Freeland quits: Dominic LeBlanc sworn in as Finance Minister

Here are some key numbers from the fiscal update released on Monday.

The deficit for the fiscal year ended in March came in at $61.9 billion, blowing past the government’s original projection, according to Reuters.

Part of that is because the government expects to record expenses of approximately $16.4 billion related to Indigenous contingent liabilities and $4.7 billion related to the COVID-19 pandemic.

Without booking these expenses, the deficit would have been roughly $40.8 billion, Reuters said, still higher than the government forecast of $40 billion.

The list of Liberal Members of Parliament calling on Trudeau to resign has grown.

Patrick Weiler, MP for West Vancouver—Sunshine Coast—Sea to Sky Country, released a statement on Monday reiterating his previous call asking the Prime Minister to step down.

“Today’s developments only reinforce this call,” Weiler wrote.

“It is clear that the Prime Minister has lost the confidence of members of caucus and increasingly much of the country. With so many important issues at hand here at home and abroad, this reality demands substantive change.”

MP Anthony Housefather also called for Trudeau to resign in an interview on CTV News on Monday.

Goldy Hyder, the president and CEO of the Business Council of Canada, said Freeland’s resignation statement “brings into question whose interests the federal government is looking out for.”

“It is deeply troubling that the former finance minister believes the government is opting for ‘costly political gimmicks’ at a time when federal finances are severely strained,” Hyder said.

“Canadians have a right to know the country’s fiscal picture, and businesses need the facts. How has the government spent taxpayers’ money? How large is the deficit? A lack of transparency erodes confidence and delays investment decisions.”

Hyder said the country “needs stable and credible leadership that recognizes the seriousness of the moment.”

Flavio Volpe, the head of the Automotive Parts Manufacturers’ Association, said Freeland’s resignation means Ottawa is now missing its “most experienced and competent hand we have in Canada-U. S. relations at the time when we need it the most.”

Volpe worked with Freeland during the renegotiations of NAFTA during President Donald Trump’s first term in office. He said to the Canadian Press that Freeland brought a “steady hand” and a willingness to involve industry stakeholders in talks.

“Big loss on our way into round two with a weaker hand,” Volpe said on X.

While plans were thrown into chaos following Freeland’s resignation, the Liberal government will still unveil a fall economic update on Monday in the House of Commons, the Canadian Press reports.

A senior government source, who was not authorized to speak publicly about the plans, told the Canadian Press that a cabinet minister will present the update in Parliament, although it is not clear who that will be. The source noted that it does not have to be the finance minister.

Federal NDP leader Jagmeet Singh joined the chorus of opposition leaders saying that Prime Minister Justin Trudeau should resign on Monday.

Singh did not say whether he would vote against the government in a confidence vote, saying instead, “all options are on the table.”

Bloc Québécois leader Yves-François Blanchet spoke to reporters in Ottawa on Monday and said the government is “completely dysfunctional” and incapable of functioning.

“It’s very, very simple. The government of Justin Trudeau is finished. It’s over,” he said in French on Monday. He also said Trudeau should dissolve parliament and call an election now.

Ontario Premier Doug Ford, who has had a close relationship with Chrystia Freeland, said he spoke to her on Monday, putting her on speakerphone at the Council of the Federation meeting with the country’s premiers on Monday.

“I just wanted to thank her for her service… I want to wish her all the best,” Ford said.

“But as a country, we have to project strength and unity…. It’s chaos right now up in Ottawa. It’s time to do what we do every single day (as) premiers. We step up and we’ll make sure that we tell the world there is stability here, there is certainty here in Canada.”

Ford also said “there is no greater risk to our economy right now than the threat of U.S. tariffs.”

“We need a full Team Canada approach. That means the federal government needs to do better engaging premiers as it deals with the threat of tariffs, with regular meetings with the Prime Minister and whoever is on his team that takes a role in U.S. relations,” Ford said.

Mount Royal MP Anthony Housefather writes that he has asked the Liberal Party caucus chair to convene a national caucus meeting within the next 24 hours.

Chad Collins, who represents the Ontario riding of Hamilton East–Stoney Creek, revealed today that was among 24 Liberal MPs who signed a letter to Trudeau asking him to step down in October. The letter was presented to the prime minister at a tense caucus meeting on Oct. 23, and while confirmed by media, the names on the letter were unknown at the time.

Collins has now gone public as a signatory and is repeating his demand today.

One economist says Freeland’s resignation “highlights the increasing uncertainty in the country’s political environment that inevitably impacts its financial outlook.”

Tu Nguyen, an economist with assurance, tax and consultancy firm RSM Canada, noted in a statement that the Canadian dollar initially slipped on Monday and bond yields inched up following the release of Freeland’s resignation letter.

“Freeland’s resignation is the latest in a series of events that add uncertainty in Canadian markets; shortly before her announcement, Immigration Minister Sean Fraser, another high-visibility minister in the Liberal cabinet, said he would not seek re-election,” Nguyen said.

“Although the impact on the financial markets has been moderate, an event like this could contribute to Canada’s challenge to attract foreign investments in 2025, when a Trump administration comes with trade policy uncertainty with Canada.”

Conservative leader Pierre Poilievre, speaking at a press conference in Ottawa on Monday, said the Government of Canada is “spiralling out of control.” He suggested that the government should still table the fiscal update that was scheduled for later this afternoon, and treat it as a confidence vote of the Trudeau government.

“Trudeau should introduce the fiscal economic update this afternoon and allow for a vote this evening to allow the House of Commons to determine whether they have confidence in the government or not,” Poilievre said.

“If not, we will have an election so we can restore control of this country.”

In a post on X, the former president and CEO of the Canadian Chamber of Commerce points out that Freeland ran the Cabinet Committee on Canada-U.S. Relations and led trade negotiations last time. “The chaos in Ottawa will encourage Donald Trump to step up pressure.”

Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), said in a statement on X that while they disagreed often, Freeland “was easily the most accessible federal or provincial Finance Minister I’ve worked with in my 30+ years CFIB career.”

“She listened carefully, challenged back and remembered my arguments from conversations months earlier. She also worked to find solutions where she could and was clear when she couldn’t,” Kelly said.

“She gave time to small business owners and participated in regular webinars with CFIB members. Unlike many in her govt, she did not get fussed or cut off access when we publicly and sharply criticized her decisions.”

Conservative leader Pierre Poilievre is holding a press conference after the surprise resignation of Finance Minister Chrystia Freeland.

“Justin Trudeau has lost control, but he is hanging on to power,” Poilievre said in French at the press conference.

“All this chaos, all this division, all this weakness is happening as our largest neighbour and closest ally is imposing 25 per cent tariffs.”