Canada

*PM says Trump is trying to make it easier to annex Canada — but it won't work *

An unbowed Prime Minister Justin Trudeau said Tuesday that Canada will hit back hard at the U.S. after President Donald Trump launched a North American trade war by slapping devastating 25 per cent tariffs on virtually all Canadian goods.

Speaking to reporters at a news conference on Parliament Hill, Trudeau said Trump is trying to prompt "a total collapse of the Canadian economy" because he thinks that will "make it easier to annex us."

But Trudeau said that will never happen because "when it comes to defending our great nation, there is no price we all aren't willing to pay."

Trudeau said Canada will not back down from a fight in the face of "completely bogus and completely unjustified" trade action that has the potential to ruin bilateral relations and prompt job losses, economic devastation and higher inflation on both sides of the border.