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 struggles to extend recovery above 20-day EMAGold price (XAU/USD) is down 0.8% to near $4,140 during the European trading session on Monday. The precious metal faces selling pressure as the three-day rally hits a pause after failing to extend above $4,202.
Author  FXStreet
Jul 06, Mon
Gold price (XAU/USD) is down 0.8% to near $4,140 during the European trading session on Monday. The precious metal faces selling pressure as the three-day rally hits a pause after failing to extend above $4,202.
placeholder
Gold rebounds above $4,350 as US Dollar, Treasury yields slipGold price (XAU/USD) rebounds from a nearly one-month low to around $4,385 during the early Asian session on Thursday. The precious metal edges higher as the ‌US Dollar (USD) and Treasury yields retreat from recent highs.
Author  FXStreet
Yesterday 01: 29
Gold price (XAU/USD) rebounds from a nearly one-month low to around $4,385 during the early Asian session on Thursday. The precious metal edges higher as the ‌US Dollar (USD) and Treasury yields retreat from recent highs.
placeholder
Gold rebounds past $4,400 as rate-hike odds cool ahead of NFPGold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
Author  Irene Q.
Yesterday 09: 21
Gold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
placeholder
Gold rebounds above $4,450 as Waller tempers Fed rate hike bets ahead US jobs dataGold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday. 
Author  FXStreet
11 hours ago
Gold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday. 
placeholder
Yen hits one-month high on BOJ September-hike bets; AUD/JPY cracks support as carry unwindsUSD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
Author  Suzie
6 hours ago
USD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
goTop
quote