OTTAWA − The sudden resignation of Canada’s finance minister has left Prime Minister Justin Trudeau’s administration in a precarious situation just weeks before President-elect Donald Trump takes office, a leader who has threatened harsh tariffs on Canadian exports.

Chrystia Freeland stepped down on Monday after being offered a diminished role. She expressed concerns that Trudeau’s desires to boost spending could jeopardize Canada’s capacity to cope with the potential fallout from Trump’s anticipated tariffs.

Freeland had led a dedicated cabinet group focused on Canada-U.S. relations and was collaborating with all ten provinces to ensure a synchronized approach to the challenges ahead.

“Canada needs to present a strong, unified front, but there’s chaos in Ottawa right now,” said Ontario Premier Doug Ford following an online discussion with fellow provincial leaders about the U.S. threat.

‘Chaos’

Alberta Premier Danielle Smith, a prominent critic of Trudeau, noted that provincial leaders were only made aware of Freeland’s resignation halfway through their call.

“It’s total chaos. I’m questioning who the next leader will be… will they have a solid plan? Will there be a team to tackle these issues together?” she remarked.

She added, “This isn’t an ideal moment for a leadership vacuum,” advocating for a national election to restore order.

Discontented members of Trudeau’s Liberal Party, many of whom have been pressing for his resignation for months, gathered on Monday in Ottawa to express their grievances.

The Liberals are significantly lagging in the polls ahead of an election set for late October 2025. While Trudeau has previously dismissed the idea of stepping down, escalating pressure could lead to unforeseen outcomes.

“Trump will take office in 34 days. Canada requires a government that can provide stability,” stated Roland Paris, a former advisor to Trudeau on foreign policy, in a post on X.

Back in 2017, when Trump first assumed the presidency, he aimed to dismantle the trilateral trade agreement with Canada and Mexico. At that time, Freeland, who was serving as foreign minister, played a crucial role in renegotiating the deal and protecting Canada’s economy, which relies heavily on its trade with the U.S.

Vincent Rigby, a former national security and intelligence advisor to Trudeau, emphasized that Freeland’s exit creates uncertainty regarding Canada’s position with Trump.

“This presents a serious challenge for the prime minister politically, and it complicates how the Canadian government will engage with the incoming Trump administration,” he remarked during an event in Washington.

The responsibility for U.S. relations now shifts to Dominic LeBlanc, the newly appointed finance minister, who accompanied Trudeau to Florida last month to meet with Trump.

“The American administration is likely to appreciate a government focused on our mutual interests and shared challenges,” he told reporters post-appointment.

‘Totally toxic’

Freeland was notably absent from the meeting. Trump, who made his dislike for Freeland evident during trade discussions in September 2018, celebrated her resignation late on Monday.

“Her conduct was completely toxic, and not at all helpful in forging beneficial agreements for the discontented people of Canada. She will not be missed!!!” he proclaimed on his social media platform.