Canada's Finance Minister Chrystia Freeland has resigned from her post, citing disagreements with Prime Minister Justin Trudeau on how to respond to incoming President Donald Trump's threat of tariffs.

She announced her resignation in a letter to Trudeau on Monday, in which she said the two have been "at odds about the best path forward for Canada", and pointed to the "grave challenge" posed by Trump's policy of "aggressive economic nationalism".

Freeland said the decision comes after Trudeau informed her last week that he no longer wanted her to be his government's top economic adviser.

Her resignation came hours before she was due to provide an annual fiscal government update in parliament.