Canadian Prime Minister Justin Trudeau has dismissed U.S. President-elect Donald Trump’s suggestion of annexing Canada as a diversionary tactic meant to shift focus from the potential economic fallout of proposed tariffs. The comments came after Trump announced plans to impose 25% tariffs on all Canadian imports unless Canada strengthens its border security.

Speaking on Tuesday, Trump hinted at using economic leverage to acquire Canada, a statement that drew widespread criticism. On Wednesday, Trudeau addressed the remarks during an interview with CNN, characterizing them as part of Trump’s negotiating strategy.

“What I think is happening is President Trump, who is a very skillful negotiator, is getting people to be somewhat distracted by that conversation,” Trudeau said.

Trudeau highlighted the significant economic consequences of Trump’s tariff proposal, noting that critical imports such as oil, gas, electricity, steel, aluminum, and lumber would become substantially more expensive for American consumers. He underscored the mutual harm such measures would inflict on both nations’ economies.

Despite Trump’s rhetoric, Trudeau reaffirmed Canada’s sovereignty, reiterating that there was “not a snowball’s chance in hell” of Canada becoming part of the United States. He warned that Ottawa would respond decisively with retaliatory measures if Trump proceeded with the tariffs.

Trudeau referenced Canada’s countermeasures during the 2018 trade dispute, which targeted U.S. products like Heinz ketchup, bourbon, Harley Davidson motorcycles, and playing cards. “These measures were designed to hurt American workers,” Trudeau explained, emphasizing that while such actions are undesirable, they are necessary to protect Canadian interests.

While asserting Canada’s commitment to safeguarding its sovereignty and economic stability, Trudeau expressed optimism for a resolution that avoids further economic harm.

“We don’t want to impose tariffs because it drives up prices for Canadians and harms our closest trading partner,” he said.

As tensions escalate, Canada remains focused on defending its interests while maintaining the strong trade relationship with the United States that is vital to both economies.