Donald Trump suggested "maybe Canada should become the 51st state" when Canadian Prime Minister Justin Trudeau told him his proposed tariffs would "kill the Canadian economy," Fox News reports citing unnamed sources.

Trudeau met Trump at the president-elect's Mar-a-Lago resort in Florida last week, after Trump threatened a 25 percent tariff on imports from Canada and Mexico unless the countries reduce migrants and drugs coming into the U.S.

The U.S. is Canada's biggest trading partner by a distance, accounting for approximately 75 percent of Canada's exports. The countries currently trade under a largely duty-free deal, the U.S.-Mexico-Canada Agreement, which was signed into law by Trump and took effect in 2020.

Fox News' White House correspondent Peter Doocy told Special Report host Bret Baier on Monday evening: "We are told that when Trudeau told President-elect Trump that new tariffs would kill the Canadian economy, Trump joked to him that if Canada can't survive without ripping off the U.S. the tune of one hundred billion dollars a year, then maybe Canada should become the 51st state and Trudeau could become its governor."

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