Is the U.S. subsidising Canada as Trump claims?
No. This is a false claim by President Trump.
Trump is referring to the United States trade deficit with Canada, which is not a subsidy. The export of needed oil and energy from Canada account for the majority of the trade deficit. A 2025 report by the National Bank of Canada illustrates that, except for Canadian oil and gas exports, America sells more in Canada than Canada sells to the U.S.
Trump showed just how important those energy exports are when he threatened a 25% tariff on all goods but a 10% tariff on just those energy imports. Canada has leverage, and we’ve shown we’re willing to use it.
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