JOHN: GOOD EVENING.

I'M JOHN YANG.

PRESIDENT TRUMP SAID TODAY THAT AMERICANS MAY FEEL SOME PAIN AS A RESULT OF THE NORTH AMERICAN TRADE WAR THAT'S EMERGING AFTER HE IMPOSED SWEEPING TARIFFS ON MEXICO AND CANADA.

BUT, MR. TRUMP ADDED, IT WOULD BE WORTH THE PRICE.

RETALIATORY TARIFFS WERE QUICKLY ANNOUNCED BY MEXICO, CANADA AND CHINA, WHICH THE PRESIDENT ALSO TARGETED WITH IMPORT DUTIES.

LAST NIGHT, CANADIAN PRIME MINISTER JUSTIN TRUDEAU HAD A STERN WARNING FOR AMERICANS.

>> THIS IS A CHOICE THAT, YES, WILL HARM CANADIANS, BUT BEYOND THAT, IT WILL HAVE REAL CONSEQUENCES FOR YOU, THE AMERICAN PEOPLE.

JOHN: TODAY, SENATE MINORITY LEADER CHUCK SCHUMER URGED MR. TRUMP TO REVERSE COURSE BEFORE THE TARIFFS TAKE EFFECT AT 12:01 TUESDAY MORNING.

>> YOU CAMPAIGNED ON LOWERING PRICES.

YOU CAMPAIGNED ON THIS WALLET.

BUT YOUR TARIFFS WILL HAVE MORE MONEY COME OUT OF THIS WALLET FOR SO MANY GOODS AND SERVICES.

JOHN: THE PUBLIC REACTION IN CANADA HAS BEEN ESPECIALLY STRONG.

KIRSTEN HILLMAN IS THE CANADIAN AMBASSADOR TO THE UNITED STATES.

MADAM AMBASSADOR, DO YOU SEE A PATH TO AVERTING THIS BEFORE TUESDAY MORNING?

KIRSTEN: I HAVE TO HOPE THERE IS ALWAYS A PATH.

THE PRESIDENT PUT THESE TARIFFS IN PLACE IN RELATION TO CONCERNS THAT HE HAD AT THE BORDER OR HAS AT THE BORDER.

WE'VE BEEN WORKING ON THAT WITH HIM AND HIS TEAM SINCE DECEMBER.

I THINK WE'VE MADE INCREDIBLE PROGRESS.

WE HAVE HAD DISCUSSIONS UP UNTIL LAST FRIDAY BUT THERE IS ALWAYS MORE TO TALK ABOUT SO I'M HOPEFUL.

WE ARE SEEING GOOD ENGAGEMENT WITH HIS ADMINISTRATION INCLUDING HIS BORDER CZAR.

I HOPE THERE IS A PATH OUT OF THIS.

JOHN: IS IT CLEAR WHAT THE PRESIDENT WANTS OUT OF THESE TALKS?

KIRSTEN: WE HAVE TO TAKE HIM AT HIS WORD.

WHAT HE HAS SAID TO US, WHAT HE'S PUT IN THE EXECUTIVE ORDER, IS THAT HE HAS CONCERNS AROUND BORDER SECURITY.

WHEN IT COMES TO THE NORTHERN BORDER ON PEOPLE CROSSING ILLEGALLY WE ARE LESS THAN 1% OF THE PEOPLE THAT TRAVEL INTO THE UNITED STATES.

FOR FENTANYL, AGAIN, LESS THAN 1% OF THE FENTANYL THAT ENTERS THE U.S. MARKET COMES FROM THE NORTHERN BORDER.

VERY SMALL NUMBERS, BUT WE'RE STILL WORKING VERY HARD ON THIS BECAUSE ANY AMOUNT OF FENTANYL ENTERING EITHER OF OUR COUNTRIES IS TOO MUCH.

AGAIN, WE'VE PUT $1.3 BILLION.

WE'VE GOT ALL SORTS OF PARTNERSHIPS THAT WE'RE WORKING ON WITH THE TRUMP ADMINISTRATION.

WE'RE OFF TO CHINA WITH OUR POLICE FORCE AND MEMBERS OF THE WHITE HOUSE NEXT WEEK TO TRY AND GET AT THE PRECURSORS ISSUES, AND WE'RE READY TO TALK ABOUT ANYTHING ELSE.

WE ARE OPEN AND WE HOPE, WE HOPE THERE'S AN OFF RAMP HERE.

JOHN: I KNOW YOU HAVE CANADIAN THREE CABINET MINISTERS IN WASHINGTON LAST WEEK FOR THE TALKS.

ARE THEY STILL HERE AND YOU SAY THE TALKS WENT UP UNTIL FRIDAY.

ARE THEY HOPEFUL THAT THEY'LL REOPEN SOMEHOW?

KIRSTEN: THAT IS UP TO THE ADMINISTRATION.

WE ARE HERE, READY TO TALK ON ANY ADDITIONAL CONCERNS THAT THEY MAY HAVE IN RELATION TO THE BORDER.

IF THERE'S ANYTHING THAT WE HAVEN'T PUT IN OUR PLAN, BY ALL MEANS LET US KNOW, BUT WE'VE, PUT MORE BOOTS ON THE GROUND, BUT MORE EQUIPMENT, HAVE NEW INTELLIGENCE SERVICES.

IT HAS HAD AN EFFECT.

IN THE LAST FEW MONTHS WE'VE HAD AN 89% DROP IN PEOPLE CROSSING FROM CANADA INTO THE UNITED STATES ILLEGALLY.

