THE FUTURE OF UKRAINE TOOK CENTER STAGE AT MUNICH'S SECURITY CONFERENCE OVER THE LAST FEW DAYS BEFORE THE U.S. NOUNCED IT WOULD MEET WITH RUSSIAN OFFICIALS, OUR FOREIGN AFFAIRS CORRESPONDENT AND DEFENSE CORRESPONDENT NICK SCHIFRIN SAT DOWN IN GERMANY WITH MELANIE JOLY, TALKING ABOUT U.S. ECONOMIC THREATS AGAINST CANADA AND TENSIONS IN MUNICH BETWEEN THE U.S. AND ITS CLOSEST ALLIES.

NICK: HERE IN MUNICH THIS WEEKEND, YOU TOLD EUROPEANS, QUOTE, YOU'RE NEXT ON TARIFFS AND THAT CANADA AND EUROPE HAD TO WORK TOGETHER WHEN IT COMES TO TARIFFS.

HAS THE TRUMP ADMINISTRATION'S TRADE TALK AND RHETORIC HERE EVEN IN EUROPE, AFFECTED HOW THE U.S. IS PERCEIVED AS AN ALLY?

MELANIE: WELL, WHEN IT COMES TO TARIFFS, IT'S ALREADY THE CASE IN THE SENSE THAT STEEL AND ALUMINUM TARIFFS ARE ALREADY BEING IMPOSED STARTING MARCH 12TH ON EUROPEAN ALLIES AND ON EVERYBODY ACTUALLY.

CANADA IS THE BIGGEST CLIENT OF THE U.S. WE BUY FROM AMERICANS MORE THAN CHINA, JAPAN, FRANCE AND THE UK.

WE ARE THE BEST NEIGHBORS, WE ARE BEST FRIENDS.

WE ARE COMPLETELY LINKED.

SO, OF COURSE, IF IT HAPPENS AGAINST CANADA, IT WILL HAPPEN AGAINST EUROPEANS.

NICK: PRESIDENT TRUMP HAS PAUSED THE 25% TARIFFS THAT HE THREATENED ON CANADA FOR ONE MONTH.

YOU CALLED THOSE QUOTE, AN EXISTENTIAL THREAT.

DO YOU BELIEVE THAT PRESIDENT TRUMP WILL IMPOSE THE TARIFFS?

MELANIE: THE BASIS ON WHICH THESE TARIFFS WERE GOING TO BE IMPOSED ON CANADA AND MEXICO WERE BASED ON FENTANYL AND THE FACT THAT THERE WERE ISSUES AT THE BORDER.

SO WE WANTED TO DO THE BEST FOR US AND ALSO THE U.S.

WHICH IS , HAVING A VERY SECURE BORDER, HAVING A JOINT STRIKE FORCE AGAINST FENTANYL, MAKING SURE WE HAVE A BORDER CZAR AND GETTING VERY GOOD VIBES FROM WASHINGTON, BUT, WE UNDERSTAND THE THREAT WILL CONTINUE TO BE THERE.

IN THAT SENSE, IN CANADA, THE REACTION IS, FIRST, WE'LL TAKE CARE OF OURSELVES.

SECOND, WE NEED TO BE CLOSER TO OTHER ALLIES AND DIVERSIFY OUR TRADE.

THIRDLY, I THINK THAHACANADIANS EXPECT THEIR GOVERNMENT TO BE VERY STRONG ON THIS.

NICK: CANADA THREATENED ABOUT $155 BILLION WORTH OF TARIFFS AGAINST THE U.S. ARE YOU KEEPING THAT THREAT ON THE TABLE?

AND WHAT WOULD YOU DO IF, IN FACT, DONALD TRUMP CONTINUES WITH 25% TARIFFS AS THREATENED?

MELANIE: WELL OF COURSE, THIS IS OUR RESPONSE.

WE'LL MAKE SURE THAT WE ABIDE BY WHAT WE SAID TO FIRST CANADIANS, BUT ALSO TO AMERICANS.

WE HAVE TO RESPOND IF WE'RE UNDER THREAT.

NICK: THIS WEEKEND YOU CHAIRED THE FIRST G7 FOREIGN MINISTERS MEETING THIS YEAR, MOSTLY FOCUSED ON UKRAINE I AM TOLD.

THIS WEEK, SECRETARY OF DEFENSE PETE HEGSETH SAID THAT UKRAINE PROBABLY WOULD NOT BE ABLE TO RECAPTURE ALL ITS OCCUPIED TERRITORY AND WOULD PROBABLY NOT JOIN NATO.

VICE PRESIDENT VANCE AT THE END OF THE WEEK SAID, MAYBE U.S.

TROOPS COULD EVEN BE SENT INTO UKRAINE.

WHAT IS THE IMPACT OF U.S. MIXED MESSAGES ON UKRAINE?

MELANIE: WE NEED TO MAKE SURE THAT WE STAND WITH UKRAINE.

AND UKRAINIANS HAVE BEEN FIGHTING FOR THEIR OWN FREEDOM.

BUT WE'RE NOT NAÏVE.

WE KNOW THAT IF THAT IF RUSSIA DOESN'T GO UNCHECKED, IT'S OUR OWN FREEDOM AT STAKE.

THAT IS WHY A WAS HAPPY TO SEE THAT WITHIN THE FOREIGN MINISTERS MEETING OF THE G7, WE ALL AGREED THAT FIRST UKRAINE NEEDED TO MAKE SURE THAT IT WAS GOING TO HAVE ACCESS TO A COMPREHENSIVE, A JUST AND LONG LASTING PEACE, AND ALSO THAT UKRAINE NEEDED SECURITY GUARANTEES, NICK.

THAT'S WHY I THINK THAT THE G7 STATEMENT IS A STRONG ONE, ONE ON WHICH ALL G7 MEMBERS AGREE, INCLUDING OF COURSE OF THE U.S.

SO I THINK IT'S SENDS A STRONG MESSAGE.

NICK: DOES THAT MEAN THAT YOU HAVE FAITH THAT THE UNITED STATES WILL CONTINUE SUPPORTING UKRAINE?

MELANIE: I THINK IT IS IMPORTANT THEY DO.

AT THE SAME TIME WE HEAR THE MESSAGE, WE NEED TO SPEND MORE ON DEFENSE SPENDING.

CANADA WILL DO SO.

IF IT'S ABOUT BURDEN SHARING, NO PROBLEM.

LET'S HAVE THAT CONVERSATION.

BUT LET'S NOT HAVE A BAD DEAL FOR UKRAINE.

NICK: FINALLY, PRESIDENT TRUMP HAS CONTINUED TO JOKE ABOUT CANADA IS THE 51ST STATE.

HE'S QUESTIONED THE SOVEREIGNTY OF GREENLAND AND PANAMA.

WHAT IS THE IMPACT WHEN THE PRESIDENT OF THE UNITED STATES QUESTIONS THE SOVEREIGNTY OF COUNTRIES, INCLUDING NATO ALLIES?

MELANIE: I THINK CANADIANS HAVE BEEN CLEAR.

THEY DON'T LIKE IT.

WE DON'T LIKE IT.

WE WILL MAKE SURE THAT NEVER HAPPENS.

WE WILL CONTINUE TO BE THE BEST FRIENDS AND BEST NEIGHBORS AMERICA WILL EVER HAVE, BUT WE WILL NEVER BE A STATE AND WE WILL NEVER BE A COLONY, PERIOD.

NICK: MÉLANIE JOLY, THANK YOU VERY MUCH MÉLANIE: THANK YOU.