President Trump acknowledged that the across-the-board tariffs he ordered into effect Saturday on imports from Canada, Mexico and China might cause some “pain,” but argued that they will pay off in the long term.
The 47th president also once again brought up the idea of annexing Canada, saying the country “should become our Cherished 51st State” to reap the benefits of lower taxes, a strong military and no tariffs — an offer the northern neighbor has repeatedly spurned.
“This will be the golden age of America! will there be some pain? Yes, maybe (and maybe not!). but we will make America great again, and it will all be worth the price that must be paid,” Trump, 78, wrote on Truth Social Sunday in all capitalization.
“We are a country that is now being run with common sense — and the results will be spectacular!!!”
Trump had warned China, Canada and Mexico last year to take measures to rein in the fentanyl crisis or face tariffs.
He also told Canada and Mexico to crack down on illegal immigration.
All three countries are America’s largest three trading partners.
He had given them until Saturday to comply with his demands and followed through on his threat after being unsatisfied with the results.
Trump has long been a fan of tariffs and slammed critics of his move, saying that the “tariff lobby” is “always wrong.”
He accused free trade proponents of allowing other countries to take advantage of the US by allowing “crime, and poisonous drugs” to “freely flow into America.”
“Those days are over!”
The 47th president first issued an ultimatum last November demanding concessions from Canada, China, and Mexico.
“Those days are over!”
Together, trade between the US and those three countries is about $1.4 trillion annually and over 40% of US total imports. For context, the US gross domestic product clocked in at $27.36 trillion in 2023, according to the US Bureau of Economic Analysis.
Canada has announced retaliatory tariffs on $107 billion worth of US goods and Mexico has also vowed a response, though it has refrained from divulging details so far.
“We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason,” Trump added of the northern neighbor. “We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use.”
“Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true!”
Both of the US neighbors are disproportionately reliant on the US for exports than America is on them.
Roughly 75% of Canada’s exports go to the US while only about 13% of American exports go to Canada. Meanwhile, about 80% of Mexican exports flow to the US, while 16% of US exports go to them.
About 14% of US imports come from China, while about 15% of Beijing’s exports go to the US.