Trump's threat to merge Canada with US a distraction from high tariffs: Trudeau

Canadian Prime Minister Justin Trudeau on Thursday said that Donald Trump's suggestion of Canada becoming the United States' 51st province is to merely distract everyone from the "negative impacts" of President-elect's proposed hike in tariffs.

Referring to Trump's plan to impose 25% tariffs on Canadian imports, Trudeau told American business leaders that the economic move will be counter-productive for both economies. He said that Canadian products and services will become more expensive for US citizens, further driving inflation.

A hike in tariffs on imports "would have negative impacts for both Canada and the United States," Trudeau told business leaders, according to his office, as reported by news agency Reuters.

Shedding light on Trudeau's remarks, his office said, "The prime minister emphasised the importance of a stable and predictable business environment and the concerning impacts that proposed US tariffs on Canadian products would have on Canadians and Americans alike."

"He emphasised that tariffs only raise prices, discourage growth and investment, and negatively affect financial markets, stressing the importance of continued free trade and the free flow of goods and services," Trudeau's office further said, according to Reuters.

On Tuesday, Trump threatened to use "economic force" to turn Canada into US' 51st province. Earlier, Trump had also said that he will impose high tariffs on all Canadian imports unless Ottawa strengthens border security.

Replying to Trump's threat, Trudeau also tweeted that there "isn't a snowball's chance in hell" that Canada would join the US.

The idea was first floated by Trump when he was meeting Trudeau in November. When Trudeau was concerned about Trump threatening to hike tariffs on Canadian imports, the President-elect made the controversial remark.