Canada's Finance Minister Chrystia Freeland resigned unexpectedly, citing a policy disagreement with Prime Minister Justin Trudeau over his plans for increased government spending. Her departure happens just hours before presenting a crucial economic update.

Canada’s Finance Minister Chrystia Freeland unexpectedly resigned due to disagreements with Prime Minister Justin Trudeau, criticizing his proposed spending increases as "political gimmicks."

Her resignation came just hours before she was scheduled to present a fall economic update, which was expected to reveal a larger-than-anticipated budget deficit for 2023/24 under the minority Liberal government.

Freeland, 56, who also served as deputy prime minister, stepped down, leaving Trudeau without an important ally in his cabinet as polls suggest his party may face a heavy loss in the upcoming election.

In her resignation letter posted on X, Freeland stated, "For the last number of weeks, you and I have found ourselves at odds over the best path forward for Canada."

Freeland had served as finance minister since August 2020. Trudeau’s office did not immediately respond to her departure.

Reports indicated that Freeland and Trudeau had disagreed over proposals for temporary tax breaks and additional spending measures.

To fill the role, Trudeau appointed his close ally, Dominic LeBlanc, the public safety minister, who had recently joined him at a dinner with Donald Trump at Mar-a-Lago.

LeBlanc, after being sworn in, emphasized that he and Trudeau are prioritizing addressing the rising cost of living for Canadians and strengthening ties with Trump on issues like border security and economic policies.

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