"I deal with many countries, and Canada is easily the most difficult and unreasonable," those were the words of US President Donald Trump on Tuesday. He was commenting on the collapse of a trade deal between his nation and its neighbor to the North after negotiations fell apart at the eleventh hour.
Both sides claim that the other was making unreasonable demands in the last-minute of the deal. Officials have confirmed that talks are suspended with no set date to resume.
Trump is putting pressure on Canada in a tariff war. The US imposed a 50% tariff on Canadian imports last weekend, ranging from steel to furniture and even hockey sticks. In retaliation, Canada imposed its own counter-tariffs this week, with a list of targeted products designed to match the goods hit by the US. Now, Trump is claiming he will increase tariffs on Canadian cars and trucks from 25% to 50% in January.
“Trump has suggested Canada should become the 51st state”
The Trump administration has locked horns with Canada repeatedly during his second term as President. Many times, Trump has suggested Canada should become the 51st state by joining the US, most recently reiterating the comments after Statistics Canada confirmed the nation had slipped into a recession.
On the opposite side, Canadian leaders have completely rejected Trump's suggestion. PM Mark Carney said simply: "It will never happen." Ontario Premier Doug Ford echoed those sentiments.
While analysts agree Canada as a whole shifting allegiance to the US is implausible, there is a small possibility one province could become a US state. Alberta will have a referendum in October in which citizens will decide if they want to separate from Canada. A "Yes" vote would warrant another "binding" referendum.
If the province were to separate, some analysts believe it could not support itself economically given it would be landlocked between two countries with no port access for its oil. Current polling, however, shows only 30% of Albertans are open to a referendum, and a smaller minority still would support joining the US specifically.
The price for the US to take control of any Canadian territory is currently 8% with Kalshi, up two points in 24 hours as the trade dispute continues.