Trump's comments came after his administration slapped heavy tariffs on Canadian steel, aluminum, cars, copper, and most recently, lumber
United States president Donald Trump reignited his controversial pitch for Canada to become America’s 51st state, telling senior military officials that the country could join the US missile defence shield “for free” — if it agreed to annexation.
The remarks, made at a high-level event in Virginia, come as cross-border trade tensions and tariff disputes continue to batter Canadian industries.
“Canada called me a couple of weeks ago. They want to be part of it. To which I said, well, why don’t you just join our country? Become 51, become the 51st state and you get it for free,” Trump said, referencing the US-developed Golden Dome missile defence system.
“I don’t know if that made a big impact, but it does make a lot of sense,” he said.
Trump’s comments followed months of economic brinkmanship, with his administration imposing steep tariffs on Canadian steel, aluminum, automobiles, copper and, most recently, lumber.
“Canada is having a hard time up there,” Trump said, pointing to the impact of tariffs and claiming his trade policy is shifting “trillions of dollars worth of investments to the U.S.”
Prime Minister Mark Carney, who has faced repeated overtures from Trump on statehood, has consistently rebuffed the idea.
“We will never, ever, in any way, shape or form, be part of the United States. America is not Canada,” Carney said in March.
When pressed again, Carney told reporters he had asked Trump to “stop with the 51st state taunts” during a private White House luncheon.
If Canada were to join the US, its housing market would be subject to American federal and state laws rather than Canadian regulations. Moreover, US buyers may find Canadian real estate more accessible, increasing demand in border regions and major cities. This could lead to some Canadian buyers facing new barriers or competition.
Easier mobility between states could also encourage migration, impacting regional housing demand and supply. Wage and employment shifts could influence affordability and housing demand, especially in border cities.
For Canadian mortgage professionals, the ongoing trade and tariff uncertainty continues to cast a shadow over economic forecasts and housing market stability.
Tariffs on key building materials—such as lumber, steel, aluminum, and copper—directly increase the cost of home construction and renovations. This can slow down new housing starts, delay projects, and push up prices for both new and existing homes.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
