His suggestion that Canada become the 51st state resonates because it exposes how our fractured policies undermine our economic potential

Sylvain Charlebois

For interview requests, click here

Donald Trump’s suggestion that Canada should become America’s 51st state is absurd. Yet the absurdity is precisely what makes it so provocative, drawing attention to a fundamental weakness in Canada’s economic framework.

Trump’s remarks highlight an uncomfortable truth: when it comes to trade, Canada is often more fragmented than unified. In many cases, doing business with the United States is easier than trading across provincial borders.

This dysfunction is not new. Interprovincial trade inefficiencies have been a persistent issue, with provinces prioritizing the U.S. market because it offers fewer barriers, greater economic returns, and simpler processes. Trump’s comments, while inflammatory, underscore Canada’s over-reliance on the U.S. and the lack of co-operation within its own borders.

Alberta’s energy sector illustrates this disjointed approach. Alberta Premier Danielle Smith has repeatedly voiced frustration over Eastern Canada’s refusal to support cross-country pipelines, leaving Alberta heavily reliant on the U.S. for exporting its resources. Alberta’s energy is essential to Canada’s economy, yet provinces in the East resist pipeline projects that could strengthen the national energy market.

Trump 51st state comment stings because it highlights Canada’s fragmented interprovincial trade system

Trump’s 51st state comment highlights Canada’s interprovincial trade dysfunction.

Recommended
The high cost of interprovincial trade restrictions in Canada


Tear down these walls, premiers!


Canadians don’t know their own history – and it’s holding us back


This lack of co-operation is especially galling when Alberta’s equalization payments are considered. Alberta contributes billions of dollars annually to support social programs in provinces like Ontario and Quebec, yet these same provinces are quick to oppose policies that would benefit Alberta’s economy. This imbalance highlights a clear hypocrisy in Canada’s economic relationships.

The agricultural sector is similarly plagued by inefficiencies. Supply management policies governing dairy, poultry, and eggs create unnecessary barriers, with each province operating its own quotas. For instance, a dairy farmer in Quebec faces significant regulatory hurdles just to sell milk to processors in Ontario. In British Columbia, chicken costs 25 to 30 per cent more than in other provinces, while food prices in northern communities are even higher, driven by logistical barriers and fragmented policies.

Even in less regulated sectors like wine, progress is slow. Alberta and British Columbia recently reached an agreement to ease interprovincial wine trade, but Ontario and Quebec continue to resist. These inefficiencies hurt consumers and producers alike, reducing competitiveness and driving up costs.

Small businesses and farmers face additional challenges. A butcher in Alberta operating in a provincially inspected facility cannot sell beef to Saskatchewan, even if there is demand. Farmers near provincial borders deal with varying regulations on pesticides, fertilizers, and equipment, creating logistical headaches that increase costs and reduce productivity. Inconsistent rules around food labelling, packaging, and transportation further complicate matters. A fruit producer in British Columbia, for example, must adjust packaging to meet Ontario’s specific requirements. These unnecessary costs undermine Canada’s ability to compete, even within its own borders.

Even well-meaning local food initiatives contribute to the problem. Schools in Ontario and Quebec that prioritize purchasing locally grown apples make it harder for British Columbia growers to access those markets. While the goal is to support local producers, the result is a more fragmented national market.

The consequences of these fragmented policies are far-reaching. Canada’s internal trade barriers weaken its competitiveness and leave provinces overly reliant on the U.S. for economic growth. During trade disputes with the U.S., Eastern provinces have historically been quick to sacrifice others—most notably Alberta—to protect their own interests. This pattern reinforces a lack of national unity and demonstrates the risks of Canada’s over-reliance on external markets.

Trump’s rhetoric about tariffs and trade, while provocative, highlights the vulnerabilities in Canada’s economic framework. If Canada is to assert itself as a strong and competitive economy, it must start by addressing its internal trade barriers. Eliminating provincial quotas, harmonizing regulations, and creating a unified market are essential steps toward strengthening the national economy.

Trump’s 51st state comment should serve as a wake-up call for Canadians. It exposes how fractured policies are undermining national unity and economic potential. If Canada wants to reduce its reliance on the U.S. and become a more competitive marketplace, it must do better. The path forward requires tearing down the walls that divide provinces and building a truly unified economy.

Explore more on Interprovincial trade, Canadian economy, Canada-U.S. relations 


© Troy Media

Troy Media is committed to empowering Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in building an informed and engaged public by delivering reliable content that strengthens community connections, enriches national conversations, and helps Canadians learn from and understand each other better.