Trump dangles free missile defense, if Canada becomes the 51st state
Trump dangles free missile defense, if Canada becomes the 51st state originally appeared on TheStreet.
The crypto market traded flat on Wednesday as Bitcoin hovered around $109,000 and Ether stayed just above $2,670. But outside the charts, geopolitical tension took center stage after former U.S. President Donald Trump delivered an eyebrow-raising offer to Canada: become the 51st state, and access missile defense for free.
Trump said Canada would otherwise have to pay $61 billion to join his proposed "Golden Dome" missile defense system, a massive $175 billion project he claims will be operational by the end of his term in 2029.
'I told Canada, which very much wants to be part of our fabulous Golden Dome System, that it will cost $61 Billion Dollars if they remain a separate, but unequal, Nation,' Trump posted on Truth Social. 'But (it) will cost ZERO DOLLARS if they become our cherished 51st State. They are considering the offer!'
Canadian Prime Minister Mark Carney confirmed that high-level talks had been held over the defense system but brushed off Trump's statehood suggestion during a recent visit to the White House, saying his country was 'never for sale.'
Despite existing defense coordination through NORAD, the proposal has sparked fresh friction between the two North American allies — even as Trump tries to sweeten the deal.
There was no immediate official response from Canada following Trump's latest statement.
Geopolitical tensions — especially those involving major powers like the U.S. — often create uncertainty in traditional markets, which can spill over into crypto. When events like Trump's $61 billion ultimatum to Canada or broader military defense moves make headlines, investors tend to reassess global stability. This can push some toward crypto as a hedge, especially Bitcoin, which is often viewed as "digital gold" during times of fiat or geopolitical risk. However, this shift isn't always immediate or predictable — it depends on how serious and prolonged the tensions are.
At the same time, rising geopolitical friction can also lead to tighter regulations, cross-border capital controls, or increased surveillance, all of which impact how crypto moves globally. For example, any hint that Canada or the U.S. might clamp down on capital outflows or enforce stricter cross-border payment rules could drive local users to shift funds into crypto. So while crypto didn't react sharply to the Canada–Trump tension this week, long-term shifts in diplomatic alliances and defense posturing can subtly reshape the global crypto landscape.
Trump dangles free missile defense, if Canada becomes the 51st state first appeared on TheStreet on May 28, 2025
This story was originally reported by TheStreet on May 28, 2025, where it first appeared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
28 minutes ago
- San Francisco Chronicle
Trump administration sues Los Angeles in latest attack on sanctuary cities
President Donald Trump escalated his war against sanctuary policies on Monday in a lawsuit blaming alleged 'rioting, looting and vandalism' in Los Angeles on the city's refusal to allow its police to enforce immigration law or cooperate with federal agents. The suit comes two months after a judge barred Trump's administration from denying federal funds to sanctuary cities, and five years after the Supreme Court rejected Trump's challenge to California's sanctuary law. 'The United States is currently facing a crisis of illegal immigration,' Trump's Justice Department said in its lawsuit, filed in U.S. District Court. 'But its efforts to address the crisis are hindered by Sanctuary Cities such as the City of Los Angeles, which refuse to cooperate or share information' with immigration agents. 'Sanctuary policies were the driving force of the violence, chaos, and attacks on law enforcement that Americans recently witnessed in Los Angeles,' Attorney General Pamela Bondi said in a statement. But a state official said that as of mid-June, two weeks after Trump's deployment of 4,000 National Guard troops to Los Angeles, less than 20% of them were actually in the city. Some of those troops were sent to a rural area of Riverside County, 130 miles away, to raid a suspected marijuana farm. Meanwhile, studies contradict the administration's claims that undocumented immigrants are more dangerous than American citizens. A report last September by the National Institute of Justice, part of the U.S. Justice Department, said data from Texas showed that undocumented immigrants were arrested less than half as often as native-born Americans for crimes of drugs or violence. Similar findings were reached in October in a nationwide study by the American Immigration Council, a nonprofit that supports immigration. And in 2018, during Trump's first term, the National Institutes of Health, part of his administration, said data from all states between 1990 and 2014 'reveal that undocumented immigration does not increase violence.' In an unusual action, six Republican state legislators released a letter they addressed to Trump on Friday urging him to focus immigration enforcement on violent criminals rather than on all undocumented immigrants. 