Why Trump suggested Canada join the US as a state

Claiming that the United States is subsidising its two neighbours Canada and Mexico to the tune of $100 billion and $300 billion, respectively, incoming US President Donald Trump on Sunday said that if that is the case then these two countries better be a part of America.

Trump, 78, has threatened to impose hefty tariffs on both Canada and Mexico if they don't stop the flow of illegal immigrants into the US through their territories.

"We're subsidising Canada to the tune of over USD 100 billion a year. We're subsidising Mexico for almost $300 billion. We shouldn't be subsidising. Why are we subsidising these countries? If we're going to subsidise them, let them become a state (of the US)," Trump told NBC News in an interview, his first on a Sunday talk show after winning the November 5 presidential elections.

"We're subsidising Mexico, we're subsidising Canada, and we're subsidising many countries all over the world. All I want to do is have a level, fast, but fair playing field," he asserted.

Trump refuted the observations by some American CEOs that tariffs would cost the US and increase the cost of common commodities thus putting a strain on common people.

"They cost Americans nothing. They made a great economy for us. They also solve another problem. If we were going to have problems having to do with wars and having to do with other things, tariffs, I have stopped wars with tariffs by saying, you guys want to fight, it's great, but both of you are going to pay tariffs to the United States at 100 per cent. They have many purposes (for), tariffs if properly used. I don't say you use them like a madman. I say properly used," he said.

"But it didn't cost this country anything. It made this country money. We never really got the chance to go all out because we had to fight COVID in the last part. We did it very successfully. When I handed it over to Biden, the stock market was higher than it was just previous to COVID coming in. It was higher. Tariffs, if properly used, are a very powerful tool, not only economically, but also for getting other things outside of economics," he said.

"Are you going to impose these tariffs, or are they a negotiating tactic?" Trump was asked.

"Well, I'll give you an example. With Canada, and in particular Mexico, we have millions of people pouring into our country. I spoke with both (the leaders). I spoke with Justin Trudeau. He flew to Mar-a-Lago within... about 15 seconds after the call-in. It was at Mar-a-Lago. We were having dinner, talking about it," Trump said.

"I said to the president of Mexico and Justin Trudeau, if it doesn't stop, I'm going to put tariffs on your country at about 25 per cent," Trump insisted.