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What could 'economic force' to merge countries look like for Canadian businesses?

What could 'economic force' to merge countries look like for Canadian businesses?

CTV
Thursday, January 9, 2025 5:05 AM GMT

Economists, business leaders and politicians are reacting to U.S. president-elect Donald Trump's comments that he'd use 'economic force' to acquire Canada as the 51st state.

Economists, business leaders and politicians are reacting to U.S. president-elect Donald Trump's comments that he'd use "economic force" to acquire Canada as the 51st state.

While Trump's proposed tariffs are top of mind nearing his inauguration, economists say that power could take many forms.

"He can do damage; he can do serious damage," said Moshe Lander from the economics department at Concordia University.

"He can just keep ramping those (tariffs) up, 50 per cent, 100 per cent, 200 per cent. I mean, there's just no limit."

Trump claimed the U.S. has no need for Canadian goods and takes issue with the U.S. trade deficit with Canada.

According to Statistics Canada, the deficit with Canada has increased from around $81 billion in 2021 to nearly $109 billion in 2023, due in large part to Canadian oil and gas exports to the U.S.

Lander said if Trump wanted to ratchet up the pressure on Canada, he could pull out of the free trade agreement despite provisions that prevent the move, he could try and seize assets of Canadian companies operating in the U.S. and he could make it difficult for Canadians to travel south.

Read full story on CTV
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