Finance Minister Chrystia Freeland has resigned from cabinet, the day she is set to present the fall economic statement.
In a resignation letter posted to social media, she says Prime Minister Justin Trudeau offered her another role in cabinet Friday, but that the only "honest and viable path" is to leave cabinet.
In the letter, which was addressed to Trudeau, Freeland said she and the prime minister have found themselves at odds about the best path forward for Canada.
"To be effective, a minister must speak on behalf of the prime minister and with his full confidence. In making your decision, you made clear that I can no longer credibly enjoy that confidence and possess the authority that comes with it," she said in the letter.
The Globe and Mail has reported that Trudeau has been working to recruit former Bank of Canada governor Mark Carney to join cabinet amid rising tensions with Freeland.
She says Canada faces a grave challenge with the incoming Trump administration and its threat of tariffs.
She says the government needs to take the threat seriously and that means "eschewing costly political gimmicks."
The government's move to offer a two-month GST break on certain goods over the holidays has received lukewarm support from consumers and businesses.
She says she is committed to running again for her seat in the next federal election.
This report by The Canadian Press was first published Dec. 16, 2024.