Trudeau acknowledges facing a 'successful negotiator' as he says the 51st state is a distraction from Trump's tariff threat.

Justin Trudeau, Canada's outgoing Prime Minister, stated that Trump's proposal to make Canada America's "51st state" was a diversion from the tariff threat.

"As a successful negotiator, Trudeau likes to keep people a little off balance. The 51st state is not going to happen, according to Trudeau. Canadians are proud of being Canadian, but the focus should be on the impact of 25% tariffs on steel and aluminum coming into the United States, energy, whether it's oil and gas or electricity, rather than discussing the possibility of a 51st state."

According to Trudeau, Americans are not willing to pay 25% more for electricity and oil and gas from Canada, as stated in an interview with Psaki. He emphasized the need to pay attention to this issue and warned that it could harm the trading relationship with Canada. On the other hand, Trump has threatened to impose 25% tariffs on all Canadian imports, while the president-elect has suggested that if Canada merged with the U.S., taxes would decrease and there would be no tariffs.

The president-elect has criticized Trudeau, calling him the "governor" of Canada. On Monday, Trudeau announced that he would step down as Canada's prime minister on March 9 after his Liberal Party selects a new leader.

"Since our initial conversations in 2016, Trump has consistently expressed his admiration for Canada and appreciation for us, which is a form of flattery that acknowledges our greatness. While we are proud of being Canadian, we also recognize that we are not Americans. If you ask any Canadian to define what it means to be Canadian, they will mention our distinct identity and our pride in being Canadian."

During his visit to Mar-a-Lago in November, Trudeau discussed the possibility of the U.S. annexing Canada with Trump. However, Trudeau joked that Canada could annex Vermont or California as a trade-off. Trump found the joke unfunny and the conversation moved on. Despite this, Trudeau emphasized the need to focus on the potential consequences of Trump's decision to impose tariffs that would increase the costs of goods for American citizens. He also mentioned the need for a robust response to this action.

Trudeau stated that we are prepared to impose tariffs if required.

If Trump imposes tariffs, Canada may retaliate with tariffs on American orange juice, toilets, and steel products, according to Canadian officials.

During his first term, Trump imposed tariffs on steel and aluminum imports, prompting Canada to retaliate with tariffs on bourbon, Harley Davidson motorcycles, orange juice, playing cards, and other goods that Canadians could easily replace.

"President Trump's efforts to strengthen the U.S.-Canada border have resulted in significant losses for American businesses that rely on Canada as their primary export partner. As their number one export partner for about 35 U.S. states, any barriers that are put in place will negatively impact American citizens and jobs. While Trump's intentions may have been to improve the lives of all Americans and support American workers, these actions will ultimately harm them."

Trump stated last week that the U.S. does not require oil or anything else from Canada, but nearly a quarter of the daily oil consumption in the U.S. originates from Canada. Specifically, the western province of Alberta exports 4.3 million barrels of oil per day to the U.S., according to the Associated Press. According to data from the United States Energy Information Administration, the U.S. consumes 20 million barrels of oil daily and produces approximately 13.2 million barrels of oil daily.

Canada, a NATO partner and with a population of over 40 million, is the top export destination for 36 U.S. states, with nearly $2.7 billion in goods and services exchanged daily across the border.

If Canada improved its management of security at the Canada-U.S. border, Trump may reconsider his tariff threat, as seen by him and his advisors as a potential entry point for illegal immigrants.

According to Trudeau, less than 1% of illegal immigrants and fentanyl enter the U.S. from Canada.

After meeting with Trump at Mar-a-Lago, Trudeau announced an increase in spending on border security in an attempt to address Trump's concerns and persuade him to abandon his tariff threat. The Associated Press contributed to this report.