Canada's Finance Minister Chrystia Freeland resigns from Trudeau's cabinet ahead of economic update

In a statement to Trudeau, Freeland said that he no longer wants her to serve as Finance Minister and offered her another position in cabinet, leading to her resignation.

In a letter to Prime Minister Justin Trudeau posted to social media, Freeland said this decision came after Trudeau offered her another position.

She said that Canada faces a grave challenge with the incoming US administration led by Donald Trump and its threat of tariffs and added that the Canadian government needs to take the threat seriously

Expressing confidence that Canadians would recognize and respond to US' 'America first', she said: “They know when we are working for them, and they equally know when we are focused on ourselves."

“Inevitably, our time in government will come to an end. But how we deal with that threat our country currently faces will define us for a generation, and perhaps longer. Canada will win if we are strong, smart, and united.”

Freeland concluded by stating that it is with this conviction that she has been driven in her efforts this fall to manage the nation’s spending in a way that provides the flexibility needed to address the serious challenges ahead.

“I will always be grateful for the chance to have served in government and I will always be proud of our government’s work for Canada and Canadians,” she said.

“I look forward to continuing to work with my colleagues as a Liberal Member of Parliament, and I am committed to running again for my seat in Toronto in the next federal election.”

Speaking to reporters before a cabinet meeting on Monday, Treasury Board President Anita Anand called Freeland a “good friend.”

“Chrystia Freeland is… someone I worked with very, very closely as president of the Treasury Board and Minister of Transport. This news has hit me really hard and I’ll reserve further comment until I have time to process this report,” Anand said.

First elected to the House of Commons in 2015, Freeland at that time represented the Toronto riding of University-Rosedale.

She swiftly advanced within the Liberal Party, serving initially as minister of international trade, then as deputy prime minister, before being appointed minister of finance in 2020.

(Reporting by Asha Bajaj)