President-elect Donald Trump warned Canada’s Prime Minister that if his country can’t deal with his tariffs, they might consider becoming the 51st state of the United States, According to unidentified sources speaking with Fox News.
Justin Trudeau “flew to Mar-a-Lago unannounced after Trump threatened to impose sweeping tariffs on Canadian products,” noted the report. “Before nibbling on crab cocktail and slurping down oysters, the issues of tariffs, border security and trade deficits were front and center … According to two people at the table who heard the discussion, Trump, while cordial and welcoming, was very direct when it came to what he wants from his counterpart to the North.”
Trump reportedly told Trudeau that Canada was not doing enough to secure the border, and complained about the U.S. trade deficit with its northern neighbor, which he claimed to be over $100 million. He added that, if Canada can’t survive a more balanced flow of trade with the U.S., Canada should consider becoming the 51st state, “which caused the prime minister and others to laugh nervously, sources told Fox News.”
Trump has regularly expressed concern about trade deficits with foreign countries, but economists generally believe he does not understand how trade deficits function, as they are not always negative.
He has pledged to impose 25 percent tariffs on all items imported from Mexico and Canada, including oil, and much higher duties on China.
Similarly, experts say Trump does not appear to grasp tariffs, since he has frequently indicated that other nations will pay money to the United States for the ability to transport goods, despite the fact that experts agree that American consumers will bear the majority of the expense.
