President Donald Trump has doubled down on tariffs on Canada’s steel and aluminum and called for making the country the US’s 51st state.
Trump blasted Canada in lengthy Truth Social posts on Tuesday morning and said he would ‘shortly be declaring a National Emergency on Electricity’ after the northern nation placed a 25% tariff on electricity into America.
The US president ordered an additional 25% tariff, to 50%, be imposed starting Wednesday morning on steel and aluminum from Canada – ‘ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.’
Trump also threatened to ‘substantially increase’ tariffs on cars into the US ‘if other egregious, long time Tariffs’ are not dropped by Canada.
‘We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue,’ wrote Trump.
‘The only thing that makes sense is for Canada to become our cherished Fifty First State.’
Trump continued that taking Canada ‘would make all Tariffs, and everything else, totally disappear’. He argued that Canadians’ taxes would be lowered and that they would gain military and other security.
‘There would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that,’ Trump wrote.
Is the US really 'losing $200 billion a year' to Canada?
One of Trump’s most common claims in his ongoing trade war with – and bizarre argument for annexing – Canada is that the US is ‘losing $200 billion a year’ to its northern neighbour.
But like a number of the president’s claims, it doesn’t quite tally with reality.
Yes, the US imports more from Canada than it exports, resulting in a trade deficit.
But in 2023, it totalled $67.9 billion.
While still high, that figure is a relatively small fraction of the US’s global trade deficit, which swelled to $945 billion in 2022.
Experts say Trump’s characterisation of a trade deficit as some kind of loss or subsidy is unfair.
‘The President-elect sees the world as a zero-sum game: Anything that’s not made here or bought elsewhere is considered a loss, which simply isn’t the case,’ Joe Brusuelas, chief economist at RSM US, told CNN.
‘The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, “O Canada,” will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!’
Trump demanded that Canada immediately get rid of its ‘Anti-American Farmer Tariff of 250% to 390%’ on American dairy products, which he branded as ‘outrageous’.
He stated that the national emergency on electricity in the threatened area would allow the US ‘to quickly do what has to be done to alleviate this abusive threat from Canada’.
In his second Truth Social post on the matter, Trump questioned why the US would allow another country to supply it electricity, for even a small area.
‘And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?’ Trump wrote.
‘They will pay a financial price for this so big that it will be read about in History Books for many years to come!’
Ontario Premier Doug Ford on Monday announced a 25% tariff on Canadian electricity into Michigan, Minnesota and New York, to counter tariffs from Trump.
Ford stated he was prepared to ‘shut the electricity off completely’ should the trade war with the US intensify.
The stock market quickly dropped more than 500 points on top of a previous tumble as investors’ concerns around a possible recession heightened.
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Trump last week ripped Canadian Prime Minister Justin Trudeau on Truth Social after a fiery call between the two leaders. He wrote that he told ‘Governor’ Trudeau that ‘he largely caused the problems’ due to weak border policies and allowing fentanyl and ‘illegal aliens’ to pour into the US.
‘He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!’ Trump claimed.
Trudeau announced in January that he would resign from his post.
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