Trade disputes between allies are nothing new. But according to Frank Holmes, executive chairman at HIVE Digital Technologies, the recent deterioration in relations between the United States and Canada is not about tariffs or policy disagreements.
In an interview with TheStreet Roundtable , Holmes said the real damage came from how the criticism was framed.
Attacking a political leader is one thing, he argued, but broad language directed at Canada as a whole was a much bigger mistake.
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What Trump said
Trump has repeatedly referred to Canada as the 51st state in his second administration, and has been extremely critical of the government there.
On March 10th, Trump made a post to Truth Social , calling Canadian Prime Minister Mark Carney the "Governor of Canada."
“Had Trump used vilifying language against Justin Trudeau, the former prime minister, he could do that all day,” Holmes said. “But to turn around and be disparaging regarding all the country of Canada, that is the big mistake.”
Holmes pointed to what he described as early signs of backlash from Canadian consumers and travelers.
He said California wine had effectively disappeared from Ontario’s government-run liquor system and that millions of flights to the United States had been canceled by Canadian tourists.
If that sentiment continues, Holmes argued, the fallout could hit tourism -heavy states such as Florida, Texas, and South Carolina especially hard.
“Canadians are really upset about denigrating the country,” Holmes said. “They’re really disappointed, and you can’t do trade that way.”
He was especially critical of suggestions that Canada should become the 51st state, calling the idea unserious and politically self-defeating. “That is the stupidest thing ever,” Holmes said.
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Alliances depend on trust
Holmes also drew a distinction between disagreements with political leaders and relationships with allied countries. He said strong democracies depend on institutions and checks and balances, which he sees in both Canada and the United States.
For Holmes, the broader lesson is that international influence depends not only on economic leverage or military strength, but also on respect.
Trade can be renegotiated. Alliances can be tested. But once public trust begins to erode between neighboring countries, rebuilding it can take far longer than a news cycle.
HIVE is the oldest publicly traded Bitcoin mining company in the world and is headquartered in Vancouver.
This story was originally published by TheStreet on Mar 11, 2026, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