JOHN: THE RETALIATORY TARIFFS, IF THIS GOES INTO EFFECT ON TUESDAY, WHAT SHOULD AMERICAN CONSUMERS EXPECT?

KIRSTEN: WE ARE YOUR BIGGEST CUSTOMER.

YOU SELL MORE TO US THAN THE UK, CHINA, FRANCE AND JAPAN COMBINED.

THOSE ARE SALES THAT SUPPORT A LOT OF BUSINESSES AND A LOT OF JOBS, AND 8 MILLION JOBS HERE IN THE UNITED STATES AND CANADIANS WILL LOOK ELSEWHERE FOR THOSE PRODUCTS BECAUSE A 25% PRICE INCREASE IN TODAY'S WORLD IS PROBABLY TOO MUCH FOR MOST PEOPLE.

AMERICANS WHO ARE TRYING TO SELL INTO THE CANADIAN MARKET WHOSE JOBS DEPEND ON THAT CAN YOU KNOW CAN EXPECT SOME TOUGH TIMES.

JOHN: HOW IS THIS RESONATING ACROSS CANADA?

KIRSTEN: CANADIANS ARE PERPLEXED.

THEY DON'T UNDERSTAND WHY THIS IS COMING AT US.

ONE, WE HAVE ADDRESSED AND HAVE WORKED TO ADDRESS EVERYTHING THAT THE PRESIDENT IS CONCERNED OF WITH RESPECT TO THE BORDER, AS I SAID, SMALL PROBLEMS, BUT PROBLEMS THAT WE ARE WILLING TO LEAN INTO, FULLY.

WE ARE YOUR BEST CUSTOMER, WE ARE YOUR FRIEND, WE ARE THERE FOR YOU AND HAVE BEEN THROUGH WARS, THROUGH DOMESTIC, YOU KNOW, DISASTERS THROUGH 9/11, THROUGH THE HOSTAGE CRISIS IN IRAN.

WE DON'T HAVE A BETTER FRIEND THAN THE UNITED STATES AND THERE IS NO COUNTRY THAT WANTS THE U.S. TO SUCCEED MORE THAN CANADA.

I THINK CANADIANS ARE CONFUSED, PERPLEXED, DISAPPOINTED, BUT ALSO READY TO STAND UP FOR THEMSELVES AND THAT YOU ARE DEFINITELY SEEING ACROSS THE COUNTRY.

JOHN: NO BETTER FRIEND THAN THE UNITED STATES.

HOW DO YOU THINK THIS IS GOING TO AFFECT LONG-TERM RELATIONSHIP?

KIRSTEN: I DON'T KNOW.

I HOPE WE WILL MOVE PAST THIS QUICKLY.

WE HAVE ALMOST PEOPLE TRAVELING HALF A MILLION BETWEEN OUR TWO COUNTRIES EVERY SINGLE DAY FOR SCHOOL, FOR WORK, BECAUSE THEY HAVE HOLIDAY HOMES FOR FAMILY, AND YOU'VE GOT TO THINK THAT THOSE TIES ARE DEEP.

YOU'VE GOT TO SEE THAT THOSE TIES WILL BIND US TOGETHER, BUT THIS IS A BIG TEST EVERY THIS IS TOUGH AND I THINK CANADIANS ARE EAGER TO FIND OUR PATH BACK TO THE FRUITFUL PARTNERSHIP THAT WE HAVE IN DOING STUFF TOGETHER FOR THE BETTER GOOD OF BOTH OUR COUNTRIES.

JOHN: YOU'VE TALKED ABOUT CANADA OFFERING THINGS TO THE UNITED STATES ON THESE ISSUES.

CAN YOU CHARACTERIZE THESE TALKS AT ALL?

IS IT CANADA OFFERING , ARE THE U.S. OFFICIALS ASKING FOR ANYTHING?

KIRSTEN: THE WAY IT UNFOLDED, THE PRESIDENT EXPRESSED CONCERN AROUND ILLEGAL MIGRATION AND FENTANYL.

WE WERE ABLE TO GET TOGETHER WITH HIM, BUT ALSO OBVIOUSLY HIS OFFICIALS TO GO THROUGH THE DATA ABOUT WHAT IS ACTUALLY HAPPENING AT THE NORTHERN BORDER.

AS I SAY, LESS THAN 1% OF EITHER OF THOSE ARE SOURCED OUT OF CANADA.

BUT ON THE OTHER HAND, THESE ARE IMPORTANT ISSUES AND CANADIANS WANT A SAFE AND SECURE BORDER TOO, AND SO WE SAID, OK, WHERE DO YOU FEEL THERE MIGHT BE GAPS?

LET'S TALK ABOUT THAT.

WE INVESTED $1.3 BILLION IN NEW EQUIPMENT, NEW INFRASTRUCTURE, MORE PEOPLE, BUT ALSO THESE PARTNERSHIPS WITH THE AMERICAN LAW ENFORCEMENT AUTHORITIES SO THAT WE CAN GET AT SOME OF THESE PERNICIOUS ISSUES.

I THINK THAT HAS ALL BEEN RECEIVED VERY WELL.

I KNOW BECAUSE I HAVE BEEN IN THESE MEETINGS.

THERE'VE BEEN GOOD DISCUSSIONS, TECHNICAL DISCUSSIONS, SERIOUS DISCUSSIONS.

WE HAVE ASKED THE QUESTION, IS THERE MORE FOR US TO DO?

IT'S NOT CLEAR WHAT THAT WOULD BE YET, BUT IF THERE IS, WE'RE, AT THE END OF THE PHONE, WE'RE READY TO TALK ABOUT IT.