RT reported that speaking at a press conference in North Carolina on January 24, US President Donald Trump said that if Canada became the 51st state of the US, people would receive a lot of tax cuts because they are currently subject to very high taxes.
In addition, President Donald Trump affirmed that Canada will no longer have to worry about military or many other issues. “They will also have a better health care system and health insurance, really much better. I think Canadians will like this if it is clearly explained,” Mr. Donald emphasized.
Donald Trump has long been a vocal critic of Canada’s trade policies, threatening to impose a 25% tariff on goods from the country to protect the US economy. He said the tariffs would begin on February 1.
“We are losing $200 billion a year to Canada,” the US President asserted, blaming poor management, especially in the past four years, for the imbalance.
According to Donald Trump, if Canada joins the US, tariffs will be eliminated, creating greater business and trade opportunities for both sides. “We don’t need cars, lumber and food from Canada because we produce them right across the border,” Trump declared.
President Donald Trump’s proposal did not sit well with Canada, especially outgoing Prime Minister Justin Trudeau. After rejecting the annexation offer, Prime Minister Trudeau asserted, “Canada will never become part of the United States.”
Prime Minister Trudeau also warned that if the US uses its “economic muscle” to coerce, Canada will respond with retaliatory tariffs. “Prices for American consumers will increase on almost everything,” Mr. Trudeau warned.
Canada is considering retaliatory tariffs on U.S. orange juice, toilets and some steel products if Trump follows through on his threat. As President Trump imposed higher tariffs during his first term, Canada announced billions of dollars in new tariffs against the U.S. in 2018 in response to new tariffs on Canadian steel and aluminum.
“Anything is possible,” said Prime Minister Trudeau. “It would be bad for Canada, but it would also be bad for American consumers.”
Nearly $2.7 billion worth of goods and services cross the border every day. Canada is the top export destination for 36 US states.
Although President Donald Trump claims the US is running a $200 billion deficit with Canada, data from the US Bureau of Economic Analysis (BEA) shows that the actual goods and services trade deficit with Canada in 2023 will be only about $40 billion.
From sharing a map of Canada’s annexation on social media to making economic statements, President Donald Trump seems to be painting a vision of Canada and the United States uniting. However, this has been met with strong backlash from Canada.
