By Charles Switzer
3:05am PDT, May 8, 2025
Tensions Ahead of U.S.–Canada Meeting
In the lead-up to his Tuesday, May 6, meeting with newly elected Canadian Prime Minister
Mark Carney, President
Donald Trump took to Truth Social to express his views on the
U.S.–Canada relationship.
Trump's remarks — made just before the scheduled meeting — drew attention due to their controversial nature and the inaccuracies they contained.
Here's a rundown of everything the president claimed about the U.S.-Canada relationship, and a glimpse of where future deals — or tensions — may lie.
Read on for all the details…
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Trump's Post on Truth Social
Just minutes before meeting Canadian Prime Minister Mark Carney, President Donald Trump shared on Truth Social:
"I look forward to meeting the new Prime Minister of Canada, Mark Carney. I very much want to work with him, but cannot understand one simple TRUTH — Why is America subsidizing Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection and many other things? We don't need their Cars, we don't need their Energy, we don't need their Lumber we don't need ANYTHING they have other than their friendship, which hopefully we will always maintain. They, on the other hand, need EVERYTHING from us! The Prime Minister will be arriving shortly and that will be, most likely, my only question of consequence."
The Reality of U.S.-Canada Trade Relations
Donald Trump's claim about U.S. subsidies to Canada is false.
In fact, the U.S. has a trade deficit with Canada, not a subsidy. Economists agree that the trade relationship between the two countries is mutually beneficial. In reality, Canada's trade barriers, particularly tariffs on dairy products have exemptions.
According to Daniel Dale, CNN's fact-checker, the U.S. is not even close to reaching the maximum quota for tariff-free dairy exports to Canada as stipulated in the USMCA, a deal negotiated under Trump's administration.
Dale further clarified that nearly all U.S. agricultural exports to Canada are tariff-free. He said, "The milk stuff, the dairy stuff, that exists but again, there are exemptions. And number two, those are the exception, not the rule."
Trump's Misleading Claims on Tariffs and Military Spending
In addition to his claims about subsidies, Donald Trump also made inaccurate remarks about Canada's military spending. He asserted that "Canada spends less money on military than practically any nation in the world" and "they pay NATO less than any nation."
However, this claim is not accurate. Daniel Dale debunked it, noting that while Canada's military spending as a percentage of GDP is low, it is not the lowest within NATO. In terms of absolute military spending, Canada ranks eighth in NATO, not the lowest.
Dale pointed out, "Canada is the 16th highest absolute military spender in the world." He further explained, "In terms of spending as a percentage of GDP, Canada is fifth-lowest in NATO not lower than any nation."
The Trade Deficit Exaggeration
Another claim that Donald Trump frequently repeats is the assertion of a massive $200 billion trade deficit with Canada.
This figure is highly exaggerated, as the actual trade deficit for 2024 was just under $40 billion, according to Daniel Dale. If considering only goods (ignoring services where the U.S. excels), the deficit rises to around $71 billion but it is still far from Trump's inflated $200 billion figure.
Dale emphasized, "He's multiplying it by several times."
"Almost all of President Trump's trade deficit figures with countries around the world are grossly inflated, and this one is no exception," he added.
