He told Peston on Sunday that Philip Hammond's suggestion that United Kingdom relations with the European Union would change only "very modestly" after Brexit had caused "real trouble" for the Government - and were at odds with what Theresa May had previously pledged.
He told Sky News from the World Economic Forum in Davos: "There are people that want us to stay in the EU customs union - we reject that argument".
"This is why, during the implementation period, we are clear that the UK's and the EU's access to one another's markets should continue on current terms, meaning there will only be one set of changes at the end of the implementation period, as we move into our future partnership".
The comments triggered an immediate backlash, with leading Brexit-supporter Jacob Rees-Mogg saying he "profoundly disagreed" with the Chancellor's commnets. We can not get our product in.
"We are taking two completely interconnected and aligned economies with high levels of trade between them, and selectively, moving them, hopefully very modestly, apart", Hammond told political and business figures from around the world. "For the contribution it made to the ongoing debate", he said. "We have the same ideas, the same ideals", he said before turning to speak to May directly.
And arch Brexiteer Mr Rees-Mogg said such an approach by Brussels chiefs would be wholly unacceptable.
The show of unity comes after Prime Minister Theresa May rebuked Hammond for saying Britain would stay closely aligned to the bloc. "I would have had a different attitude", he said. "She needs to say to him: "You do that again and it will be your last comment as a cabinet minister". "All of that was very explicit in the manifesto signed up to by the government".
Now, as Brexit Secretary David Davis begins talks with the European Union over transition arrangements, the Prime Minister is, once again, distracted by the disloyalty of her colleagues.
Morgan confirmed the outlet's reporting by tweeting the story out and adding that Trump "has criticised Theresa May & the British Government for their handling of Brexit negotiations".
But he added: "If the Conservative Party doesn't deliver the Brexit that the British people voted for, the Conservatives will not win the next election". This faction of diehard Brexiteers is led by Boris Johnson, May's foreign secretary and possible challenger for the leadership of the Conservative Party.
Following a week of rumours regarding an increasing number of letters of no confidence in the Prime Minister being to sent to the chair of the 1922 committee of backbench Tory MPs, politicians in the party traded public blows, once again exposing the fragility of Ms May's administration.