'Immigrants are essential to the fabric of America,' wrote the lawmakers, led by state Sen. Suzette Valladares, R-Santa Clarita (Los Angeles County), and federal agents should try 'to avoid the kinds of sweeping raids that instill fear and disrupt the workplace.' The Trump appointee whose office filed the suit, U.S. Attorney Bill Essayli, is a Riverside Republican known for attention-seeking behavior while serving in the state Assembly from 2022 to 2024. As a legislator, he denounced gun-control advocates as 'fake leftist groups' and unsuccessfully sought to require schools to notify parents whose children identified as transgender. After a bill banning parental notification won approval in the Assembly last year, Essayli accused its supporters of 'fearmongering,' had his microphone cut off by a Democratic floor leader, then banged his fist on the desk, called the leader a 'f---ing liar' and said he 'wasn't prepared to address the Chinese Communist Party house today.' Kevin Johnson, an immigration law professor and former law school dean at UC Davis, called the Trump administration's latest lawsuit 'a publicity measure.' 'There is no evidence that undocumented immigrants commit crimes at rates higher than U.S. citizens,' Johnson told the Chronicle. 'In fact, the data shows the opposite.' 'It was Trump's immigration enforcement in the Los Angeles area that prompted the massive protests, not the fact that Los Angeles was a sanctuary city,' said Stephen Yale-Loehr, an immigration law professor at Cornell University and author of multiple books on the subject. Trump took control of California's National Guard on June 7, saying its forces were needed to protect federal immigration agents and property from violence in protests against workplace raids. While a federal appeals court has allowed the deployment to continue, California officials are still urging the courts to conclude that the action is both illegal and dangerous. California's 2018 sanctuary law, the first in the nation, prohibits local and state officers from notifying immigration agents of the release dates of undocumented immigrants in their custody and holding them so that they can be picked up for deportation. The law does not apply to immigrants convicted of violent crimes. In a lawsuit by Trump's first administration, the law was upheld in 2018 by U.S. District Judge John Mendez of Sacramento, an appointee of President George W. Bush. 'California's decision not to assist federal immigration enforcement in its endeavors is not an 'obstacle' to that enforcement effort,' Mendez wrote. The 9th U.S. Circuit Court of Appeals upheld his ruling, and the Supreme Court denied review of Trump's appeal in June 2020, with only Justices Samuel Alito and Clarence Thomas voting to take up the case. U.S. District Judge William Orrick III of San Francisco cited that case in his ruling April 24 prohibiting the current Trump administration from withholding billions of dollars in federal funding from San Francisco and other local governments with sanctuary policies. As part of that case, multiple Bay Area law enforcement officials submitted declarations with the court detailing how sanctuary policies make things safer for all residents – the opposite of the Trump administration's contention. Sanctuary policies 'create an environment where individuals can be candid and forthcoming with law enforcement, and feel comfortable reporting crimes, serving as witnesses, and assisting with investigations,' San Francisco Sheriff Paul Miyamoto wrote in a declaration. He also said that responding to federal notification requests takes deputies' time away from ensuring the safety of those they're charged with protecting. But while there has been little change in the Supreme Court's membership in the last five years – only Trump's appointment of Justice Amy Coney Barrett to succeed the late Justice Ruth Bader Ginsburg – Yale-Loehr said the judicial climate seems to have changed. 'The Supreme Court has taken up many emergency appeals by the Trump administration this year,' the Cornell law professor said. 'Also, the court is more conservative now than in 2020. So we could see a ruling on sanctuary jurisdictions sometime this year.'
