The Blubber

Trump: We had a good talk with Trudeau... but we are treated unfairly. We don't need Canadian cars, lumber, agriculture.

Speaking between calls with Prime Minister Justin Trudeau, U.S. President Donald Trump described their first conversation as “good” but expressed doubt that Canada could offer anything in their afternoon discussion to change his stance on tariffs.

During their morning exchange, Trump said he raised concerns about U.S. banks operating in Canada—seemingly shifting the rationale behind his tariff policy—alongside ongoing issues such as drug trafficking across the border and the trade deficit.

“I did ask (Trudeau) a couple of questions,” Trump said Monday from the Oval Office. “Canada is very tough. Canada is very, you know, we’re not treated well by Canada. And we have to be treated well.”

“That’s one of many things we talked about, and I think we’ll win most of the subjects,” he added.

Currently, 16 U.S.-based bank subsidiaries and branches operate in Canada, holding around CAD $113 billion in assets, according to the Canadian Bankers Association.

The Prime Minister’s Office confirmed the morning call—the first between the two leaders since Trump’s return to the White House—but provided no additional details beyond confirming discussions on trade and border issues.

Trump’s press secretary later confirmed that a second call between Trudeau and Trump began around 3 p.m. EST.

“I think we’re going to have another good conversation today,” Trump said ahead of the call. He also reiterated his long-standing suggestion that Canada should become the “51st state.”

“If people wanted to play the game right, it would be 100 percent certain that they would become a state,” Trump said. “A lot of people don’t like to play the game because they don’t have a threshold of pain, and there would be some pain, but not a lot.”

Can Canada Avoid Tariffs?

Uncertainty over Canada’s fate grew after Mexican President Claudia Sheinbaum announced a one-month pause on U.S. tariffs for Mexico, leaving open the question of whether Canada could negotiate a similar reprieve.

Asked whether Canada could still avoid tariffs set to take effect the following day, Trump was noncommittal.

“We’ll see what happens. I can’t tell you what’s going to happen,” he said. “I look at some of the deals made. I say: ‘Who the hell made these deals? They’re so bad.’”

The Canada-United States-Mexico Agreement (CUSMA) was originally signed by Trump, but unless a new deal is reached, Canadian provinces and industries are already preparing retaliatory measures. “Buy Canadian” campaigns are gaining traction, and provincial governments are considering removing U.S. products from shelves and canceling cross-border contracts.

“Today’s going to be a crazy day. All hands on deck. Team Canada. Zero politics,” Flavio Volpe, a prominent auto industry representative, posted on social media.