Former US President Donald Trump declared that the United States does not require Canadian energy, vehicles, or lumber during his virtual address to the World Economic Forum in Davos.
Speaking via video link from Washington DC, Trump dismissed the importance of Canadian trade, stating "We don't need them to make our cars, we make a lot of them, we don't need their lumber because we have our own forests... we don't need their oil and gas, we have more than anybody."
The remarks came as Trump renewed threats to impose up to 25% tariffs on Canadian imports as early as February 1st. He claimed the US has a trade deficit with Canada between $200-250 billion, though official figures indicate a much lower number around $45 billion for 2024.
Trump also suggested Canada could avoid tariffs by becoming the 51st US state, drawing audible gasps from the Davos audience. "You can always become a state, and if you're a state, we won't have a deficit. We won't have to tariff you," he said.
Canadian Prime Minister Justin Trudeau responded by emphasizing the integrated nature of US-Canada trade relations. He noted that America's economic growth would require Canadian energy, minerals, steel, aluminum and other materials that Canada currently supplies as "a reliable and trustworthy partner."
Economic experts warn that potential tariffs on Canadian energy could increase gas prices for American consumers and impact Trump's energy policies. Canada currently supplies over half of US crude oil imports, with many US refineries depending on Canadian products.
The Canadian government has indicated it will consider countermeasures if tariffs are imposed, including possible restrictions on energy exports to the US. However, some provincial leaders, particularly in energy-producing regions, have expressed opposition to such retaliatory measures.