Politico
32 minutes ago
- Politico
NC GOP field ‘frozen' as Lara Trump weighs Senate bid
When Lara Trump considered jumping into the North Carolina Senate race four years ago, one of the most encouraging voices was her father-in-law. President Donald Trump told his daughter-in-law to seize the moment, according to three people close to Lara Trump. Like others in this story, they were granted anonymity to discuss internal conversations. 'You should do it,' he told her, one of the three people said. She would have, if not for having two young children, ages 1 and 3, at the time, the people said. Now, the younger Trump — who has previously had ambitions to hold elected office — is at a crossroads again amid Sen. Thom Tillis' announcement that he won't seek reelection. And while she weighs her options, the rest of the state GOP is at a standstill. 'The field is gonna be frozen,' said one political operative close to the White House. 'She has the right of first refusal.' Republican National Committee Chair Michael Whatley, who also served as the head of the state party, is interested in running but won't make a play until he knows Lara's decision, two people who know him say. There are several other Republicans eyeing the seat but with little name recognition or ability to raise money, they know they're second or third fiddle to the president's daughter-in-law and wouldn't dare ask for Trump's favor while she's still considering a run. 'I think people are really smart enough to not go in there,' said another person close to the White House. 'Everybody's kind of just been like, 'it's Lara's if she wants it,' The ball is in Lara Trump's court. It's that simple.' The White House and Lara Trump did not respond to requests for comment. But at least one person close to Lara Trump was skeptical she'd decide to enter the race. Her children are still young. And she's also making good money, the person said, through TV and podcast gigs as well as paid speeches, not to mention work with the Trump Organization. 'She'd have to give it all up,' the person said. But there's no doubt among Republicans that if she decides to run, she'll have the backing of the MAGA movement and that she'll clinch the nomination. Some political operatives think Lara Trump has as late as the fall to make up her mind. Others closer to the race are hoping she'll decide in the next month or so. 'They'll do it in the time that makes sense. It'll probably be sooner rather than later,' said the person close to the White House. 'And again, I think it's going to be a personal family decision for her.' It's the same dilemma Lara Trump faced in 2021, when she announced that June she was declining to run to replace the retiring Richard Burr because of her two young children. Trump said she would not have been able to give '100 percent' to a Senate bid, while adding that she was saying no 'for now, not no forever.' Her husband, Eric Trump, in a recent interview with the Financial Times, talked about the challenges of political life with young children when asked whether he or someone in his family would consider running for office. 'The real question is: 'Do you want to drag other members of your family into it?'' Eric Trump said. 'Would I want my kids to live the same experience over the last decade that I've lived? You know, if the answer was yes, I think the political path would be an easy one, meaning, I think I could do it … And by the way, I think other members of our family could do it too.' Beyond Lara Trump's personal considerations, there are some private disagreements in the MAGA political sphere about whether she's the best candidate for a purple state. One Trump ally said she may be too MAGA for North Carolina, as Democrats are likely to turn the race into a referendum on Trump's presidency. There's concern Lara Trump's candidacy could bolster this narrative in a race against a candidate like former Democratic Gov. Roy Cooper. But the political operative close to the White House argued she would be a huge boost for the party. North Carolina is the only battleground that Trump has carried three times, she can raise a ton of money, and would have her father-in-law's help turning out voters. And unlike four years ago, she's battle-tested, having helped run the RNC. She hosts her own TV show on 'Fox News,' raising her profile considerably. 'I could argue that it could be a tremendous asset,' the aforementioned political operative argued. 'It's not like the party elite would have concerns — between her time on her father-in-law's campaigns and her ability to raise cash, a lot of people think she'd be formidable.'
