Ottawa: Prime Minister Justin Trudeau on Tuesday accused US President Donald Trump of imposing tariffs on Canada with the intent of crippling its economy, making it easier for the United States to annex its northern neighbour.

Trump's administration imposed a 25 percent tariff on all Canadian goods, prompting immediate retaliation from Canada. The escalating trade war has raised concerns over the future of commerce between the two nations, which share a border facilitating billions of dollars in daily trade.

The US president has justified the tariffs as a measure to curb what he describes as the illegal flow of migrants and the opioid fentanyl across the border. However, Trudeau dismissed this claim as "completely false," insisting that Canada is not a significant contributor to either issue in the United States.

Trudeau warns of economic threat
When asked about Trump's motivations, Trudeau alleged that the US leader, who has previously spoken about Canada becoming the 51st American state, aims to destabilise the Canadian economy.

"He wants to see a collapse of the Canadian economy because that would make it easier to annex us," Trudeau stated.

"The United States launched a trade war against Canada. Canadians are reasonable. We are polite. We will not back down from a fight," he added.

Addressing Trump directly, Trudeau remarked that while he considers the US president a "smart guy," the tariff decision is a "very dumb thing to do."

Trudeau's final days in office
Trudeau, who has led Canada since 2015, is set to step down as prime minister once the governing Liberal Party selects a new leader on Sunday.

In a bid to prevent the tariffs, Trudeau's government implemented a costly new border security plan and appointed a fentanyl czar to tackle the opioid crisis. Despite these efforts, the tariffs came into force on Tuesday.

Trudeau reaffirmed his commitment to securing the removal of the tariffs, saying, "Our focus remains on getting US tariffs lifted as quickly as possible."

With AFP inputs