Trudeau has made it clear that Canada will not be a part of the U.S. He has termed the annexation idea impossible. He also says Canada will defend itself if Trump follows through with the tariffs.

Donald Trump in Mar-a-Lago, Palm Beach. Photo Credit: Associated Press.

On Wednesday, Justin Trudeau, Prime Minister of Canada, responded to comments from Donald Trump about annexing Canada. Annexing is when one country or state takes control of another. Trudeau said it was just a way for Trump to divert attention away from the real issue of tariffs.

The U.S. President-elect Trump wants to slap tariffs—extra taxes on goods—on all Canadian products unless Canada ups its border security. He also suggested he might use economic power to bring Canada under U.S. control. The idea sent shockwaves among many.

Trudeau said on CNN that he believes the President is a good negotiator and that these annexation remarks were not serious, just a line of distraction. The real focus, he said, needs to be on how those tariffs will affect the people.

Why the Tariffs Matter

If Trump slams on tariffs, many goods from Canada will become more expensive for Americans, including steel, aluminum, and lumber-a staple of construction and manufacturing. Trudeau said the higher costs will hit American businesses and families.

He also underlined that Canada is a very close trading partner of the United States. The two very much rely on one another in producing various goods or components of goods, so to speak. Trudeau warned of the consequences such potential measures would have by denting a hard-earned, closely-woven economic relationship between the two countries.

Response of Canada to the Tariff Threats

Trudeau had clearly said that Canada will not be bullied, and if Mr. Trump puts the tariffs, then it will defend itself. He issued a warning, reminding everyone of a similar situation in 2018. In that trade dispute, Canada put tariffs on various U.S. products such as ketchup, playing cards, motorcycles, and bourbon whiskey.

These actions were designed to hurt specific industries in the U.S., which showed Canada’s ability to respond. However, according to Trudeau, this is not desirable because it also affects the Canadian consumer.

“We don’t want to hurt our closest trading partner,” Trudeau said. “But we will defend our economy if need be.”

Annexation Idea Rejected

Trudeau firmly rejected Trump’s talk of annexing Canada, saying there was “not a snowball’s chance in hell” that this would ever happen. Trudeau emphasized that Canada is an independent country with a strong identity and will continue being so.

He labeled the annexation idea a mere distraction from the real issue, which is Trump’s proposed tariffs. Trudeau believes fair trade and trying to find ways to help both countries succeed is what should be focused on.

The Big Picture

This situation illustrates how fraught international trade can be. The likes of Trudeau and Trump have to balance their own country’s interests with their good relationship with their neighbors. For now, Trudeau isn’t budging. He hopes the issue could be resolved by cooperation, though he is ready to act unilaterally if necessary. The standoff represents a new generation of economic decisions where millions on either side of the border can be severely impacted.