Reality-checking Donald Trump’s claims about Canada in his international tariff speech

Standing within the Rose Backyard on Wednesday afternoon to unveil his new reciprocal tariffs, U.S. President Donald Trump once more falsely claimed that the U.S. subsidizes Canada by tons of of billions of {dollars} yearly and misrepresented Canada’s tariffs on U.S. dairy merchandise.

“We subsidize plenty of international locations and maintain them going and maintain them in enterprise,” Trump mentioned. “Within the case of Mexico, it is $300 billion. Within the case of Canada, it is near $200 billion a yr.”

That declare — which Trump has routinely made going way back to December — is unfaithful in a number of methods. What the U.S. president was referring to is his nation’s commerce deficit with Canada, that means Canada exports extra to the USA than the U.S. exports to Canada.

WATCH | Trump pronounces international reciprocal tariffs, spares Canada:

Trump targets world however skips Canada with new ‘Liberation Day’ tariffs

U.S. President Donald Trump has introduced sweeping new tariffs, together with 10 per cent levies on just about all imports, and considerably larger reciprocal tariffs in opposition to greater than 60 international locations, however Canada and Mexico had been spared for now.

In accordance with the Workplace of the USA Commerce Consultant, The U.S. items commerce deficit with Canada was $63.3 billion in 2024, down from $64 billion in 2023. That is far lower than Trump claimed on Wednesday.

There’s one other issue to think about: the value of power. In accordance with Statistics Canada, power exports corresponding to oil, pure gasoline and electrical energy make up about one-third of the products Canada despatched south final yr.

Specialists have beforehand instructed CBC Information the scale of the U.S. commerce deficit with Canada is basically a operate of oil costs. If oil costs go down the deficit shrinks, and vice versa if oil costs rise. In addition they say commerce deficits should not a type of subsidy.

Take away power, specialists instructed CBC Information, and it is truly Canada that has the commerce deficit.

Canada’s tariffs on U.S. dairy

Throughout his speech, Trump additionally claimed Canada imposes a “250 to 300 per cent tariff on lots of our dairy merchandise. They do the primary can of milk, the primary carton of milk at a really low value however after that it will get unhealthy.”

“Check out what occurs down the highway while you look slightly bit, it is not a reasonably image,” Trump added. “And it is not honest. It is not honest to our farmers, it is not honest to our nation.”

WATCH | Breaking down Trump’s claims about Canada’s dairy tariffs:

Is Trump proper about Canada charging 250% dairy tariffs? | About That

President Donald Trump says Canada has been ripping off the USA, imposing tariffs of as much as 400 per cent on imported American dairy merchandise. Andrew Chang breaks down Trump’s claims, explaining how dairy tariffs work and the way probably it’s that anybody is definitely paying such sky-high prices.
Photographs equipped by Reuters, Getty Photographs and The Canadian Press. Extra credit (Credit score: 9:17 Skotidakis/Fb), (Credit score: 9:21 Elite Dairy).

His declare will not be solely true. These excessive tariffs on U.S. dairy solely apply if exports exceed set quotas. Beneath the quotas, the U.S. dairy merchandise enter tariff-free due to the Canada-United States-Mexico Settlement (CUSMA), based on the U.S. Division of Agriculture.

In accordance with the Worldwide Dairy Meals Affiliation, the U.S. has by no means come near exceeding its quotas. However the affiliation argues it is “as a result of Canada has erected numerous protectionist measures that fly within the face of their commerce obligations made beneath [CUSMA].”

The place is Canada now with tariffs?

Regardless of Trump’s grievances on Wednesday, the White Home mentioned there will likely be no extra across-the-board levies utilized to Canada than what has beforehand been introduced.

Trump mentioned nonetheless that he’s going forward with a 25 per cent tariff on “all foreign-made” vehicles as of midnight Wednesday, which might have extreme implications for the Canadian auto sector.

The White Home mentioned that tariff fee will apply to Canadian-made passenger autos, however there’s a caveat — it should solely be levied on the worth of all non-U.S. parts in that car.

On Thursday morning, Prime Minister Mark Carney introduced Canada is retaliating in opposition to Trump’s newest transfer with a 25 per cent tariff on autos imported from the U.S. that aren’t CUSMA-compliant. Mexico won’t be impacted.

In March, Trump slapped 25 per cent tariffs on Canadian metal, aluminum and items that aren’t CUSMA-compliant. He additionally imposed 10 per cent tariffs on power merchandise beneath CUSMA, in addition to potash not coated by the commerce settlement.

Canada positioned retaliatory tariffs on roughly $60 billion price of U.S. items in response to Trump’s strikes final month.