The White House issued a statement on Tuesday that lists “facts” about how Canada has abused its trading relationship with the United State “for decades.”
It was another move in the deepening trade war between the two countries. Talks over tariffs collapsed on Friday night when Prime Minister Mark Carney pulled out, saying the U.S. “asked too much and offered too little.”
Some of the claims the White House makes about Canada are true. Others are opinions that U.S. President Donald Trump has long held or claims that are open to debate. Here’s a look at what the White House said.
Are we alone with China in retaliating against U.S. tariffs?
The first point in the White House statement says: “Canada is joined only by the People’s Republic of China in choosing retaliation over negotiation.”
Although Canada has been negotiating with the U.S. for the past month, this statement appears to be true. Many trading partners have threatened to retaliate against Trump’s tariffs but have yet to do so.
- With the trade war back in full swing, are you trying to buy Canadian again? We want to hear from you — email us at ask@cbc.ca.
Mexico is in negotiations to reduce similar tariffs Canada faces on steel, aluminum and cars, but it has not threatened specific countermeasures.
Brazil is threatening action in response to U.S. duties. Both the U.K. and the European Union considered counter-tariffs after “Liberation Day” in 2025, but they decided to hold off.
Canada tariffs vehicles imported from the U.S.
The statement accuses Canada of imposing “discriminatory” tariffs of 25 per cent on imports of vehicles from the U.S. It characterizes the move as unfair, as it says the measures were “applied to no other country.”
This is strictly true — but the reason Canada imposed the tariff on April 9, 2025, is because the U.S. did the same days earlier. The tariff applies to non-CUSMA-compliant vehicles imported into Canada from the U.S., which is the equivalent of what the U.S. did to Canada.
The negotiations that fell apart on Friday were, in part, about eliminating or at least reducing that tariff.
Canada has banned most U.S. alcohol from shelves
One of the most high-profile actions Canadian provinces took after new tariffs were imposed by Trump in 2025 was to pull U.S. alcohol from the shelves of government liquor stores.
The White House statement says: “Canada banned American wine, beer, and spirits in nearly every province and territory — while other countries have faced no such restrictions. As a result, U.S. alcohol exports to Canada collapsed 81% in a single year.”
It’s true that all provinces except Saskatchewan and Alberta have taken this step. Premiers have said in recent days that they would lift the bans only if Trump’s tariffs are substantially lowered or eliminated. Since trade talks collapsed, they say U.S. alcohol will not return to shelves any time soon.
In recent months, politicians in California have pleaded with Canada to lift the ban, saying it has hurt wineries in their state. In Kentucky, Gov. Andy Beshear acknowledged last week that the bourbon industry is hurting, as Canada is his state’s No. 1 trading partner.
Does Canada impose a 300% tariff on U.S. dairy?
Trump has repeatedly attacked Canada’s dairy industry, and the White House went there again.
“Canada locks out U.S. dairy with tariff-rate quotas far more restrictive than those given to Europe, plus over-quota tariffs of nearly 300% — rates so extreme they function as a near-total ban and rank among the highest agricultural tariffs in the developed world,” its statement claimed.
Canada has not locked out U.S. dairy. The rules are complex, but U.S. dairy producers can export to Canada tariff-free, up to a limit — which they have never reached. Beyond that limit, tariffs would be imposed that can reach 250 per cent. But that has never happened.
What particularly irritates the U.S. is that its retailers are not allowed to sell dairy directly in Canada. That’s why you can’t buy American milk in the grocery store.
But Canada’s agreement with the EU does allow some retail brands from there to sell their products here, particularly cheese. The U.S. says that’s unfair.
It should be noted that the current tariff rules on U.S. dairy entering Canada were negotiated and agreed to by Trump in his first term.
The U.S. trade deficit with Canada
Trump spends a lot of time focused on trade deficits, and he interprets them as a form of weakness.
The White House says, “Canada has extracted a persistent average annual goods trade deficit of roughly $50 billion from the U.S. over the last decade — while refusing reciprocal access.”
The overall number is correct (it was $48.5 billion in 2025, according to the U.S. Trade Representative). But as premiers and others have repeatedly noted, the only reason for that is because Canada exported 3.9 million barrels of oil per day to the U.S. last year.
States near Canada’s border need the oil, and it’s sold at below-market prices, a significant economic advantage for the U.S.
If that oil were removed from the calculation, the U.S. would have a goods surplus with Canada. In other words, excluding energy, it exports more stuff to Canada than Canada exports to the U.S.
Finance Minister François-Philippe Champagne says Canada will match the latest round of U.S. tariffs in a ‘proportionate, targeted and strategic’ way. Champagne says the tariffs, which will impact more than $27 billion in U.S. goods, are ‘all about fairness.’
Some White House claims can’t be fact-checked
The statement includes a series of “facts” that are actually opinions or claims that are open to debate.
For example, it says: “Without the United States, Canada could not survive. Canada sends roughly three-quarters of all its goods exports to America.” The figure here is correct, and although no Canadian officials deny the importance of the U.S. market, Canada’s survivability without the U.S. is a hypothetical that no one is seriously contemplating.
“The statement also says: “Canada’s failed trade policies are driving its own manufacturers south. A recent survey found 42% of Canadian manufacturers have already moved or are planning to move production to the U.S.”
The survey, by KPMG, says companies are moving or planning to move “due to economic uncertainty and trade and tariff threats,” not because of “Canada’s failed trade policies.”
The White House statement ends with a claim that the U.S. “has the clear leverage” since its economy is far larger. Although no one disputes the size advantage, the debate over who has the upper hand in this trade war is not settled.
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