Miami Herald
34 minutes ago
- Miami Herald
Veteran analyst updates S&P 500 prediction after record rally
How high could stocks go? That's the question most investors are asking after the S&P 500 and Nasdaq Composite have delivered mouth-watering gains since President Donald Trump paused reciprocal tariffs on April 9. The S&P 500 has marched 24% higher, without much of a pause, while the technology-heavy Nasdaq Composite, which is weighted heavily toward the Magnificent 7, has climbed over 33%. Don't miss the move: Subscribe to TheStreet's free daily newsletter Those returns are impressive, especially considering that the S&P 500's average annual return since 1957 is about 10%, and the market was flirting with bear market territory only a little over two months ago. Stocks' rapid recovery isn't uncharted territory, though. The market has experienced sharp drops in the past, and how the S&P 500 performed after those declines may offer insight into how much gas for stocks may be left in the proverbial tank. Longtime veteran Wall Street analyst Sam Stovall, who has been navigating stocks for decades, recently offered thoughts on how the rest of the year may play out. There have been plenty of reasons to worry that stocks could tumble in 2025 amid a weakening economy, including: Sticky inflationDeclining GDP growthGrowing unemploymentLackluster confidence Inflation is down substantially from its 8% plus peak in 2022, but progress lately has been limited. The Personal Consumption Expenditures (PCE) index showed core inflation, excluding volatile energy and food prices, rose 2.7% in May. That was up from 2.6% in April and matched the rate from last September. Related: Morgan Stanley reboots stock market forecast after rally Many think the inflation picture will worsen in the coming months. Since February, President Trump has implemented 25% tariffs on Canada, Mexico, and autos, plus a 30% tariff on China and a 10% baseline tariff on all imports. Given that so much of what we buy, from clothing to electronics, is made overseas, many think businesses will pass along at least some of these higher costs to consumers this year. The prospect of higher prices isn't welcome news for already cash-strapped consumers and businesses, who may retrench spending, slowing our economy. There's already some evidence that economic activity is in trouble. First-quarter GDP declined 0.5%, and the World Bank estimates that full-year GDP in the U.S. will be just 1.4%, down from about 2.8% last year. The situation has led to an uptick in layoffs, which has increased the unemployment rate. Over 696,000 workers have been laid off through May, up 80% year over year, according to Challenger, Gray, & Christmas. The unemployment rate is 4.2%, up from its low of 3.4% in 2023. Risks that inflation reasserts itself and unemployment increases have taken a toll on consumer confidence. While confidence is better than in April, the Conference Board's Expectations Index is 69, handily lower than the 80 that often indicates a looming recession. Nevertheless, the stock market is forward looking, and since April, investors believe the worst of the risks are behind us and arguably got priced into stocks when they nose-dived this spring. Sam Stovall is a been-there-done-that Wall Street veteran analyst. He's built a long career analyzing the markets, including serving as managing director and chief investment strategist at S&P Global for over 27 years, before becoming chief investment strategist for CFRA, a major research firm. Related: Rare event could derail S&P 500 record-setting rally Stovall has a reputation for connecting the dots between the past and the present. He considered past sharp sell-offs and what happened after them and came away bullish. "The recent correction recovered all that was lost in only 80 calendar days, versus the traditional 236 days for all 25 corrections (declines of 10.5% to 19.9%) since WWII," said Stovall in a note to clients. "Investors shouldn't be too surprised by this speedy recovery, due to the swiftness of the initial selloff." The V-shaped recovery after the dramatic drop reflects a market that had become very oversold, very quickly. The baskets that have performed best since April's low have perhaps, unsurprisingly, been the groups that got hit the hardest. For example, the information technology sector, which comprises high flyers like Nvidia, is up 41% from the lows. The average return for the three worst-performing sectors - information technology, consumer discretionary, and communication services - is up 32%. More Wall Street Analysts: Analysts reboot Olive Garden parent's stock price targets as earnings loomAnalysts revamp forecast for Nvidia-backed AI stockIntuitive Surgical analyst raises eyebrows with new stock price target Those gains could continue, says Stovall, but he did offer a relatively tempered outlook for the third quarter. "The S&P 500 posted the weakest quarterly return, eking out only a 0.1% advance in Q3," said Stovall. "Five of its 11 sectors posted declines, led by communication services, consumer discretionary, energy, and materials." The third quarter's lackluster historical returns could mean it's a bit tougher sledding for stocks short term, but Stovall still thinks that stocks overall can deliver bigger returns through year's end. "Encouragingly, history indicates that quick drops to the -10% threshold typically result in a shorter and shallower total decline, followed by a more rapid recovery," said Stovall. "As a result, investors look forward to continued gains of between 6% and 10%, as was typically the case following declines of up to 20% since WWII, before slipping into a new decline of 5% or more; they just have to survive the traditionally challenging third quarter." Related: Analyst sends alarming message after S&P 500 hits all-time high The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
