Key facts
- Bank of Canada Governor Mark Carney has studied the risk of the U.S. annexing Canada.
- President Donald Trump has mused about the U.S. annexing Canada.
- Trump posted on social media in February 2025 about making Canada the 51st U.S. state.
- A trade agreement between Canada and the U.S. collapsed last month.
- Carney has spoken frequently with Trump since the trade talks failed.
- Canada is reducing its reliance on the U.S. for services like Starlink.
Bank of Canada Governor Mark Carney revealed that he has studied the potential risks of the U.S. annexing Canada and imposing economic coercion, as President Donald Trump has previously mused about such scenarios. Trump, in a February 2025 social media post, suggested Canada should become the "Cherished 51st State" with lower taxes and better military protection, while also proposing no tariffs.
The heightened tensions between the two nations were underscored last month when a trade agreement collapsed at the last minute, potentially leading to high tariffs on each other's goods. Carney stated in an interview that he has maintained frequent communication with Trump since the trade talks failed, describing their exchanges as direct and efficient.