US President-elect Donald Trump escalated his remarks about making Canada part of the US during a press conference at his Mar-a-Lago resort on Tuesday. And he reiterated that he intends to put “substantial” tariffs on goods from Canada and Mexico.

Asked if he would use military force to annex Canada, he replied “no — economic force. Because Canada and the United States, that would really be something. You get rid of that artificially-drawn line and you take a look at what that looks like, and it would also be much better for national security — don’t forget, we basically protect Canada.”

Trump said the US is subsidizing Canada to the tune of $200 billion a year, a reference to the US trade deficit and possible other factors. 

The US trade deficit in goods and services in 2023 was $40.6 billion, according to US Census Bureau data. It’s driven by energy exports: the US buys more than 4 million barrels a day of Canadian crude oil during some months. 

Trump said the US doesn’t need “anything” that Canada produces.  

He said he’d rather make cars in Detroit instead of relying on the highly-integrated continental auto supply chain, and not buy Canadian lumber or dairy. When discussing lumber, Trump said he could use an executive order to “un-restrict” it, implying the US could ramp up domestic supply.

“They should be a state, that’s what I told Trudeau when he came down,” Trump said, an apparent reference to a dinner meeting at Mar-a-Lago between the two men in late November. 

The Canadian dollar has dropped versus the greenback since Trump made a threat on Nov. 25 to put 25% tariffs on Canada and Mexico. The loonie was down 0.1% to C$1.4345 per US dollar as of 1:33 p.m. in New York. 

Trudeau’s office didn’t immediately reply to a request for comment. Members of his government have previously played off the 51st state remarks as a joke. 

Trudeau announced his resignation on Monday, saying he doesn’t have the support from within his Liberal Party to lead it into an election this year. 

Conservative Party Leader Pierre Poilievre, whom polls say is the odds-on favorite to win that election, has said Canada would “never” be a US state. Asked about those comments on Tuesday, Trump said: “Then maybe he won’t win. But maybe he will. Listen, I don’t care what he says.”

A representative for Poilievre didn’t immediately reply to a request for comment.