Cryptopolitan
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Trump Says Canada Could Become USās 51st State If His Tariffs Crush Its Economy
Donald Trumpās dinner meetings are never boring, but his recent one with Canadian Prime Minister Justin Trudeau at Mar-a-Lago might go down in history as the most audacious. Between the high-end steak and well-aged wine, Trump reportedly suggested that Canada should consider becoming the 51st state of the United States if it canāt manage its economy under his looming 25% tariffs.
āIf your country canāt survive unless itās ripping off the U.S. to the tune of $100 billion, maybe it should become a state.ā
ā Donald Trump
With three-fourths of Canadaās exports dependent on the U.S. market, Trumpās threat was a potential death knell for Canadaās economy, forcing the Canadian leader to start scrambling for solutions.
Tariffs: Economic warfare or a dealbreaker?
Trump has never hidden his disdain for trade deficits or what he calls āunfair trade practices.ā So of course he wants protectionist trade policies. Thatās the America First agenda.
His latest salvoāa proposed 25% tariff on Canadian goodsāwas positioned as a response to perceived failures by Canada to control drug smuggling and illegal migration across their shared border.
Roughly 75% of Canadaās exports head south of the border, making the U.S. its lifeline. Economists estimate that these tariffs could slash Canadaās GDP by 2.4% within two years and eliminate up to 1.5 million jobs.Ā
The Canadian economy could spiral, with effects likely hitting industries ranging from lumber to automotive manufacturing.
Trudeau, caught between a rock and a hard place, argued that such tariffs would backfire, hurting U.S. consumers as much as Canadian producers. āThese tariffs would kill our industries,ā Trudeau reportedly said, emphasizing that costs for American citizens would inevitably rise.
Essential goods like timber, steel, and even groceries could see price hikes, making Trumpās tariff plan a political gamble on both sides of the border.
Dominic LeBlanc, Canadaās Public Safety Minister, labeled Trumpās strategy as ārecklessā in Canadian Parliament. āThis isnāt just about Canada,ā he said. āThe U.S. would face supply chain disruptions, higher prices, and industrial slowdowns.ā
Trump says Trudeau could be Governor
Trumpās latest comments, though humorous on the surface, carried a chilling undertone. For a nation as proud of its sovereignty as Canada, the remark was nothing short of incendiary.
The US president went even further, offering Trudeau a hypothetical deal: retain his title as prime minister but also take on the role of governor if Canada were absorbed into the U.S. The statement reeked of provocation, which Trudeau countered with a pointed response.
While refraining from escalating the rhetoric, he made it clear that Canada wouldnāt entertain such notions. āCanada is a sovereign nation,ā Trudeau reportedly said, maintaining a calm but firm tone. Yet behind closed doors, Canadian officials are undoubtedly calculating the potential fallout of a prolonged economic standoff.
Implications on the global economy
If Trumpās tariffs become a reality, the consequences will stretch far beyond Canada, or even China and Mexico. Economists warn that global financial markets will be caught in the crossfire too.
The World Bank estimates that tariffs on this scale could knock global GDP growth down by at least 0.5%, dragging major economies into slower recovery trajectories after years of pandemic-driven uncertainty.
Meanwhile, with its own trade relationship with the U.S. already strained, China could be affected as North American tariffs disrupt global commodity flows.
At the same time, Canada is exploring diversification strategies, seeking to reduce its dependence on the U.S. market. Trade agreements with the European Union and Pacific nations are back on the table as potential lifelines, though economists warn such shifts will take years to materialize.
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āIf your country canāt survive unless itās ripping off the U.S. to the tune of $100 billion, maybe it should become a state.ā
ā Donald Trump
With three-fourths of Canadaās exports dependent on the U.S. market, Trumpās threat was a potential death knell for Canadaās economy, forcing the Canadian leader to start scrambling for solutions.
Tariffs: Economic warfare or a dealbreaker?
Trump has never hidden his disdain for trade deficits or what he calls āunfair trade practices.ā So of course he wants protectionist trade policies. Thatās the America First agenda.
His latest salvoāa proposed 25% tariff on Canadian goodsāwas positioned as a response to perceived failures by Canada to control drug smuggling and illegal migration across their shared border.
Roughly 75% of Canadaās exports head south of the border, making the U.S. its lifeline. Economists estimate that these tariffs could slash Canadaās GDP by 2.4% within two years and eliminate up to 1.5 million jobs.Ā
The Canadian economy could spiral, with effects likely hitting industries ranging from lumber to automotive manufacturing.
Trudeau, caught between a rock and a hard place, argued that such tariffs would backfire, hurting U.S. consumers as much as Canadian producers. āThese tariffs would kill our industries,ā Trudeau reportedly said, emphasizing that costs for American citizens would inevitably rise.
Essential goods like timber, steel, and even groceries could see price hikes, making Trumpās tariff plan a political gamble on both sides of the border.
Dominic LeBlanc, Canadaās Public Safety Minister, labeled Trumpās strategy as ārecklessā in Canadian Parliament. āThis isnāt just about Canada,ā he said. āThe U.S. would face supply chain disruptions, higher prices, and industrial slowdowns.ā
Trump says Trudeau could be Governor
Trumpās latest comments, though humorous on the surface, carried a chilling undertone. For a nation as proud of its sovereignty as Canada, the remark was nothing short of incendiary.
The US president went even further, offering Trudeau a hypothetical deal: retain his title as prime minister but also take on the role of governor if Canada were absorbed into the U.S. The statement reeked of provocation, which Trudeau countered with a pointed response.
While refraining from escalating the rhetoric, he made it clear that Canada wouldnāt entertain such notions. āCanada is a sovereign nation,ā Trudeau reportedly said, maintaining a calm but firm tone. Yet behind closed doors, Canadian officials are undoubtedly calculating the potential fallout of a prolonged economic standoff.
Implications on the global economy
If Trumpās tariffs become a reality, the consequences will stretch far beyond Canada, or even China and Mexico. Economists warn that global financial markets will be caught in the crossfire too.
The World Bank estimates that tariffs on this scale could knock global GDP growth down by at least 0.5%, dragging major economies into slower recovery trajectories after years of pandemic-driven uncertainty.
Meanwhile, with its own trade relationship with the U.S. already strained, China could be affected as North American tariffs disrupt global commodity flows.
At the same time, Canada is exploring diversification strategies, seeking to reduce its dependence on the U.S. market. Trade agreements with the European Union and Pacific nations are back on the table as potential lifelines, though economists warn such shifts will take years to materialize.
A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.Ā See T&Cs.
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