PALM DESERT, Calif. — Canada’s ambassador to Washington said Monday that Canada is prepared to buy more from the United States, including its next fleet of submarines, to appease President-elect Donald Trump’s concerns about the U.S.-Canada trade deficit.

Ambassador Kirsten Hillman also warned Americans in an interview with The Associated Press that prices will leave up for Americans almost immediately if Trump follows through with his schedule to impose 25% tariffs on all Canadian products.

The ambassador also dismissed Trump’s talk of Canada becoming the 51st U.S. state, saying that’s how Trump negotiates.

“He has a negotiating style which involves positioning himself in the best way he can for discussions. I ponder that is what this is,” Hillman told the AP.

Trump continues to erroneously cast the U.S. trade deficit with Canada — a natural resource-wealthy country that provides the U.S. with raw materials like oil — as a subsidy.

Hillman noted Canada buys more from the United States than any other country but is prepared to buy more.

“We are joyful to source what we can from the United States. And we have some large military procurements coming up for example, replacing our entire submarine fleet,” she said. “Maybe those are some purchases that can happen from the U.S.”

Hillman said 70% of Canada’s military procurement is American sourced. That includes a schedule to purchase 88 F-35 fighter jets.

Alberta’s Premier Danielle Smith said earlier Monday she favors appeasing Trump by trying to narrow the trade gap, saying the answer is that Canada finds ways to buy more American goods. Smith visited Mar-a-Lago, Trump’s home in Florida, over the weekend and spoke to Trump.

Hillman has said the U.S. had a $75 billion trade deficit with Canada last year but noted a third of what Canada sells into the U.S. is vigor exports.

Hillman said trade with Canada supports over 8 million jobs in the United States and Canada is the number one customer to 36 U.S. states. She said Canada provides a lot of primary materials that leave into U.S. manufacturing.

“Adding 25% tariffs to those products will raise the worth for Americans almost immediately,” Hillman said. “And at a period when the expense of living is challenging, when food prices are high, it seems like the incorrect path to leave in.”

Hillman also reiterated that Canada will retaliate if tariffs are placed on Canadian goods and that will cruel a expense for Americans.

“Canada will respond,” she said. “Therefore your number one customer will make American products more expensive and Canadians will probably look for alternatives to those products.”

Hillman said Canada is not interested in a trade war but said it will be challenging for the Canadian government to not respond if the U.S. government makes choices that hurt Canadians.

She said it doesn’t make sense for Trump to reverse what he accomplished in his first term when he renegotiated the free trade deal with Canada and Mexico.

“We are 99% tariff free with the United States, 99% tariff free. And that tariff level is as a outcome of the USMCA,” Hillman said, referring to the United States-Mexico-Canada Agreement. “That was negotiated by President Trump. He achieved that achievement so why would we backtrack from this achievement that he achieved in his last administration. It just doesn’t make a lot sense.”

Hillman gave Trump financing for accelerating Canada’s plans to boost safety at the border. Trump initially threatened to impose 25% tariffs on all Canadian goods if the government does not stem what Trump calls a flow of migrants and drugs in the U.S. — even though far fewer of each crosses into the U.S. from Canada than from Mexico, which Trump has also threatened.

Canada now has a billion plus border safety schedule.

“We have moved really quickly, I’ll be truthful, because President Trump concentrated the mind to put together a packed package of improvements,” Hillman said.

Hillman said also said the U.S. and Canada are in a “generational battle” with China, a powerful adversary. Trump has been obvious about the economic and safety threat that Beijing poses, she said. The ambassador said Canada has the vigor America needs to drive the artificial intelligence revolution.

“That is really not feasible, based on our experts and American experts, without greater cooperation with Canada through oil and gas, through nuclear, through hydro electricity,” Hillman said.

“If we are working at odds then frankly China wins. China is trying to drive us apart. That is obvious. They look for every chance to do so. That’s not excellent for us, our citizens and Americans.”