Trudeau says Canada must think ‘tactically and strategically' on dealing with Trump's tariff threats

VANCOUVER, British Columbia (AP) — Prime Minister Justin Trudeau said Friday that Canada must think "tactically and strategically" on how to deal with U.S. President Donald Trump's threats to impose hefty tariffs on all Canadian imports.

Speaking in Toronto at the opening of a one-day summit on the Canada-U.S. economic relationship, Trudeau told the gathering of trade, business and labor experts the country must work with the U.S. to avoid tariffs.

He also said Canada needs to eliminate internal trade barriers and expand its trade with other nations.

“This is a moment,” said Trudeau. “This is a time in our country’s history that really matters.”

Later, local media reported that Trudeau told business leaders at the summit that Trump's comments to make Canada the 51th state are "a real thing."

“Mr. Trump has it in mind that the easiest way to do it is absorbing our country and it is a real thing. In my conversations with him on…,” Trudeau said, before the microphone cut out, Canada’s public broadcaster CBC reported.

Trump on Monday agreed to a 30-day pause on threats to impose 25% tariffs on imports from Mexico and Canada, with another 10% tariff on Canadian oil, natural gas and electricity.

Trump had threatened the tariffs to ensure greater cooperation from the countries to stop illegal immigration and prevent fentanyl smuggling, but he has also pledged to use tariffs to boost domestic manufacturing and raise revenues for the federal government.

Trudeau said Canada can use the 30-day extension to show U.S. officials the country's increased spending on border security. Canada has announced a $1.3 billion Canadian dollars ($900 million) border security plan that includes drones, helicopters, more border guards and the creation of a joint task force.

Trudeau also has promised to appoint a new fentanyl czar, who will serve as the primary liaison between the Canadian and U.S. governments, even though less than 1% of the fentanyl and illegal immigrant crossings into the U.S. come from Canada.

“We need to be very deliberate about how we continue to engage closely with the United States to make the case that Canada is responsible for a tiny part of the North American fentanyl problem, but that we are also bitterly touched by this tragedy,” Trudeau said.

He added that Canada needs to be prepared if Trump decides to go ahead with the tariffs after 30 days.

“We need to be ready to respond robustly,” he said. “We also have to be ready to support Canadians through the responses we’re giving and through a difficult time of tariffs.”

Canada had planned to retaliate to the U.S. action with 25% tariffs on $155 billion Canadian dollars ($109 billion) worth of American goods.

Trudeau said it’s also time to have “genuine free trade in Canada,” while strengthening its trade relationships with other countries.

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said she is happy the meeting is focused on internal trade, trade diversification and responding to U.S. tariffs.

“It’s clear that we can’t just tinker around the edges with incremental steps right now," she said. "We’ve got to be bold so that businesses and communities can pivot to be more resilient and less reliant on what happens in the U.S.,” Laing said in a statement.

The summit is being hosted by the government’s newly created advisory council on Canada-U.S. relations, and includes business and labor leaders, Indigenous leaders and public policy experts. Several federal cabinet ministers are also attending.

Joining the Canadian Chamber of Commerce are representatives from the Global Automakers of Canada, the Federation of Canadian Municipalities and Canadian Manufacturing and Exporters plus the National Chief of the Assembly of First Nations Cindy Woodhouse Nepinak.

Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, said he intends to tell the government that if tariffs are imposed, businesses and workers will need help in the form of direct government relief, tax relief or wage subsidies.