Ottawa, Jan 14 (V7N)— Canada is preparing to respond to threats made by newly elected U.S. President Donald Trump, who has proposed a 25 percent tariff on Canadian imports. Trump also controversially suggested annexing Canada as the 51st state of the United States.

The threats were made during Trump's first address following his election victory, where he blamed Canada for illegal immigration and drug trafficking. Trump further mocked former Canadian Prime Minister Justin Trudeau, who resigned last week, referring to him as the "governor of the great state of Canada."

Economists and politicians in Canada have criticised Trump’s comments, labelling them as unfounded and disruptive. Douglas Porter, chief economist at the Bank of Montreal, expressed surprise, stating, "Such a statement was completely unexpected. It’s particularly disturbing given the historically amicable relations between the two nations."

Analysts noted that while Trump targeted China, Mexico, BRICS, and NATO during his campaign, Canada was not a frequent subject of criticism, making his recent statements all the more surprising.

The United States-Mexico-Canada Agreement (USMCA), implemented in 2020, now faces scrutiny. Trump claims that Canada and Mexico have failed to meet key terms of the agreement, including those related to border control and trade. The agreement is due for review next year, raising concerns about potential renegotiations.

Trade between the two countries is significant, with Canada being the largest market for U.S. exports. In the first 11 months of last year, trade amounted to $700 billion. U.S. exports to Canada include vehicles, auto parts, and fossil fuels, while over 75 percent of Canadian exports go to the U.S.

Canadian officials have yet to issue a formal response but are reportedly consulting trade experts and allies to counter any potential economic fallout. Political observers suggest that Canada may seek support from other trading partners and international organisations to address the threats.

As tensions escalate, many Canadians are urging the government to remain firm while continuing to advocate for the longstanding trade and diplomatic partnership between the two nations.

END/RH/AJ