“Canada and the United States, that would really be something,” he said at a press conference at his Mar-a-Lago residence in Florida.
The ongoing tariff threat comes at a politically challenging time for Canada.
Trudeau announced on Monday that he was stepping down but would remain as prime minister until the governing Liberals elect a new leader, expected at the end of March.
Canada’s parliament has been suspended — or suspended — until March 24 to allow time for the leadership race.
Economists warn that if Trump imposes tariffs after his inauguration on January 20, it will significantly damage the Canadian economy.
Almost C$3.6 billion ($2.5 billion) worth of goods and services crossed the border daily in 2023, according to the Canadian government.
The Trudeau government has said it is considering retaliatory tariffs if Trump follows through on the threat.
The Prime Minister also told X that: “Workers and communities in both our countries will benefit from being each other’s largest trade and security partner.”
On Tuesday, Trump reiterated his concerns about drugs crossing the Mexican-Canadian border into the United States.
Like Canada, Mexico faces the threat of 25% tariffs.
According to the US, the amount of fentanyl seized at the US-Canada border is much smaller than at the southern border.
Canada has pledged to implement a series of sweeping new security measures along the border, including increased surveillance and the addition of a joint “task force” to fight transnational organized crime.
On Tuesday, Trump said he was not considering using military force to make Canada part of the United States, but raised concerns about its neighbor’s military spending.
“They have a very small army. They rely on our army. It’s all good, but, you know, they have to pay for it. It’s very unfair,” he said.
Canada is under pressure to increase its military spending as it continues to fall short of the target set for NATO membership.
Its defense budget is currently C$27 billion ($19.8 billion, £15.5 billion), although the Trudeau government has promised to increase spending to nearly C$50 billion by 2030.
On Monday, Doug Ford, the leader of Canada’s most populous province of Ontario, said Trudeau should spend his remaining weeks in office working with the provinces on Trump’s threat.
“Now the country is run by prime ministers,” he said.
Ontario is heavily dependent on trade with the US. The province is at the heart of Canada’s highly integrated automotive industry, with trade between Ontario and the United States expected to exceed C$493 billion ($350 billion) in 2023.
“My message is let’s work together, build a stronger trade relationship, not weaken it,” he said.
