President Donald Trump acknowledged Sunday that Americans could face economic hardship due to the trade war he initiated against Canada, Mexico, and China. However, he suggested that tensions with Canada could be resolved—if the country were to become the United States’ “Cherished 51st State.”
Trump Singles Out Canada, Drawing Sharp Response
In a post on Truth Social, Trump took particular aim at Canada, leaving officials in Ottawa “perplexed” and “a little bit hurt,” according to Canada’s ambassador to the U.S. The administration’s sweeping tariffs impose a 10% duty on all Chinese imports and a 25% tariff on goods from Canada and Mexico. Energy imports from Canada—including oil, natural gas, and electricity—are subject to a 10% tax.
The tariffs, set to take effect Tuesday, could drive up prices on automobiles, computers, clothing, toys, gasoline, and alcohol, among other goods. Trump’s executive order also includes a mechanism to increase tariffs further if trade partners retaliate, raising concerns of a prolonged and destabilizing trade conflict.
Uncertain Timeline for Tariff Removal
The White House has provided no clear benchmarks for lifting the tariffs. An administration official told the Associated Press that success could be measured by a reduction in fentanyl-related deaths among Americans, though no specific targets have been set.
Trump also hinted at expanding tariffs to the European Union and the United Kingdom, telling reporters on Sunday, “It will definitely happen.” Dismissing concerns about retaliation from Canada, he stated, “If they want to play the game, I don’t mind. We can play the game all they want.”
In his Truth Social post, Trump argued that the U.S. does not rely on Canadian goods, stating, “We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use.” He went further, claiming, “Without that surplus, Canada ceases to exist as a viable country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada—AND NO TARIFFS!”
Despite his rhetoric, Canada remains one of the United States’ most critical trade partners, supplying 25% of the oil Americans consume daily.
Global Reaction: Canada, China, and Mexico Push Back
Canada Responds with Countermeasures
Canadian Prime Minister Justin Trudeau condemned the tariffs, announcing retaliatory 25% duties on up to $155 billion worth of U.S. imports, including alcohol and fruit.
“The actions taken today by the White House split us apart instead of bringing us together,” Trudeau said in a somber address. He highlighted Canada’s contributions to U.S. military operations and disaster relief efforts, emphasizing the long-standing alliance between the two nations.
“It is going to have real consequences for workers on both sides of our border,” Trudeau warned. “We don’t want to be here. We didn’t ask for this. But we will not back down.”
British Columbia Premier David Eby also announced that the province would boycott American liquor from U.S. ‘red’ states, removing certain brands from government-run store shelves.
China and Mexico Also Retaliate
China’s Ministry of Foreign Affairs strongly denounced the tariffs, vowing to take “necessary countermeasures” to protect its economic interests. The country also plans to file a complaint with the World Trade Organization over what it describes as “wrongful practices of the U.S.”
Meanwhile, Mexican President Claudia Sheinbaum rejected Trump’s accusations that her government is allied with criminal organizations. She instructed her economy secretary to implement a reciprocal tariff plan and additional measures to defend Mexico’s economic interests.
“If the United States truly wanted to address the fentanyl crisis, it would focus on tackling drug sales in its own cities and dismantling the money-laundering operations that fuel the crisis,” Sheinbaum stated.
Economic Fallout: U.S. Households Could Lose Over $1,000 Annually
A new analysis by Yale University’s Budget Lab warns that Trump’s tariffs could have severe economic consequences. The report estimates that the average American household could lose $1,170 per year due to increased costs. Inflation is expected to rise, while economic growth could slow further—particularly if trade partners implement their own retaliatory measures.
Trade expert William Reinsch of the Center for Strategic and International Studies criticized the move, arguing that it contradicts long-standing U.S. trade policies.
“Historically, our tariffs on raw materials have been low to ensure our manufacturers remain competitive. Now, Trump is proposing tariffs on the very materials our industries rely on. I don’t see the economic logic behind it.”
What’s Next?
With tariffs set to take effect this week, the U.S. faces growing tensions with its closest allies and key global trading partners. The administration has provided no clear exit strategy, leaving businesses, consumers, and international markets bracing for potentially severe economic disruptions.