President Donald Trump has again threatened Canada in their emerging trade war, repeating that the neighbouring country should become “our cherished 51st state”.
The US leader said this weekend that he is imposing 25% tariffs on imports from Canada and Mexico.
The two countries then hit back with retaliatory tariffs, with their respective leaders announcing their responses on Saturday night.
Speaking on his Truth Social platform on Sunday afternoon, Mr Trump said: “We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason.
He claimed that without the “massive subsidy” Canada “ceases to exist as a viable country”.
He added: “Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada – AND NO TARIFFS!”
The Trump administration had said that the tariffs aimed to stop the spread and manufacturing of the opioid fentanyl, as well as pressuring America’s neighbours to limit illegal immigration to the US.
But it risks a trade war and higher prices for American consumers. Economists argue supply chains will be disrupted and businesses will suffer increased costs – leading to an overall rise in prices.
Both Mexico and Canada rely heavily on their imports and exports, which make up around 70% of their Gross Domestic Products (GDPs), putting them at even greater risk from the new tariffs.
In his Sunday posts on Truth Social, Mr Trump also took aim at the Wall Street Journal which he said was leading a “Tariff lobby”, after the newspaper ran an opinion piece titled “The Dumbest Trade War in History”.
Announcing the retaliatory tariffs on Saturday night, Canadian Prime Minister Justin Trudeau delivered a passionate message to American consumers.
Mr Trudeau reminded Americans that Canadian troops fought alongside them in Afghanistan and helped them respond to domestic crises including the wildfires in California and Hurricane Katrina.
Canada’s ambassador to the US said she hoped the tariffs would not come into effect on Tuesday, but she added she expects the Canadian government to stand firm.
Meanwhile, in Mexico, President Claudia Sheinbaum said: “We categorically reject the White House’s slander that the Mexican government has alliances with criminal organisations, as well as any intention of meddling in our territory.”
She added: “If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do, and the laundering of money that this illegal activity generates that has done so much harm to its population.”
