US President Donald Trump told global business leaders at the World Economic Forum in Davos, Switzerland on Thursday that the United States does not need Canadian energy, vehicles, or lumber, and he doubled down on his threats to impose tariffs on the country, the BBC reported.
Speaking via video link from Washington, Trump offered an unconventional alternative to tariffs, once again suggesting that Canada could “become a state” of the United States to resolve trade disputes.
“You can always become a state, and if you’re a state, we won’t have a [trade] deficit. We won’t have to tariff you,” he remarked, drawing gasps from the audience in Davos.
Trump’s proposed tariffs, which could be as much as 25%, could take effect as early as February 1 unless Canada capitulates to U.S. demands for increased border security and trade concessions.
Trump also accused Canada of being “very tough to deal with over the years,” claiming the US has a trade deficit with its northern neighbor of between USD 200 billion and USD 250 billion — a figure that economists have questioned.
Canada, heavily reliant on trade with the U.S., has expressed unease over the renewed tariff threats but has warned of significant countermeasures, including a “dollar-for-dollar” retaliation. Former Canadian Prime Minister Justin Trudeau emphasized the importance of avoiding tariffs but vowed a gradual and firm response should the levies be imposed.
Before resigning on January 6, Trudeau said, “We are prepared to take all necessary actions to protect Canada’s interests,” hinting at potential restrictions on energy exports to the U.S., though this approach has divided Canadian provincial leaders.
Despite Trump’s claim that the U.S. doesn’t need Canadian resources, economists argue the opposite, citing Canada’s role in energy security. Canadian energy exports to the U.S. were nearly USD 170 billion in 2024, reflecting deep integration in North American supply chains.
Trump reiterated his broader economic vision, urging businesses to manufacture in the U.S. to avoid tariffs.
With federal officials tasked to review by April all U.S. trade relationships for “unfair practices,” the escalating tensions with Canada underscore the challenges of balancing economic protectionism with global trade partnerships.
Earlier this month before he was inaugurated as a US president, Trump repeated the farfetched suggestion that Canada become America’s 51st state, just a few hours after Trudeau’s resignation. “The United States can no longer suffer the massive trade deficits and subsidies that Canada needs to stay afloat,” Trump wrote.
“Justin Trudeau knew this, and resigned.” If Canada became part of the US, “they would be ‘totally secure’ from the threat of Russian and Chinese ships that are constantly surrounding them,” he asserted.
Some US media platforms called Trump’s response to Trudeau’s resignation “trolling.”
In reaction, the leader of Canada’s Green Party, Elizabeth May, garnered worldwide attention defending Canadian sovereignty at a press conference on Parliament Hill, quickly amassing over 14 million views across YouTube, Twitter, and Instagram.
May scathingly mocked Trump’s call for Canada to be the 51st US state and his ignorance of the “Westminster parliamentary” form of government, and instead suggested that the Pacific northwest states of California, Oregon, or Washington might want to become Canada’s 11th province.
“Have we got a deal for you,” she said tongue-in-cheek. “Free healthcare, universal, free healthcare. No more one-year-olds who suddenly fall off the Medicaid list, and their parents are on the news because they’re trying to do a GoFundMe to get their daughter to a doctor.”