OTTAWA, In response to the unsupported allegation that the United States is “paying $200 billion a year” to its northern neighbour, U.S. President Donald Trump has reiterated his desire to see Canada become a state.
In apparent allusion to the U.S. trade deficit with Canada, Trump claims that Canada would be “much better off” as a state and that he would be okay with “subsidizing” it if it were a state.
According to Statistics Canada, oil exports were the main source of Canada’s $94.4 billion overall trade surplus with the United States in 2023.
In an interview that was broadcast on Sunday, Trump made the comment in answer to a query posed by Fox News host Bret Baier.
Prime Minister Justin Trudeau told a group of business leaders on Friday that Trump is serious about making Canada a state. Baier questioned Trump on Trudeau’s remarks.
Donald Trump told Baier, “I think Canada would be much better off being a 51st state because we lose $200 billion to Canada every year, and I’m not going to let that happen.”
It’s excessive. Why are we practically subsidizing Canada with $200 billion annually? Now, I have no problem doing it if they are a 51st state.
At a Canada-U.S. economic summit in Toronto on Friday, Trudeau informed a group of over 100 business leaders that Trump’s remarks regarding Canada becoming a state are “a real thing.”
As he went to New Orleans to see the Kansas City Chiefs vs. Philadelphia Eagles Super Bowl, Trump made the remarks during a press conference onboard Air Force 1.
Due to border security concerns about illegal immigration and fentanyl, Trump first threatened to put 25% tariffs on Canadian goods. However, the president’s remarks have remained focused on trade with Canada and, more lately, a perceived dearth of American banks in Canada.
According to the executive order, border concerns continue to be the formal basis for threatening tariffs.
On February 3, Trudeau and Mexican President Claudia Sheinbaum discussed their separate border plans with Trump, and both countries were given at least 30 days to avoid the teriffs with the new border plans.
Canada’s plan includes $1.3 billion in spending, first announced in December, on enhanced border security, including patrols with helicopters, and the creation of a “fentanyl czar”, who will work with U.S. counterparts in combating the toxic drug crisis.