Why it’s important

Trump says he will impose 25% tariffs on all Canadian imports unless Ottawa boosts border security.

On Tuesday, the president-elect floated the idea of turning Canada into a US state.

Trudeau said this week there was not “a snowball’s chance in hell” that Canada would become part of the US.

Key quotes

“The prime minister emphasised the importance of a stable and predictable business environment and the concerning impacts that proposed US tariffs on Canadian products would have on Canadians and Americans alike,” Trudeau’s office said late today.

“He emphasised that tariffs only raise prices, discourage growth and investment, and negatively affect financial markets, stressing the importance of continued free trade and the free flow of goods and services,” the office added.

A tariff on goods crossing the border “would have negative impacts for both Canada and the US,” Trudeau told business leaders, according to his office.

The prime minister met Jay Timmons, the CEO of the National Association of Manufacturers, and Joshua Bolten, the CEO of the Business Roundtable, a body that counts over 200 CEOs as members.

Context

Trudeau announced on Monday that he will step down in the coming months after nine years in power, bowing to pressure from lawmakers alarmed by his Liberal Party’s miserable showing in pre-election polls.

While Trudeau enjoyed good relations with Democratic President Joe Biden and former President Barack Obama, his relations have at times been tense with Trump, who has been critical of the Canadian leader.