US President-Elect Donald Trump Escalates Remarks on Making Canada Part of the United States
In a press conference at his Mar-a-Lago resort in Florida, U.S. president-elect Donald Trump escalated his remarks about making Canada part of the United States. He reiterated that he intends to put "substantial" tariffs on goods from Canada and Mexico.
No Military Force Needed; Economic Force Will Do the Trick
When asked if he would use military force to annex Canada, Trump replied, "No — economic force. Because Canada and the United States, that would really be something. You get rid of that artificially-drawn line and you take a look at what that looks like, and it would also be much better for national security — don’t forget, we basically protect Canada."
The Numbers Behind the Trade Deficit
The total U.S. trade deficit in goods and services with Canada was $40.6 billion in 2023, according to U.S. Census Bureau data. This is driven by energy exports: the U.S. buys more than four million barrels a day of Canadian crude oil during some months.
Trump’s Claims About Canada
Trump claimed that the U.S. is subsidizing Canada to the tune of $200 billion a year, an apparent reference to the U.S. trade deficit and possible other factors.
Trudeau Responds to Trump’s Remarks
Canadian Prime Minister Justin Trudeau responded on social media, "There isn’t a snowball’s chance in hell that Canada would ever become a state." Trudeau announced his resignation on Monday, saying he doesn’t have enough support from within his Liberal Party to lead it into an election this year.
Potential Consequences of Trump’s Tariffs
In response to threats from Trump of 25% tariffs, officials in Ottawa have been examining the use of export taxes on items such as uranium, oil, and potash as potential responses in case there’s a trade war. Canada is the largest external supplier of oil to the U.S., its uranium is the biggest foreign source of fuel for U.S. nuclear power plants, and its potash is a huge source of fertilizer for American farms.
Canadian Dollar Drops in Response to Trump’s Threats
The Canadian dollar has dropped versus the greenback since Trump made a threat on Nov. 25 to put the tariffs on Canada and Mexico. The loonie was down 0.1% to $1.4344 per US dollar as of 2:54 p.m. in New York.
Potential Leadership Candidates Respond to Trump’s Remarks
Conservative Party Leader Pierre Poilievre, whom polls say is the odds-on favourite to win the upcoming election, has said Canada would "never" be a U.S. state. Foreign Minister Melanie Joly posted on social media that Canada "will never back down in the face of threats." She’s considered a potential contender to succeed Trudeau.
Trump’s Response to Poilievre’s Comments
When asked about those comments, Trump said: "Then maybe he won’t win. But maybe he will. Listen, I don’t care what he says."
Conclusion
The threat of economic force from the United States could have significant consequences for Canada, including a potential trade war and changes to international trade agreements. As the situation continues to unfold, it remains to be seen how Canada will respond to Trump’s remarks.
Share Your Thoughts
Do you think Canada should be concerned about Trump’s threats? Should the country consider using export taxes or other measures in response? Share your thoughts in the comments below.
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