US President-elect Donald Trump has threatened to impose a 25% tariff on Canadian and Mexican goods, using "economic force" for potential acquisition of Canada.
Trump ruled out military action, suggesting that a unified Canada and the US could enhance national security.
Experts warn that these tariffs could severely impact the Canadian economy if enacted post-inauguration.
The Trudeau government is under pressure to increase military spending and considering counter-tariffs in response to Trump's threats.
Doug Ford, Ontario's Premier, emphasized the importance of trade relations and expressed willingness for fair agreements amid rising tensions.