Trump: America can no longer subsidize Canada
ByAinvest
Monday, Apr 28, 2025 8:37 am ET1min read
Trump: America can no longer subsidize Canada
In a resurgence of his contentious rhetoric, U.S. President Donald Trump re-emerged on the Canadian political stage just days before the federal election, warning that auto tariffs could be raised and suggesting that Canada could become the 51st state. The remarks, made from the Oval Office, come as Canada's federal election has shifted focus from U.S. economic and sovereignty threats to domestic issues such as the economy and cost of living [1].Trump's comments were part of a broader discussion where he repeated his false claim that the United States "subsidizes" Canada to the tune of $200 billion US annually. This claim has been repeatedly debunked by journalists and trade experts, who note that Canada's trade deficit with the U.S. was $63 billion US last year, down from $64 billion US in 2023, and that trade deficits are not considered subsidies [1].
The president also expressed his desire to make Canada the 51st state, a sentiment he has held since his inauguration for his second term. He stated, "I have to be honest, as a state it works great. Ninety-five per cent of what they do is they buy from us and they sell to us." Trump's comments come despite the fact that a majority of Canadians oppose the idea of joining the U.S. [2].
In response to Trump's remarks, Liberal Leader Mark Carney has been campaigning on his ability to deal with Trump. Carney has repeatedly mentioned the U.S. president during his campaign, calling for a "strong mandate" for a Liberal government to face Trump's threats. Carney has also accused Conservative Leader Pierre Poilievre of an "American-style" approach to homelessness, affordable housing, and mental health care [1].
The Liberal leader has based his campaign on the theme that Canada has no choice but to forge stronger alliances with the rest of the world while renegotiating its relationship with the U.S. "America wants our land, our resources, our water, our country. President Trump is trying to break us so that America can own us," Carney told supporters [2].
The political implications of Trump's comments are significant. They have shifted the focus of the Canadian election back to U.S. economic and sovereignty threats, just days before the election. The comments also underscore the ongoing trade tensions between the two countries, which have been exacerbated by Trump's rhetoric and actions [1].
References:
[1] https://www.cbc.ca/news/politics/trump-canada-politics-1.7516951
[2] https://finance.yahoo.com/news/trump-aiming-big-concessions-trade-154921320.html

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