Trump makes another statement about Canada: assures that the US does not need Canadian energy and cars
Kyiv • UNN
At a forum in Davos, Trump said that the United States does not need Canadian energy, cars, or timber. He threatens to impose a 25% duty on Canadian imports starting February 1.
US President Donald Trump said in a speech to world business leaders at the World Economic Forum that the US does not need Canadian energy, vehicles or timber, UNN reports citing the BBC.
Details
Trump also reiterated his threat to impose tariffs on the country, saying that this could be avoided if the neighboring country decided to become a US state.
"You can always become a state, and if you are a state, we will not have a deficit. We won't have to charge you duties," he said to gasps from the audience in Davos.
Trump threatened to impose a duty of up to 25% on Canadian imports, possibly by February 1.
The renewed threat of tariffs was met with deep concern by trade-dependent Canada.
But she also said she would consider substantial countermeasures, including a dollar-for-dollar response, if the Trump administration gets its way.
Approximately 75% of Canada's exports go south. In contrast, Canada accounts for a much smaller share of U.S. exports - 17% - although it is the second largest trading partner of the United States after Mexico.
In his speech on Thursday, Trump said that Canada "has been very difficult to deal with over the years.
"We don't need them to produce our cars, we produce them in large quantities, we don't need their timber because we have our own forests... we don't need their oil and gas, we have more than anyone else," he told the forum via video link from Washington.
Trump repeated the claim that the US trade deficit with Canada is between $200 and $250 billion. It is unclear where he got this figure from.
The trade deficit with Canada, which is expected to reach $45 billion in 2024, is mainly driven by US energy needs.
The North American automotive industry also has highly integrated supply chains.
Auto parts can cross the borders between the US, Mexico, and Canada several times before the car is finally assembled.
Trump also linked the tariffs to border security, saying that they would be imposed if Canada did not strengthen security on the common border.
Canadian Prime Minister Justin Trudeau has repeatedly stated that everything is on the table in response to the imposition of duties.
This includes a tax or an embargo on energy exports to the United States, although some Canadian provincial leaders disagree with this response.
On Thursday, Trudeau told reporters that Canada's goal is to avoid US tariffs entirely, but it will "gradually" increase its retaliatory measures to ensure that tariffs are quickly lifted if they are imposed.
Canada is also positioning itself as a reliable trading partner and a reliable source of energy and critical minerals in the United States, lobbying U.S. lawmakers to avoid tariffs.
Economists suggest that US energy security depends on Canadian products.
According to a recent analysis by TD Bank economists, Canadian energy exports amounted to almost $170 billion in 2024.
Trump also said on Thursday that businesses should manufacture their products in the US if they want to avoid tariffs.
Tariffs are a central part of Trump's economic vision - he sees them as a way to grow the US economy, protect jobs, and increase tax revenues.
The new president has ordered federal officials to review US trade relations for any unfair practices by April 1.