Canada's Finance Minister Chrystia Freeland resigned, citing differences with Prime Minister Justin Trudeau and his approach to policy towards the United States.

Freeland's resignation comes amid Trudeau's declining approval ratings and internal party opposition, as well as the prospect of a trade war with the United States.

The fiscal deficit for Canada for the year ended March was C$61.9 billion, which was 50 percent more than projected, missing one of Freeland's key fiscal objectives.

Trudeau's government is facing pressure to respond to US President-elect Donald Trump's threat of imposing tariffs on Canadian goods.

Trudeau's Liberal Party is preparing for elections that must be held before the end of October next year, with the possibility of a new election if the allied New Democratic Party withdraws its support.