'Found ourselves at odds': Canada's FM Chrystia Freeland resigns citing rift with PM Trudeau; read letter

Canada's Finance Minister Chrystia Freeland announced her unexpected resignation on Monday, citing differences with Prime Minister Justin Trudeau over the country's future direction.

Her resignation came just hours before she was scheduled to deliver a fall economic update to parliament. The update was anticipated to reveal that the Liberal government had significantly exceeded its planned 2023/24 budget deficit.

"For the last number of weeks, you and I have found ourselves at odds over the best path forward for Canada," Freeland said in a letter to Trudeau posted on X.

Freeland, widely regarded as one of Prime Minister Trudeau's closest allies in cabinet, also held the role of deputy prime minister.

According to domestic media reports, tensions had arisen between Freeland and Trudeau over proposed government measures, including temporary tax breaks and increased spending.

"On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the Cabinet," Freeland said in a letter addressed to Trudeau.

"Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet."

Read Freeland's resignation letter

Trudeau's office has yet to issue a response to Freeland's resignation.

One possible successor is Mark Carney, the former governor of the Bank of Canada, who currently serves as an economic advisor to Trudeau. However, Carney is not a sitting legislator, and tradition suggests he would need to win a seat in the elected House of Commons to take on the role.