Elected U.S. President Donald Trump announced that he would stop providing financial support to Canada and Mexico. If these countries wish for such support to continue, they must become the 51st and 52nd states of the U.S., he stated in an interview with NBC News.
"We subsidize Canada by over $100 billion a year, and we subsidize Mexico by nearly $300 billion. Why are we subsidizing these countries? Let them become new states," Trump said.
This refers to the trade balance deficit the U.S. has with these two countries; however, Trump exaggerated the figures, as in 2023, the deficit was $41 billion with Canada and $162 billion with Mexico.
Trump's remarks came in the context of discussions about imposing 25% tariffs on trade with these countries.
Previously, Trump promised that on his first day in office after the inauguration on January 20, he would impose 25% tariffs on goods from these two countries if their governments did not make sufficient efforts to combat illegal immigration and drug trafficking.
In response, Mexico's Economy Minister Marcelo Ebrard warned that such a move would lead to a loss of 400,000 jobs in the U.S. and an increase in prices. He stated that American companies producing goods in Mexico would also be at risk, as the introduction of tariffs would effectively double taxes. For instance, pickups sold in the U.S., 88% of which are assembled in the republic, would cost on average $3,000 more.
On her part, Mexico's President Claudia Sheinbaum threatened to raise tariffs in retaliation.
Canadian Prime Minister Justin Trudeau also responded to Trump's statement, promising to enhance border control measures to reduce the flow of illegal immigration into the U.S., while the country's Minister of Public Safety, Dominic LeBlanc, mentioned the potential use of drones and helicopters for this purpose.
Additionally, Trudeau visited Trump at his Mar-a-Lago residence in Florida on November 29 to personally discuss tariff issues.
Sources from Fox News reported that the American president jokingly suggested to Canada to become the 51st state of the U.S. and Trudeau the governor.
Currently, there is tariff-free trade between the three countries under the USMCA agreement, signed by Trump during his first presidential term. A review of the document is scheduled for 2026.