up the trilateral free trade treaty with Canada and Mexico. Freeland, who was then foreign minister, played a large role in helping renegotiate the pact and saving Canada's economy, which is heavily reliant on the United States.
Vincent Rigby, a former national security and intelligence adviser to Trudeau, said Freeland's departure meant the Canadian stance with Trump was up in the air.
"This is going to be quite problematic for the prime minister from a political perspective, but it's now also going to be problematic in terms of how the Canadian government deals with an incoming Trump presidency," he said on the sidelines of an event in Washington.
The role of chief federal coordinator on U.S. relations now passes to Dominic LeBlanc, the new finance minister, who flew with Trudeau to Florida late last month to meet Trump.
"The one thing I think the American administration will respect is a government that's focused on our common priorities, on the shared issues," he told reporters after being appointed.
Freeland was not invited along. Trump, who made it clear during trade talks in September 2018 that he did not like Freeland, cheered her departure late Monday.
"Her behavior was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada. She will not be missed!!!" he wrote on his social media platform.
Additional reporting by Nia Williams, Ryan Jones, Andrea Shalal, Ismail Shakil and Susan Heavey; Editing by Chris Reese and Louise Heavens
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.