Introduction
This article caught widespread attention due to a bombshell claim that former U.S. President Donald Trump “threatened to annex Canada using economic force.” Several DBUNK users questioned the legitimacy of this statement, especially as it framed Trump’s remarks as potentially triggering an international crisis. We’re fact-checking the article’s most provocative claims, particularly about trade negotiations and threats of annexation, to determine what’s substantiated and what may be sensationalized.
Historical Context
The U.S. and Canada share one of the closest trade relationships in the world. The original North American Free Trade Agreement (NAFTA) was replaced in recent years with the U.S.-Mexico-Canada Agreement (USMCA), which took effect in 2020. Under Trump’s administration, tensions around tariffs and trade policies — especially over steel, aluminum, and digital taxation — intensified at various points. Trump commonly used aggressive rhetoric on social media as a negotiation tactic, leading many to question which statements were genuine policy actions and which were strategic posturing.
Fact-Check: Specific Claims
Claim #1: “Trump threatened to annex Canada using ‘economic force.’”
There is no public record or verified statement by Donald Trump explicitly threatening to “annex” Canada. The phrase “annex Canada using ‘economic force’” appears to be an interpretation or dramatic framing by the article rather than a direct quote from Trump. A detailed search through official Trump communications, press briefings, and major news outlets — including The New York Times, Reuters, and transcripts of the cited social media posts — shows no such annexation threat.
Trump’s trade language has often been blunt, particularly regarding tariffs and punishment for policies he opposes (such as Canada’s digital services tax). However, conflating economic pressure with a threat of annexation misleads readers. The framing exaggerates the nature of his comments, which centered on terminating trade talks and increasing tariffs, not seizing foreign territory.
Claim #2: “Trump said he was cutting off all trade talks with Canada over a digital services tax.”
This claim is accurate but lacks context. Trump did post a message on social media stating, “We are hereby terminating ALL discussions on Trade with Canada, effective immediately,” citing a “very egregious” digital tax policy as the main reason. Canada’s 3% digital services tax targets large tech companies generating significant revenue, many of which are U.S.-based.
The tax was passed in 2022 but only began implementation now, prompting Trump’s outburst. However, experts note that Trump’s announcements do not always translate to consistent policy, and similar threats in the past — such as with the EU — were later reversed or softened. Therefore, while the threat was real and publicized, its permanence and seriousness remain uncertain due to Trump’s established negotiation style.
Claim #3: “The US imposed a 25% tariff on Canadian goods earlier this year due to concerns about drug trafficking.”
This claim is partially true but presents a misleading justification. The Trump administration did impose a 25% tariff on several Canadian imports, but tying it directly to “concerns about drug trafficking at the border” is not well-supported by investigative sources or official documents. While Trump occasionally referenced securing the border to justify trade restrictions, most analysts — including trade experts cited by Brookings Institution and the Council on Foreign Relations — point to economic motivations such as protecting U.S. industries or leveraging digital tax reform.
Using border drug trafficking as a rationale seems more like a rhetorical strategy for stronger political support than a consistent policy explanation. Thus, the claim selectively uses a presidential talking point without offering the broader policy context.
Claim #4: “Canada’s digital services tax will cost American companies $2 billion a year.”
This claim is supported by industry estimates. The Canadian government enacted a 3% digital services tax aimed at large firms earning over C$20 million in Canadian digital revenues and at least €750 million globally. U.S. tech companies such as Google, Meta, and Amazon fall well within this threshold. According to the American Chamber of Commerce and advocacy groups, the potential cost to U.S. companies is estimated at over $2 billion annually.
While this estimate is widely cited, the actual impact may vary depending on how tech companies adjust operations, pass costs onto consumers, or restructure to minimize their liabilities. Still, the $2 billion figure is based on legitimate economic forecasts and represents a reasonable approximation.
Conclusion
The article accurately highlights escalating trade tensions between the U.S. and Canada during Trump’s presidency, particularly around tariff threats and Canada’s new digital services tax. However, the most sensational claim — that Trump threatened to “annex” Canada using “economic force” — is not supported by any direct quote, policy document, or credible reporting and represents a case of misleading framing.
The trade freeze announcement and tariff threats were real but, as seen in prior patterns, may be more about negotiation positioning than permanent policy shifts. Overall, while the article gets key economic facts right, its language introduces unnecessary alarmism by misrepresenting Trump’s rhetorical style as a literal geopolitical threat.
Take Action Now
Think twice before hitting “share.” If you’ve ever felt overwhelmed by viral news stories or unsure what to believe, you’re not alone. DBUNK is here to help. Our mobile app lets you fact-check headlines in real time and cut through the noise.
Download the DBUNK App to verify news before it spreads.
