Overview

• President Trump has floated the idea of annexing Canada, citing trade deficits and access to natural resources as justification for his proposal.
• Trump’s administration has threatened sweeping tariffs on Canadian goods, though implementation has been delayed for 30 days following negotiations.
• Canadian Prime Minister Justin Trudeau and officials have expressed disappointment and concern, viewing the annexation rhetoric and tariffs as serious threats to sovereignty and economic stability.
• Canada is considering retaliatory measures, including export taxes on oil and gas, which could disrupt U.S. refineries heavily reliant on Canadian crude.
• Experts warn that escalating tensions could harm both nations' economies, while Canadian officials emphasize the importance of their interconnected supply chains and trade relationships.