'Canada has been very bad to us, they have to start paying up': Donald Trump

Washington DC: US President Donald Trump reiterated his offer to make Canada the 51st US state while accusing Ottawa of being "very brutal" to Washington in terms of trade.

He questioned why should the US provide subsidies to Canada and offered that if it indeed becomes a US state, it will receive US military and low taxes.

"Canada has been very bad to us on trade. But now Canada is going to have to start paying up. Canada has been tough on the military because they have a very low military cost. They think we are going to protect them with our military, which is unfair. So Canada is going to be in a very serious situation...we don't need their product and yet they survive...we do 95 per cent of what they do," Trump said in a press conference on Thursday (local time).

Trump argued that Canada's trade policies have resulted in significant financial losses for the US, citing a staggering USD 200 billion annual deficit. He believes that if Canada were to become the 51st state, it would be a more beneficial partnership for the US.

"Their taxes would go down greatly, their security would go up greatly, amazing things happen to Canada. Why would we pay USD 200 billion in subsidy to Canada, when they're not a state? you do that for a state, you don't do that for another country...so I think Canada is going to be a very serious contender to be our 51st state," he added.

Trump also slammed the European Union, accusing them of being "very tough" on companies, including tech and airlines.

"The European Union has been very tough on companies. They sued Apple, they sued Google, they sued Facebook, they sued many other companies...so they have been very tough. Airlines have called me up and said 'Could you help us with Europe, they are charging us so many different fees'...European Union has been brutal on us for trade," the US President further said.

Notably, Trump has repeatedly attacked Canada accusing them of imposing higher tariffs on the US. He has offered to make Canada the 51st state of the US, and mocked outgoing Canadian Prime Minister Justin Trudeau as "Governor of Canada".

Earlier this month, Trump announced tariffs of 25 per cent on imports from Canada and Mexico as well as an additional 10 per cent on goods from China.
However, he later paused the tariffs for 30 days, saying that he has secured new commitments on improving border security from the two countries.