Give California to Canada: Trudeau opens up on his counter-offer to Trump

Trudeau told MSNBC that he had jokingly suggested to Trump that he could exchange a few places for Vermont or California in return.

In Short

• Trudeau warns tariffs will hurt both US and Canada
• Canadian PM stresses importance of free trade and stable business
• Trudeau dismisses Trump's idea to make Canada part of US

Canadian Prime Minister Justin Trudeau on Thursday said that he had jokingly asked for either Vermont or California in return after President-elect Donald Trump expressed his interest in taking over Canada.

Recounting the exchange he had with Trump in November last year, Trudeau told MSNBC that he had jokingly suggested to Trump that he could exchange a few places for Vermont or California. Trudeau recalled that after his suggestion the US President-elect didn't find the conversation funny.

During the exchange, Trump reportedly told Trudeau that he should think of joining the US as its 51st province if he was concerned about the increase in tariffs.

Talking to American business leaders on Thursday, Trudeau pointed out that Donald Trump's suggestion of Canada becoming the United States' 51st province was to merely distract everyone from the "negative impacts" of the President-elect's proposed hike in tariffs.

Referring to Trump's plan to impose 25% tariffs on Canadian imports, Trudeau said 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.