Canadian Prime Minister Justin Trudeau has dismissed Donald Trump's threats to use "economic power" to incorporate Canada into the United States, stating that a merger between the two countries is "absolutely not going to happen." Trump has repeatedly provoked Canada in the weeks since his election, suggesting it could become the 51st state of the U.S.
“If you get rid of that artificial line, look at what it would be, and it would be better for national security too. Canada and the U.S., that would be a really big deal,” Trump said at a press conference at Mar-a-Lago in Florida on Tuesday. He reiterated that he would impose "substantial" tariffs on Canadian goods unless Canada took steps to increase security on the U.S.-Canada border.
Meanwhile, Canada is facing political challenges. Trudeau announced his resignation on Monday, but will remain prime minister until the ruling Liberal Party elects a new leader, which is expected to be completed by the end of March. The Canadian Parliament has adjourned until March 24 to allow time for the leadership race. Economists have warned that if Trump imposes tariffs after taking office on January 20, it would severely damage the Canadian economy. According to Canadian government data, nearly C$3.6 billion ($2.5 billion) in goods and services cross the border daily in 2023.
Trudeau’s government has stated that they are considering retaliatory tariffs if Trump carries out his threats. The Prime Minister also said on X on Tuesday: “Workers and communities in both our countries benefit from being each other’s biggest trade and security partners.” In his lengthy press conference at Mar-a-Lago, Trump reiterated his concerns about drugs flowing into the U.S. from the Mexican and Canadian borders. Like Canada, Mexico is also facing a 25% tariff threat. U.S. data shows that far less fentanyl is seized at the U.S.-Canada border than at the southern border.
Canada has committed to implementing a series of new border security measures, including increased surveillance and adding a joint “strike force” to combat transnational organized crime. Trump said on Tuesday that he was not considering using force to incorporate Canada into the U.S., but expressed concerns about the neighboring country's military spending. “They have a small military. They rely on our military. That’s okay, but, you know, they have to pay for that. It’s not fair,” he said. Canada has been under pressure to increase military spending as its defense spending remains below the target set for NATO members. Canada’s current defense budget is C$27 billion ($19.8 billion, £15.5 billion), but the Trudeau government has committed to increasing spending to nearly C$50 billion by 2030.
British Columbia Premier David Eby said at a press conference on Tuesday that some Canadian premiers will soon travel to Washington, D.C., to lobby against possible tariffs. On Monday, the leader of Canada’s most populous province, Ontario, Doug Ford, said Trudeau must use his remaining time in office to work with the provinces to address Trump’s threats. “The premiers are leading the country right now,” he said in an interview with BBC News. Ontario is heavily reliant on trade with the U.S. The province is the center of Canada’s highly integrated auto industry, and trade between Ontario and the U.S. exceeded C$493 billion ($350 billion) in 2023.
“My message is, let’s work together to build a stronger trade relationship, not weaken it,” Ford said. He warned that they would “hit back hard” if the Trump administration took action and highlighted the close economic ties between the two countries, including in energy. He said the U.S. “relies on power from Ontario. We power 1.5 million homes and businesses in the United States.” In a press conference earlier this week, Ford also rebutted Trump’s comments about a 51st state. “I’ll give him a counter-offer. How about we buy Alaska, and throw in Minneapolis and Minnesota at the same time?” Ford said.