Canada Rejects U.S. Statehood, Eyes EU Defense Deal

Tensions have risen between Canada and the U.S. after President Donald Trump proposed Canada join the U.S. 'Golden Dome' missile defense system for free if it became the 51st state, otherwise requiring a $61 billion payment. Both Prime Minister Mark Carney and UN Ambassador Bob Rae rejected the offer, with Rae comparing it to a 'protection racket' and emphasizing Canada's sovereignty. Canadian officials expressed surprise as the cost and terms were not disclosed in prior talks. In response, Canada is seeking to strengthen its defense partnership with the European Union, aiming for a new agreement by July 1 to lessen reliance on U.S. defense procurement. The proposal announcement led to a surge in defense stocks and a dip in cryptocurrencies, reflecting market uncertainty. Despite Trump's suggestions, Canadian officials maintain that statehood is not being considered and are pursuing diversified security ties.