President-elect Donald Trump told the Prime Minister of Canada that if his country can't deal with his tariffs, maybe they should become the 51st U.S. state, according to anonymous sources speaking to Fox News.
Justin Trudeau "flew to Mar-a-Lago unannounced after Trump threatened to impose sweeping tariffs on Canadian products," noted the report. "Before nibbling on crab cocktail and slurping down oysters, the issues of tariffs, border security and trade deficits were front and center ... According to two people at the table who heard the discussion, Trump, while cordial and welcoming, was very direct when it came to what he wants from his counterpart to the North."
Trump reportedly told Trudeau that Canada was not doing enough to secure the border, and complained about the U.S. trade deficit with its northern neighbor, which he claimed to be over $100 million. He added that, if Canada can't survive a more balanced flow of trade with the U.S., Canada should consider becoming the 51st state, "which caused the prime minister and others to laugh nervously, sources told Fox News."
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Trump has repeatedly fretted over trade deficits with other countries, but economists have broadly said he doesn't seem to understand how trade deficits work, because they aren't necessarily bad.
He has vowed to put 25 percent tariffs on all goods coming in from Mexico and Canada, even oil, and even harsher tariffs on China.
Likewise, experts have said Trump doesn't appear to understand tariffs either, as he has repeatedly suggested that other countries will pay money to the U.S. for the right to ship goods, when experts agree that American consumers will end up paying most of the cost.
