In a stinging resignation letter, Freeland dismissed Trudeau's push for increased spending as a political gimmick that could hurt Ottawa's ability to deal with the 25% import tariffs US President-elect Donald Trump says he will impose.
Freeland quit just hours before she was due to present a fall economic update to parliament, a document widely expected to show the minority Liberal government had run up a much larger 2023-24 budget deficit than predicted.
The resignation by Freeland, 56, who also served as deputy prime minister, leaves Trudeau without a key ally when his government is already in trouble.
"This will likely trigger a leadership crisis within the Liberal caucus (it) is politically and personally devastating for Trudeau," said Nik Nanos, founder of the Nanos Research polling firm.
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