President Donald Trump reportedly elicited gasps from the international crowd gathered at the World Economic Forum in Davos, Switzerland, on Thursday when he suggested that Canada could become a U.S. state in order to avoid the sweeping tariffs he wants to impose.

The president complains of a "tremendous" trade deficit with its neighbour, saying the US does not need Canadian energy, vehicles or lumber.

Canadian Prime Minister Justin Trudeau has promised a “very strong” response if US President Donald Trump moves forward with renewed threats to impose a 25 percent tariff on Canadian goods. Trade relations between the countries continue to face turmoil despite Trump’s initial decision to hold off on enacting tariffs immediately after his