Canadian Prime Minister Justin Trudeau stated at a business gathering last Friday that U.S. President Donald Trump's threat to annex Canada "was real." Two Canadian business leaders who were present at the time confirmed this statement to CNN. Trudeau's remarks were initially reported by the Toronto Star, which noted he believed the media had been escorted out, thus the microphone was live.
According to a recording of the Canada-U.S. Economic Summit in Toronto shared by CBC News, Trudeau said: "Mr. Trump thought that the easiest way was to simply annex our country, and that is real. In conversations I have had with him..." before the microphone was cut off. It was reported that Trudeau made the comments after delivering opening remarks at the summit, after reporters had left the room.
In an interview with CNN before Trump's inauguration, Trudeau suggested that Trump's comments about turning Canada into the 51st U.S. state were merely intended to distract from the consequences of Trump's tariff threats. He added that Canada becoming another state of the U.S. "is not going to happen." Trudeau said in an early January interview on CNN's "The Lead with Jake Tapper": "Canadians are incredibly proud to be Canadian. One of the easiest ways we define ourselves is that we are not Americans."
Trudeau also stated: "President Trump is a very skilled negotiator, and he got people to a certain extent distracted by this (annexation) conversation, which distracted from the discussion about 25% tariffs on oil, gas, electricity, steel, aluminum, lumber, and concrete." Last week, Trump made good on his threat to impose tariffs on Canada, announcing new 25% tariffs on most Canadian goods imported into the U.S. However, after Trudeau pledged to bolster Canadian border security, Trump announced a pause on the proposed tariffs for at least a month.
Following a call with Trump, Trudeau said Canada would implement a previously announced $2 billion CAD border plan and pledged to appoint a "fentanyl czar" and designate drug cartels as terrorists. He added that Canada needed to be prepared if Trump decided to proceed with the tariffs after 30 days. "We need to be ready to respond strongly," he said. "We also have to be ready to support Canadians through the difficult times that our response and the tariffs will bring." Canada had previously planned to impose 25% tariffs on $155 billion CAD ($173 billion AUD) worth of U.S. goods in retaliation for the U.S. actions.
Trudeau stated that now is also the time to achieve "real free trade" within Canada, while also strengthening trade relationships with other countries. Candace Bergen, President and CEO of the Canadian Chamber of Commerce, said she was pleased that the summit focused on domestic trade, trade diversification, and responding to U.S. tariffs. "It's clear that we can't just tinker around the edges anymore," she said in a statement. "We must be bold so businesses and communities can transform, become more resilient, and reduce their dependence on what happens in the United States."
The summit was hosted by the government's newly formed Advisory Council on Canada-U.S. Relations and included business and labor leaders, Indigenous leaders, and public policy experts. Several federal cabinet ministers also attended the meeting. In addition to the Canadian Chamber of Commerce, the Canadian Vehicle Manufacturers' Association, the Federation of Canadian Municipalities, Canadian Manufacturers & Exporters, and Assembly of First Nations National Chief Cindy Woodhouse Nepinak also sent representatives.
Dennis Darby, President and CEO of Canadian Manufacturers & Exporters, said he intends to tell the government that businesses and workers will need government assistance in the form of direct government relief, tax breaks, or wage subsidies if tariffs are imposed.