In a swift move following Chrystia Freeland’s resignation as Canada’s Finance Minister, Prime Minister Justin Trudeau appointed long-time ally Dominic LeBlanc to the pivotal role. The 57-year-old LeBlanc, who previously served as Public Safety Minister, now faces the daunting task of managing Canada’s finances amidst a growing Can$62 billion deficit—far exceeding initial projections. The Canadian economy is also grappling with various challenges, including the looming threat of tariffs from its largest trading partner, the US, which takes in 75% of Canada’s annual exports.

LeBlanc’s appointment marks a critical moment in Trudeau’s government as the country deals with mounting economic pressures. The Canadian government recently reported a deficit of C$61.9 billion for the 2023/24 fiscal year, much larger than expected, and political tensions are running high. Following Freeland’s resignation, which was linked to disagreements with Trudeau over budget spending and how to address potential US tariffs, questions about the stability of the Trudeau government have emerged.

LeBlanc, a senior figure in Trudeau's cabinet, is well-regarded for his role in shaping the country’s billion-dollar border program and his diplomatic efforts, including representing Canada in high-level talks with US President-elect Donald Trump. His new responsibilities include leading the Canada-US cabinet committee, a position once held by Freeland. LeBlanc’s swift appointment underscores the urgency of addressing economic and political challenges that are escalating as the government faces growing dissatisfaction with its fiscal policies.

Freeland’s sudden resignation has caused a political stir, with some speculating that the move signals deeper fractures within the Liberal Party, especially as Trudeau’s government faces mounting pressure from the opposition. The NDP, which has supported the minority government, indicated its willingness to bring a no-confidence motion against Trudeau next year, further deepening uncertainty around the Prime Minister’s leadership.