x
USA World

Canada’s Trudeau Warns of Tariff Harm as Trump’s “51st State” Comments Dominate Trade Tensions

Canada’s Trudeau Warns of Tariff Harm as Trump’s “51st State” Comments Dominate Trade Tensions
Source: AP Photo
  • PublishedJanuary 13, 2025

Outgoing Canadian Prime Minister Justin Trudeau has criticized President-elect Donald Trump’s rhetoric regarding Canada becoming the “51st state,”suggesting it distracts from the potential harm that substantial tariffs would inflict on US consumers, The Associated Press reports.

Trump has threatened to impose a 25% tariff on all Canadian imports, a move Trudeau argues would significantly raise costs for Americans.

“The 51st state, that’s not going to happen,” Trudeau said in an interview with MSNBC, emphasizing that the focus should instead be on the repercussions of a 25% tariff on essential goods like steel and aluminum. “No American wants to pay 25% more for electricity or oil and gas coming in from Canada. That’s something I think people need to pay a little more attention to.”

Trump has also suggested that a merger between Canada and the US would result in decreased taxes and an end to tariffs. Trudeau acknowledged Trump’s negotiation style.

“I know that as a successful negotiator he likes to keep people off balance,” he said.

However, Trudeau emphasized that Trump’s economic threats and claims of a trade deficit with Canada being a subsidy are mischaracterizations of a trade relationship where Canada provides the US with essential natural resources like oil.

Canadian officials have indicated that if Trump proceeds with the threatened tariffs, Canada will respond with retaliatory tariffs on US products such as orange juice, toilets, and some steel. This follows a precedent set during Trump’s first term when Canada imposed tariffs on American bourbon, Harley Davidson motorcycles, and playing cards in response to US tariffs on Canadian steel and aluminum.

Trudeau stressed that Trump was “elected to try and make life easier for all Americans, to support American workers,” and that these tariffs “are things that are going to hurt them.” Trump, on the other hand, has recently declared that the US doesn’t need oil, or anything else, from Canada. This statement contradicts the fact that almost a quarter of the oil consumed in the US comes from Canada, with the energy-rich province of Alberta exporting 4.3 million barrels of oil daily to the United States.

Canada, a key NATO partner and home to over 40 million people, is also the top export destination for 36 US states, with nearly $2.7 billion worth of goods and services crossing the border each day. Trump has indicated he would reconsider the tariffs if Canada improved security at their shared border, which he views as a potential entry point for undocumented migrants. Trudeau has countered, asserting that less than 1% of illegal immigrants and fentanyl cross into the US from Canada.

Despite these tensions, Trudeau had previously announced increased spending on border security after a meeting with Trump at Mar-a-Lago last November, signaling a willingness to address Trump’s concerns. However, the tariff threats continue to loom over the relationship between the two countries.

Amidst this challenging political landscape and facing declining poll numbers, Trudeau announced his resignation last Monday. He will be replaced on March 9 when his Liberal party chooses a new leader.

Written By
Michelle Larsen