President-elect Donald Trump has suggested that Canada should become the 51st state, citing economic and defense concerns as justification. Speaking from Palm Beach, Florida, Trump said, "I called them Governor Trudeau because they should be the 51st state, really. It would make a great state. And the people of Canada like it. They pay lower taxes. They have virtually no military. They pay less than 1 percent. They're about the lowest payer in NATO."
Trump argued that the US heavily subsidizes Canada, claiming, "From the standpoint of the United States, we're subsidizing Canada. USD 200 and USD 250 billion a year. We have massive deficits. They've taken about 20 per cent of our car business. I'd rather do it here. We could put tariffs on them. We don't have tariffs on them yet, but that will happen."
Highlighting Canada's reliance on US support, Trump said he confronted Canadian Prime Minister Justin Trudeau, stating, "I said, why are we subsidizing you $200 and $250 billion a year? He said, I really don't know. And I said, well, I don't know either. I said, what would happen to Canada if we didn’t? He said Canada would be obliterated if that happened. I said, then Canada should be a 51st state. And that's where we are now."
Trump also dismissed the need for Canadian imports, saying, "We don’t need Canada for lumber because we have big forests that we have...we don’t need anything. We don’t need their fuel. We don’t need their energy. We don’t need their oil and gas. We don’t need anything that they have."
Canadian Prime Minister Justin Trudeau rejected Trump’s remarks, calling them a diversion. "What I think is happening in this is President Trump, who is a very skillful negotiator, is getting people to be somewhat distracted by that conversation," Trudeau told CNN.
Trudeau emphasized the potential impact of US tariffs, stating, “Oil and gas and electricity and steel and aluminum and lumber and concrete and everything the American consumers buy from Canada (are) suddenly going to get a lot more expensive if he moves forward on these tariffs.”
Reiterating Canada’s sovereignty, Trudeau said there was "not a snowball's chance in hell" that Canada would join the US, adding that Ottawa would respond with countermeasures if necessary. He referred to the 2018 trade dispute, during which Canada imposed tariffs on products like Heinz ketchup, playing cards, and Harley Davidson motorcycles.
"But we don't want to do that because it drives up prices for Canadians and it harms our closest trading partner," he said.
The escalating rhetoric over call for Canada to join the US as its 51st state marks another chapter in Trump’s combative approach to US-Canada relations, raising questions about the future of bilateral ties under his potential leadership.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.