President-elect Donald Trump has repeatedly suggested that Canada—a nation of 40 million people, one of America’s biggest trade partners, and a founding member of NATO—should become the 51st US state, citing economic and defence concerns as justification.
He may want to bring Canada into America's fold for many reasons, like its resources, including water and electricity. Canada is also its largest foreign steel, aluminium, and uranium supplier. It has 34 critical minerals and metals that the Pentagon is eager to control for national security.
Trump has threatened to use economic force against its neighbour, describing the trade deficit between the two countries as an "American subsidy". In truth, Canada's GDP is just over $22tn, around 24% less than the United States'.
The US imports approximately 60% of its crude oil from Canada, with Alberta alone supplying 4.3 million barrels per day. Also, Canada is the top export destination for 36 US states. Nearly $2.7bn worth of goods and services cross the border each day. Trade between the two countries amounted to more than $350bn in 2023.
For his part, Canada's prime minister, Justin Trudeau, who has recently decided to resign, has dismissed Trump's comments as a distraction from his threats to impose 25% tariffs on all goods and services from Canada.
