President Donald Trump has escalated tensions with Canada, suggesting the nation should become "our cherished 51st state" as trade disputes intensify between the longtime allies.
The provocative comments came after both Canada and Mexico announced retaliatory tariffs in response to Trump's new 25 per cent import duties on their goods.
Canadian PM Justin Trudeau hit back with a 25 per cent tax on £85.9bn of US products, including a 10 per cent levy on energy imports. The first £16.6bn in tariffs, targeting American alcohol and fruit, starts Tuesday, with £69.3bn more following in three weeks.
Writing on Truth Social, Trump said: "We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason. We don't need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use."
He argued Canada would cease to be "viable" without US support, adding: "Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada - AND NO TARIFFS!"
Meanwhile, Mexican President Claudia Sheinbaum announced counter-measures, strongly rejecting Trump's allegations of criminal links. "We categorically reject the White House's slander that the Mexican government has alliances with criminal organisations," she posted on X.
The trade dispute has also drawn in China, which plans to challenge its 10% tariff through the World Trade Organisation, calling it a "serious violation" of rules.
Trump's administration maintains the tariffs aim to combat fentanyl trafficking and illegal immigration, despite warnings of rising consumer costs and economic risks.
Trump signed the order Saturday, citing an economic emergency, despite risks of a trade war and higher costs for American consumers.
It comes after France warned Donald Trump that America has "everything to lose" from a trade war with the European Union.
Foreign minister Jean-Noël Barrot stressed that thousands of US companies based in Europe would be the "first victims" if the new president imposes tariffs. The European Union would retaliate to such a step by Trump, he added.
But Mr Barrot stressed that Trump had not threatened to hit the EU with tariffs since his return to the White House.
"I think that's a good thing because the US has everything to lose from entering into a trade war with the European Union," He told France's Sud Radio.
"We are their main trade partner."
"If it's true that Americans buy more European products than the opposite, well Americans invest more in Europe than we invest in the US."
