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
USD/CAD Price Forecast: Eyes fresh six-month highs near 1.4150 within overbought zoneThe technical analysis of the daily chart indicates a prevailing bullish bias, with the pair remaining within the ascending channel pattern.
Author  FXStreet
Yesterday 10: 04
The technical analysis of the daily chart indicates a prevailing bullish bias, with the pair remaining within the ascending channel pattern.
placeholder
Dow Jones futures gain amid easing US-China tensions, Michigan Consumer Sentiment awaitedDow Jones futures advance 0.20% to trade above 47,100 during European hours ahead of the opening of the United States (US) regular session on Friday.
Author  FXStreet
Yesterday 10: 01
Dow Jones futures advance 0.20% to trade above 47,100 during European hours ahead of the opening of the United States (US) regular session on Friday.
placeholder
Gold draws support from safe-haven flows and Fed rate cut betsGold catches fresh bids on the last day of the week amid reviving safe-haven demand.
Author  FXStreet
Yesterday 07: 11
Gold catches fresh bids on the last day of the week amid reviving safe-haven demand.
placeholder
WTI Price Forecast: Trades with modest gains below $60.00; not out of the woods yetFrom a technical perspective, the black liquid has been trending lower along a downward-sloping channel since late October.
Author  FXStreet
Yesterday 06: 41
From a technical perspective, the black liquid has been trending lower along a downward-sloping channel since late October.
placeholder
GBP/USD edges lower to near 1.3100 on potential for further BoE rate cutsThe pair depreciates as the Pound Sterling (GBP) weakens following the Bank of England’s (BoE) dovish hold in November.
Author  FXStreet
Yesterday 06: 06
The pair depreciates as the Pound Sterling (GBP) weakens following the Bank of England’s (BoE) dovish hold in November.
goTop
quote