Fact-checking Donald Trump’s claims about Canada in his global tariff speech

Standing in the Rose Garden on Wednesday afternoon to unveil his new reciprocal tariffs, U.S. President Donald Trump once again made false claims about the relationship between the U.S. and Canada. Trump asserted that the U.S. subsidizes Canada by hundreds of billions of dollars every year, which is simply not accurate. The President has been repeating this claim since December, but the truth is that the U.S. trade deficit with Canada was $63.3 billion in 2024, a far cry from the $200 billion Trump stated.

The U.S. goods trade deficit with Canada is heavily influenced by the price of energy, with energy exports making up about one-third of the goods Canada sends to the U.S. Experts have explained that fluctuations in oil prices directly impact the trade deficit, and it is not a form of subsidy as Trump suggests. In fact, if energy exports are removed from the equation, it is Canada that actually has the trade deficit.

In addition to his false claims about subsidies, Trump also misrepresented Canada’s tariffs on U.S. dairy products. He stated that Canada imposes a “250 to 300 per cent tariff on many of our dairy products,” but failed to mention that these high tariffs only apply if exports exceed set quotas. Below the quotas, U.S. dairy products enter tariff-free under the Canada-United States-Mexico Agreement (CUSMA).

Despite Trump’s grievances, the White House confirmed that there will be no additional across-the-board levies applied to Canada beyond what has already been announced. However, Trump did proceed with a 25 per cent tariff on all foreign-made automobiles, which could have significant implications for the Canadian auto sector. In response, Prime Minister Mark Carney announced that Canada will retaliate with a 25 per cent tariff on vehicles imported from the U.S. that are not CUSMA-compliant.

In March, Trump imposed tariffs on Canadian steel, aluminum, and goods not covered by CUSMA, prompting Canada to retaliate with tariffs on approximately $60 billion worth of U.S. goods. The ongoing trade tensions between the U.S. and Canada highlight the complexities of international trade relationships and the importance of accurate information in shaping policy decisions.