President Donald Trump and Canadian Prime Minister Justin Trudeau captured at the White House on Oct. 11, 2017. (AP Photo/Carolyn Kaster, File)
On Sunday, Canada’s outgoing Prime Minister Justin Trudeau mentioned that President-elect Donald Trump’s comments about Canada potentially becoming the “51st state” have diverted focus from the significant impact that high tariffs would have on American consumers.
Trump has proposed to impose a 25% tariff on all imports from Canada.
“The 51st state, that’s not on the table,” Trudeau stated in an MSNBC interview. “Yet, the conversation has shifted from discussing the real effects of a 25% tariff on steel and aluminum imports to entertainment about statehood.”
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Trudeau emphasized: “No American citizen wants to see a 25% hike in costs for electricity or oil and gas from Canada. This is an important topic that needs more attention.”
Trump has claimed that should Canada become part of the U.S., taxes would decrease and tariffs would be eliminated.
“I recognize that as a skilled negotiator, he tends to keep people guessing,” Trudeau remarked about Trump’s economic coercion threats aimed at making Canada the 51st state.
Additionally, Trump has inaccurately labeled the U.S. trade deficit with Canada, a resource-rich neighbor supplying the U.S. with commodities such as oil, as a form of subsidy.
Officials in Canada have stated that should Trump enact his proposed tariffs, Canada might retaliate with tariffs on U.S. products like orange juice, toilets, and some types of steel.
During Trump’s first term, in response to tariffs on Canadian steel and aluminum, Canada imposed its own tariffs on American goods including bourbon, Harley Davidson motorcycles, and playing cards.
“He was elected to make life easier for all Americans and support American workers,” Trudeau said of Trump. “However, these (tariffs) will ultimately harm them.”
Last week, Trump stated that the U.S. doesn’t require oil or any other resources from Canada. However, approximately 25% of the oil the U.S. consumes daily is sourced from Canada, with Alberta exporting 4.3 million barrels of oil per day to the U.S.
Data from the U.S. Energy Information Administration indicates that the nation consumes about 20 million barrels of oil daily, while producing around 13.2 million barrels.
Canada, as a founding NATO member with a population exceeding 40 million, stands as the leading export market for 36 U.S. states. Every day, nearly $2.7 billion in goods and services are traded across the border.
Trump has expressed that he would reconsider his tariff threats if Canada improved its border security management, which he and his team view as a potential access point for undocumented migrants.
Trudeau asserted that less than 1% of illegal immigrants and fentanyl entering the U.S. are from Canada.
Following a meeting with Trump last November at Mar-a-Lago, the president-elect’s Florida residence, Trudeau announced an intention to boost border security funding, hoping to address Trump’s concerns to dissuade a tariff imposition.
Amid challenges posed by Trump’s upcoming second term and his party’s poor polling numbers, the beleaguered Prime Minister of Canada announced his resignation last Monday. He is expected to be succeeded on March 9, when his Liberal party plans to choose a new leader.
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