On Tuesday’s broadcast of the Fox Business Network’s “Kudlow,” host Larry Kudlow said that he doesn’t understand President Donald Trump’s 51st state push with Canada and “Canada’s not the enemy. They are a longtime partner and ally.” And while there are some issues with Canada, we need their oil at the moment and “I’d like to see Mr. Trump save the vitriol for China, which is our worst enemy.”
Kudlow said, “Canada’s not for sale, according to Prime Minister Carney. And polls show, by a huge margin, the vast majority of Canadians agree with their new Prime Minister. Indeed, that issue was one of the deciding issues in the campaign that elected Mr. Carney in the first place. So, I never really understood President Trump’s logic constantly pursuing this 51st state business, except it may as well have been a hangover from the Justin Trudeau era, where Mr. Trump had a very strong dislike for Trudeau, and rightly so. … But stepping back from all of that for a moment, I dare say Canada’s not the enemy. They are a longtime partner and ally. Now, they have weaknesses. We’ll get to that in just a moment. But when it comes to pouring it on, I’d like to see Mr. Trump save the vitriol for China, which is our worst enemy.”
He continued, “[A]fter negotiating for two and a half years…then signing the phase one China trade deal, the Chinese went out and adhered to none of it. That’s right, none of it, especially damaging lies about their failure to stop the precursor chemicals for fentanyl that they flood us with on a constant basis. Sometimes, Mr. Trump says the U.S. has a 200 billion trade deficit with Canada, but the numbers don’t bear that out. Canada supplies about one-quarter of the refined oil used in America. And so, if you exclude oil imports, the U.S. actually has about a $35 billion trade surplus in goods with Canada. It’s a rare surplus country. By the way, we do need their oil, at least at the moment we need it.”
Kudlow added, “Now, Canada’s got problems with unfair banking regulations, a digital services tax on American companies, and a revenue tax on U.S. online streaming companies. And we have age-old differences on things like lumber and dairy, so I get all that. And the USMCA trade deal, well, that’s going to be under review. Hopefully, that review will be completed about a year from now when it’s due in May 2026. So, I am glad the Carney-Trump meeting was cordial and calm. Somehow, I don’t think Canada is America’s real enemy, and I still believe that the Ronald Reagan vision of a North American free trade zone, Canada, U.S., and Mexico, I still believe that’s possible if some of the kinks and glitches can be worked out. Maybe it is, maybe it isn’t. But I also believe this: China is our real enemy. And we should focus on that one.”
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