Canada’s outgoing Prime Minister Justin Trudeau says talk of Canada joining the United States as the “51st state” is only distracting from President-elect Donald Trump’s threat to impose 25% tariffs on Canadian imports.
Key Facts:
• President-elect Trump has floated steep tariffs on Canadian steel, aluminum, and energy.
• Trump has implied the tariffs could be avoided if Canada “merged” into the U.S.
• Trudeau calls this idea “a non-starter” but acknowledges that Trump is a skilled negotiator.
• If tariffs become reality, Canada might retaliate with duties on bourbon, orange juice, and more.
• Trudeau is stepping down in March, and Canada’s Liberal Party will choose its next leader.
The Rest of The Story:
From Trudeau’s perspective, any talk of annexing Canada serves as a diversion from the real economic threat.
Despite President-elect Trump’s suggestion that such a merger could reduce taxes, Trudeau underscores that Canadians are “very proud” of their identity.
He points out that tariffs would raise costs for American consumers, especially in states that rely on Canadian energy.
During a recent visit to Mar-a-Lago, Trudeau and Trump discussed the border and trade issues.
Trudeau noted that imposing tariffs on Canadian steel and aluminum would hurt American industries because the two economies are deeply intertwined.
He recalls when similar tariffs in Trump’s earlier term met with Canadian countermeasures on American goods, causing disruptions on both sides of the border.
Trudeau also mentioned that Canada is a major supplier of oil to the U.S., an important factor when talking about tariffs that could affect gas prices.
At the same time, Trump wants Canada to do more to secure the shared border.
Trudeau pledged to strengthen border controls, though he maintains that the number of illegal crossings from Canada to the U.S. is small.
JUST IN: Donald Trump takes a victory lap, once again calls on Canada to become the 51st state of the United States after Justin Trudeau announced his resignation.
"Many people in Canada LOVE being the 51st State." pic.twitter.com/XyYW7wktHx
— Collin Rugg (@CollinRugg) January 6, 2025
Commentary:
For once, we find ourselves in agreement with Trudeau about President Trump’s abilities.
Trump is a savvy negotiator, and that puts Canada at a disadvantage.
Canada has benefited from generous terms with the U.S. for a long time, and Trump is right to insist on better deals for American businesses and tougher border measures.
The Bottom Line:
Trade tensions between Canada and the U.S. remain high, and the idea of the “51st state” seems far-fetched to most.
Yet Trump’s tariff threat holds real weight, prompting Canada to prepare for possible retaliation.
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How the incoming administration balances its desire for stricter trade policies with the practical realities of a deeply interlinked supply chain will shape the future of both nations’ economies.