Donald Trump threatened Canada with 25% tariffs and even quipped about a merger of the two nations. The North American neighbors have strong economic links, so what could be the impact of a trade dispute?

Canada's finance minister says U.S. President-elect Donald Trump’s comments that Canada should become the 51st state are no longer a joke and are meant to undermine America’s closest ally and major trading partner.

In response, Justin Trudeau, who is reportedly stepping down as Canada's prime minister, recently wrote on X: "There isn't a snowball's chance in hell that Canada would become part of the United States." Trump-ally Elon Musk then responded: "Girl, you're not the governor of Canada anymore, so doesn't matter what you say."

Pierre Poilievre, leader of Canada’s Conservative Party, shot back at President-elect Trump’s idea of making his country America’s 51st state. “Canada will never be the 51st state. Period. We are

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President-elect Trump proposed making Canada the 51st state, citing $200–250 billion in US subsidies and low NATO contributions. PM Trudeau earlier dismissed the remarks as a distraction, reaffirming sovereignty and warning of countermeasures if tariffs are imposed.