Canadian Prime Minister Justin Trudeau will meet with all opposition leaders on Wednesday to discuss US-Canada relations following threats by US President-elect Donald Trump to impose sweeping tariffs on all Canadian products.

A source familiar with the situation said the meeting would take place early Wednesday afternoon. The individual, speaking on condition of anonymity, confirmed that the talks are aimed at addressing the escalating tensions over trade.

Trudeau successfully navigated a "Team Canada" approach during Trump's first term, working to renegotiate the North American Free Trade Agreement (NAFTA). However, Trudeau’s political position has weakened since then, and with an election looming in under a year, the current situation is more precarious.

The latest threat came after Trump’s meeting with Trudeau at his Mar-a-Lago club in Florida on Friday. Despite calls for a more cooperative stance, Trump did not back down from his pledge to impose a 25% tariff on all imports from Canada and Mexico unless they take stronger action to address migration and drug flows.

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Trump’s remarks have sparked concern in Canada, which argues that it is being unfairly lumped in with Mexico. With 77% of Canada’s exports destined for the US, the potential tariffs would have a devastating impact on the Canadian economy.

The country is one of the most trade-dependent in the world, and much of its daily trade, including crucial energy supplies, flows across the border.

Kirsten Hillman, Canada’s ambassador to Washington, expressed optimism over Trudeau’s efforts to explain that the situation at the Canadian-US border is vastly different from that at the US-Mexico border. While the US has faced significant migrant and drug issues on its southern border, Canada has seen far fewer encounters, particularly with drugs like fentanyl.

Source: With inputs from wires