Canada’s retaliation to Trump’s tariffs and takeover threats could be lethal

Source Cryptopolitan

The tension between Canada and the United States has hit a boiling point. President Donald Trump is back on his favorite stage (Twitter) throwing out threats of a 25% tariff on Canadian goods and even ridiculously suggesting that Canada should become the “51st state.”

In response, Canada is preparing to strike back hard. Its retaliation could be devastating for the US economy, leaving the world’s largest trading partnership in ruins.

Trudeau takes the first swing

Canadian Prime Minister Justin Trudeau flew down to Mar-a-Lago in late November to confront Trump face-to-face. In a tense three-hour meeting, he reportedly tried to steer the conversation toward diplomacy and mutual benefit.

But let’s be real—convincing Trump to back down on a tariff he thinks will “fix” immigration and drug trafficking is like trying to stop a freight train with a bicycle.

After the meeting, Trump almost immediately doubled down on his tariff threats and threw gasoline on the fire by casually floating the idea that Canada could become part of the US. His exact words? “Maybe Canada should think about becoming the 51st state. They’d love it.”

Canadians, predictably, did not love it.

Conservative Party leader Pierre Poilievre fired back almost immediately. “Canada will never be the 51st state,” he said in a press conference. “We are a sovereign nation, and we will not be bullied.” Ontario Premier Doug Ford said, “Our country’s independence is non-negotiable.”

The backlash wasn’t limited to political circles. Across Canada, citizens took to social media to mock Trump’s suggestion. One viral tweet read, “We’d rather join Mars than the US #51stStateNever.” Even provinces that often disagree on policy seemed to find common ground in rejecting the notion of statehood.

If Trump thought his statehood comment would pressure Canada into submission, he miscalculated—big time. The idea of becoming a US state is about as popular in Canada as pineapple on poutine.

For many Canadians, the suggestion is an insult to their national identity. Canada’s universal healthcare, progressive social policies, and cultural distinctiveness are sources of pride. Losing those in exchange for being lumped into a system they see as chaotic and unequal? Hard pass.

A 2023 survey found that 44% of Canadians already feel uneasy about high immigration levels, fearing it could dilute Canadian identity. Throwing in statehood, with all the political baggage that comes with it, is a non-starter for most.

That said, not everyone is slamming the door on closer ties with the US. Some Canadians see benefits in increased cooperation, particularly in areas like defense and border security.

A handful of people even argue that aligning more closely with the US could offer economic stability in the long term. But let’s be clear: “closer ties” is not the same as becoming the 51st state.

A $500 billion punch in the gut

Economically, Trump’s tariff proposal is a sledgehammer aimed at Canada’s biggest industries. With $3.6 billion CAD worth of goods crossing the border daily, a 25% tariff could cripple sectors like manufacturing, agriculture, and energy.

Canada is the largest foreign supplier of oil and natural gas to the US, making energy exports one of its most powerful bargaining chips.

Officials are reportedly preparing a menu of retaliatory measures that could make Trump regret he ever hit “Tweet.” First on the list: targeted tariffs on US goods.

The plan? Go straight for the economic jugular by focusing on states that rely heavily on Canadian trade. If these tariffs hit hard enough, they could push American lawmakers to pressure Trump into backing off.

Energy export taxes are also on the table. If Canada slaps a tax on its oil and natural gas heading to the US, energy prices could skyrocket south of the border.

From Zero to Web3 Pro: Your 90-Day Career Launch Plan

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD recovers some lost ground above $2,050, US ADP report eyedGold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday.
Author  FXStreet
Jan 04, 2024
Gold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday.
placeholder
Gold prices rise to over one-month high on softer dollar, bond yieldsGold prices climbed on Tuesday to their highest point in more than a month, supported by a weaker U.S. dollar and lower Treasury yields.
Author  Reuters
Jul 22, 2025
Gold prices climbed on Tuesday to their highest point in more than a month, supported by a weaker U.S. dollar and lower Treasury yields.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Oct 06, Tue
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
Oct 07, Wed
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
placeholder
Gold falls to a two-month low as real yields bite — can $4,000 hold?Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.
Author  Irene Q.
18 hours ago
Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.
goTop
quote