Finance Minister Chrystia Freeland made a surprise declaration Monday that she's making her exit from cabinet, pointing to an internal dispute with the prime minister over the path forward.

It comes just as she was set to deliver the fall economic statement in the wake of Donald Trump's November election.

That news landed just as Housing Minister Sean Fraser was holding a news conference to announce he will not be seeking re-election, citing a need to be closer to his family.

Rumours of a cabinet shuffle have been swirling in Ottawa after several cabinet ministers announced they won't be running in the next campaign, but this major shock to the system ensures the prime minister will have to act soon to shore up his front bench.

Trudeau's Liberals have trailed behind Pierre Poilievre's Conservative party for more than a year now as an affordability crisis grips the nation.

That's put the Trudeau government on track to lose power in the next election, expected sometime next year, unless something changes to improve his party's fortunes.

Fraser is seen internally as a good communicator and a top performer in cabinet -- his name has even been floated at times in speculation as someone who could one day replace Trudeau.

Fraser had held several parliamentary secretary roles before he was named immigration minister. He was later tapped to lead the hot housing file as the Liberal government faced criticism for failing to address an acute shortage of affordable homes.

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