Summary
In a virtual speech at the World Economic Forum, Trump suggested Canada could become a U.S. state to avoid his proposed tariffs on imports.
The remark elicited gasps from the audience.
Trump claimed the U.S. does not need Canadian lumber, energy, or vehicles, vastly overstating the trade deficit between the two nations.
He reiterated his intention to impose tariffs, potentially as high as 25%, on imports from Canada and Mexico starting February 1.
Economists warn such tariffs would raise prices for U.S. consumers.
Yeah but it only really works if it’s targeted. Threatening blanket tariffs on countries that represent 60% of all imports (EU, China, Mexico, Canada) takes a bit of the impact away, it’s unlikely domestic production could handle all that. Even if it could, why wouldn’t American companies raise their prices as much as they felt they now could?