8 January 2025

Canadian Prime Minister Justin Trudeau responded to Donald Trump's threat to use “economic might” to absorb Canada into the United States, saying there was no “snowball chance in hell” of the two joining.

On Tuesday, President-elect Trump reiterated his threat to impose 25% tariffs on Canadian goods unless the country takes steps to bolster security at the shared U.S. border.

Trump in recent weeks has repeatedly badgered Canada about becoming the 51st US state.

“Get rid of this artificially drawn line, take a look at what it would look like, and it would be much better for national security,” Trump said.

“Canada and the United States will be a real thing,” he said at a press conference at his residence in Mar-a-Lago, Florida.

The continued threat of tariffs comes at a politically challenging time for Canada.

On Monday, an embattled Trudeau announced he was resigning, though he would remain as prime minister until the ruling Liberals elect a new leader, expected sometime by late March.

Canada's Parliament has been adjourned — or suspended — until March 24 to allow time for the leadership race.

Economists warn that if Trump continues to impose tariffs after his inauguration on January 20, it will significantly harm the Canadian economy.

Nearly C$3.6 billion ($2.5 billion) in goods and services crossed the border daily in 2023, according to Canadian government figures.

Trudeau's government said it was considering imposing counter-tariffs if Trump carries out his threat.

The Prime Minister also said on the X programme: “Workers and communities in both our countries benefit from being each other’s largest trading and security partner.”

Trump on Tuesday reiterated his expressed concerns about drugs crossing the Mexico and Canada border into the United States.

Like Canada, Mexico faces the threat of 25% tariffs.

According to American data, the amount of fentanyl seized on the border between the United States and Canada is much less than it was on the southern border.

Canada has promised to implement a range of sweeping new security measures along the border, including strengthening surveillance and adding a joint “strike force” to target transnational organized crime.

Trump said Tuesday he is not considering using military force to make Canada part of the United States, but he raised concerns about its neighbour's military spending.

“They have a very small army. They depend on our army. It's all fine, but, you know, they have to pay for it. It's very unfair,” he said.

Canada is under pressure to increase its military spending as it continues to fall short of the target set for NATO members.

Its defense budget currently stands at C$27 billion (US$19.8 billion, £15.5 billion), although the Trudeau government has promised to increase spending to nearly C$50 billion by 2030.

Doug Ford, leader of Canada's most populous province, Ontario, said Monday that Trudeau should spend his remaining weeks in office working with provinces to address Trump's threat.

“Prime ministers are leading the country now,” he said.

Ontario relies heavily on trade with the United States. The province is at the heart of Canada's highly integrated automotive industry, and trade between Ontario and the United States will total more than C$493 billion ($350 billion) in 2023.

“My message is let's work together, let's build a stronger business relationship, not weaken it,” he said.

The prime minister warned that “we will respond strongly” if the Trump administration follows in its steps, and highlighted the close economic ties between the two countries, including in the energy field.

He said the United States depends “on Ontario for electricity. We continue to light up 1.5 million homes and businesses in the United States.”

At a press conference earlier this week, Ford also dismissed Trump's comments about the 51st state.

“I'll make him a counteroffer. What if we buy Alaska and buy Minneapolis and Minnesota at the same time?” Ford said.

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