Trump: "Canada Would Be a Much Better 51st State of the US"... Tariff Pressure on Auto Industry

"Canada Faces 50-100% Tariffs on Cars if No Agreement Reached"

U.S. President Donald Trump reiterated that the scenario of Canada becoming the 51st state of the United States is possible.

In an interview with Fox News aired on the 10th (local time), President Donald Trump said, "It would be much better if Canada became the 51st state of the United States."

He added, "If Canada becomes part of the U.S., they will have lower taxes and strong military protection," and said, "Russia and China have deployed warships near Canada, and we cannot ignore this."

This came after it was revealed that Canadian Prime Minister Justin Trudeau said in a recent private meeting with businesspeople that "Trump wants to make Canada the 51st state." Previously, President Trump sparked controversy by stating his intention to incorporate Canada as the 51st state of the U.S., and the backlash intensified after Prime Minister Trudeau, with his microphone on, expressed concern that Trump seemed serious.

Earlier, last month, Prime Minister Trudeau had downplayed Trump's remarks, calling them "just a strategy to divert people's attention."

President Trump also targeted Canada's automotive industry directly, saying, "We are losing $200 billion annually in trade with Canada."

Trump stated, "If we cannot reach an agreement with Canada, we will impose tariffs of 50% or even 100% on their cars." This exceeds the 25% tariff rate on Canada that Trump initially announced on February 1.

The White House extended the deadline for applying tariff policies to Canada and Mexico by one month, but concerns remain high. In response to Trump's pressure, Canadian Prime Minister Trudeau and Mexican President Claudia Sheinbaum promised to strengthen efforts to curb illegal drugs and migrants crossing the U.S. border, including the establishment of a "Fentanyl Czar."

According to an analysis by S&P Global Mobility, if tariffs take effect, the average price of cars imported from Mexico or Canada is expected to rise from $25,000 to $31,250, an increase of $6,250.

Anti-American sentiment is strong in Canada. A campaign to boycott the top five U.S. liquor brands is underway, and websites where Canadian products can be searched are popular. Jagmeet Singh, a member of the British Columbia House of Commons in Canada, told CNN on the same day, "Do not mistake our kindness for weakness," and stated, "There is absolutely no intention of becoming the 51st state of the United States."