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Trade & tariff war: Trump greets Trudeau, again, as the “Governor” of Canada!

Trade & tariff war: Trump greets Trudeau, again, as the “Governor” of Canada!

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Virendra Pandit

 

New Delhi: Is President-elect Donald Trump setting in motion a move to ‘annex’ Canada as the United States’ 51st state, and appointing its vulnerable Canadian Prime Minister Justin Trudeau as the “Governor?”

Or is he pressuring an embattled Trudeau to sign on the dotted lines to the fresh US conditions on trade and tariff, coming up next year?

On Tuesday, again, Trump referred to Trudeau as the “Governor of the Great State of Canada,” confirming reports of the purported remarks he made recently at a dinner with the Canadian Prime Minister, who has to face parliamentary elections in 2025, the media reported. 

In a post on his social media outlet Truth Social, Trump said, “It was a pleasure to have dinner the other night with Governor Justin Trudeau of the Great State of Canada.” 

“I look forward to seeing the Governor again soon so that we may continue our in-depth talks on tariffs and trade, the results of which will be truly spectacular for all,” he added. 

US President-elect Donald Trump hosted Trudeau, who rushed in for an unscheduled meeting, for a private dinner at his Mar-a-Lago residence in Florida on November 30. The meeting came shortly after Trump threatened to impose high tariffs on Canada, Mexico, and China, citing their alleged failures in addressing issues of illegal immigration and drug trafficking into the US. 

During their dinner, Trump reportedly joked that Canada should consider becoming the 51st state of the US if his proposed 25 percent tariff on Canadian goods negatively impacted the Canadian economy. 

As Trump made his case for the hiked tariffs, he quipped, “Maybe Canada should become the 51st state of the USA.”

According to Fox News, the remark was met with nervous laughter from Trudeau and his team, who were caught between humor and the serious implications of Trump’s tariff proposals. 

The proposal to tax Canadian imports has been a key issue in the Republican leader’s election rhetoric this year, as he repeatedly called for a tough stance on trade imbalances and border security with both Canada and Mexico. The tariffs, which Trump aims to impose as soon as he takes office in January, are likely to target Canadian goods unless Canada and Mexico take urgent steps to curb illegal immigration and drug smuggling.

Canada exports almost 80 percent of all its products to the US. 

The “51st state” quip came on the heels of Trump’s comments over the last weekend, where he argued that if the United States is subsidizing its neighbors—Canada to the tune of USD 100 billion and Mexico to USD 300 billion– it might be better to make those countries part of the US rather than continue offering subsidies. 

“We’re subsidizing Canada to the tune of over USD 100 billion a year. We’re subsidizing Mexico for almost USD 300 billion. We shouldn’t be subsidizing. Why are we subsidizing these countries? If we’re going to subsidize them, let them become the state (of the US),” Trump was reported as saying in an interview on NBC’s Sunday Talk show.

His controversial remarks drew sharp reactions, as critics warned that his policies could harm relations with the US closest trading partners and neighbors. The rhetoric over subsidies, tariffs, and economic imbalances escalated tensions, with his critics saying that such extreme measures would have far-reaching consequences for both the US and Canada.

Responding to Trump’s proposed new tariffs, Trudeau expressed concern about the potential economic fallout, not just for Canada but also for American consumers. On Monday, he told the media that the tariffs could significantly raise costs for US consumers and lead to economic hardships on both sides of the border. 

“Trump got elected on a commitment to make life better and more affordable for Americans, and I think people south of the border are beginning to wake up to the real reality that tariffs on everything from Canada would make life a lot more expensive,” Trudeau said. 

He also highlighted the interdependence of the US and Canada, noting that a significant portion of American energy and agricultural imports come from Canada. “Let’s not kid ourselves in any way, shape, or form, 25 percent tariffs on everything going to the United States would be devastating for the Canadian economy,” Trudeau said. 

“It would also, however, mean real hardship for Americans as well. Americans import 65 percent of their crude oil from Canada and significant amounts of electricity. Just about all the natural gas exported from Canada goes to the United States. They rely on us for steel and aluminum. They rely on us for a range of agricultural imports. All of those things would get more expensive,” he added.

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