Days before the federal election and after more than a week without commenting on Canada, U.S. President Donald Trump resurfaced his 51st state rhetoric Wednesday afternoon and suggested he could further raise auto tariffs.
The president was speaking to reporters from the Oval Office, when he repeated his false claim that the United States “subsidizes” Canada to the tune of $200 billion US a year.
“I have to be honest, as a state it works great,” Trump said. “Ninety-five per cent of what they do is they buy from us and they sell to us.”
The comments come as the Canadian federal election had become less focused on U.S. economic and sovereignty threats and as the Liberal lead over the Conservative Party has tightened in the past week.
If Canada didn’t trade with the U.S., Trump said, “as Trudeau told me, they would cease to exist … which is true, certainly, as a country.” The president said he called former prime minister Justin Trudeau “Governor Trudeau, affectionately.”
On tariffs, he said he was “working on a deal” with Canada, but later suggested he could raise them further.
“I’m working well with Canada. We’re doing very well,” Trump said, adding he didn’t think it was “appropriate” for him to weigh in on the Canadian election, despite seeming to do exactly that.
“I have spoken to the current prime minister. He was very, very nice. I will say we had a couple of very nice conversations.”
Which federal leader is best to negotiate with Trump?
The Prime Minister’s Office confirmed to CBC News that Liberal Leader Mark Carney has only had one conversation with the U.S. president, a telephone call on March 28. At the time, the two leaders described the call as productive and Carney said that Trump had respected Canadian sovereignty.
The Liberal leader has been campaigning on his ability to deal with Trump. In Victoria on Wednesday, Carney mentioned the U.S. president several times, calling for a “strong mandate” for a Liberal government.
“This is a time for serious leadership — of a united country. We need to come together so we can fight President Trump together,” Carney said.
Carney accused Conservative Leader Pierre Poilievre of an “American-style” approach to homelessness, affordable housing and mental health care. Poilievre’s campaign has focused on the cost of living and less government intervention.
Recent data from CBC’s Vote Compass suggested top election issues for voters have been shifting since last week’s leaders’ debates. Before the debates, the top issue recorded by the vote-gauging tool had been Canada-U.S. relations, while afterward, that shifted to the economy and cost of living.
Trump was asked whether he would increase tariffs on Canadian goods, which so far include levies on vehicles and auto parts, steel, aluminum, non-Canada-U.S.-Mexico Agreement compliant goods and an expected rise in tariffs on Canadian softwood lumber.
“At some point, it could go up,” Trump said of the tariffs, though it was unclear how broadly he was speaking. Most of his comments were focused on the auto industry, but he also said no auto tariff increases are currently planned.
“All we’re saying is we don’t want your cars, with all due respect,” the president said. “We don’t need their oil. We don’t need their lumber. We don’t need their cars.”
The president repeated his $200-billion line twice Wednesday. Since December, Trump has cited various figures, between $100 billion US and $250 billion US, in saying that the country “subsidizes” Canada. Journalists and trade experts have repeatedly debunked the claim and said it’s not clear where the U.S. president obtained such a large figure.
Canada’s trade deficit with the U.S. was $63 billion US last year, down from just over $64 billion US in 2023. But Canadian tourists visiting the country — which border agency data shows is dropping — makes up for some of that gap. Trade deficits are also not considered subsidies.
It’s also far from the first time the president says the U.S. “doesn’t need” Canadian oil, gas, vehicles or lumber. He started using the line in his speech to leaders at the World Economic Forum, three days after his inauguration for his second term.
NDP Leader Jagmeet Singh commented on Trump’s remarks upon his arrival at a campaign stop in Winnipeg.
Singh called the president’s suggestion he would further raise tariffs “devastating news” and said the federal government “should have immediately” raised employment insurance.
“It’s impossible for workers to survive with anything less than [their salary],” he said.
Since the start of the trade war, Canada has retaliated with tariffs on about $60 billion worth of U.S. goods, as well as levies on American-made components of automobiles coming in from the U.S.
The government has also announced aid for some businesses and expanded EI eligibility to help Canadians deal with the economic turmoil.
