(Update) Finance Minister Chrystia Freeland quits cabinet the day of fall economic statement

Finance Minister Chrystia Freeland has resigned from cabinet on the day she is set to present the government's fall economic statement. 

In a resignation letter posted to social media, she said Prime Minister Justin Trudeau offered her another role in cabinet on 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.

Freeland said in her letter that Canada faces a grave challenge with the incoming Trump administration and its threat of tariffs. 

She said 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. 

Freeland also said she is committed to running again for her seat in the next federal election.

Initial reaction from close Liberal colleagues was muted.

"I’ll just say that Chrystia Freeland is a good friend, someone I work with very, very closely," Treasury Board President Anita Anand said before a cabinet meeting.

"This news has hit me really hard and I’ll reserve further comment until I have time to process it."

Indigenous Services Minister Patty Hajdu wished Freeland the best. "These are difficult and deeply personal decisions."

This report by The Canadian Press was first published Dec. 16, 2024.