Trump's tariff war heats up: Canada urged to join as 51st state
In response to the US tariffs imposed on Canada, Donald Trump stated that the country "would not survive" without financial support from the US. That's why Canada should become our 51st state," he emphasized.
On Saturday, Donald Trump imposed 25% tariffs on Canadian goods and 10% on the country's energy resources. The 25% rate was also imposed on Mexico and 10% on China. This decision sparked significant controversy—the Wall Street Journal called it "the dumbest trade war in history."
Trump: Canada should become the 51st state of the USA
Donald Trump has since commented on the outrage among Canadians. "We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason. We don’t need anything they have. We have unlimited Energy, should make our Cars, and have more Lumber than we can ever use," Trump declared in a post on his social media platform Truth Social. "Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State," he added.
As he emphasized, Canada could then count on "much better military protection, lower taxes, and no tariffs."
The US President did not explain what he meant by "subsidies." From his previous statements, it appears he might be referring to the trade deficit in goods between the two countries. Despite the US President's claims that it amounts to hundreds of billions of dollars, government data indicates that US imports exceed exports to Canada by about $73 billion CAD.
Trump criticizes the "Wall Street Journal"
In another post on Sunday regarding the tariffs imposed on Saturday on Canada, Mexico, and China, the President criticized the conservative newspaper "Wall Street Journal," which in an editorial called Trump's move "the dumbest trade war in history." The President claimed that the "globalist" paper leads the "customs lobby" to justify "decades-long ripping off of America" and the influx of drugs and crime.
As Trump assessed, "those days are over," stating that the US has large trade deficits with Canada, Mexico, and China. "Produce your product in the US, and there will be no tariffs," he added.
"WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID. WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!" he assured, writing in all caps.
However, let's remind ourselves that according to economists' estimates, actions toward China can significantly affect the US. "If the United States imposed an additional 10% tariff on China, and China reciprocated, the U.S. GDP would decrease by CAD 73 billion over four years of the second Trump administration, and China by CAD 169 billion," estimated the American Peterson Institute for International Economics in a report cited by CNBC.
The USA imposes tariffs on Canada, Mexico, and China
On Saturday, Donald Trump announced in his post on X that he has officially imposed 25% tariffs on products from Mexico and Canada. Canada will also face tariffs on energy resources at a rate of 10%. At the same time, the USA is also imposing 10% tariffs on products from China. Trump explained that he did this due to the threat of illegal immigration and an influx of drugs, including fentanyl, into the States. He argued that all three countries are not making sufficient efforts to curb this practice.
