Donald Trump was very worried about United States’ trade deficit with Canada. This occurred only minutes before his scheduled meeting with Canadian Prime Minister Mark Carney at the White House. He said that he could not be more enthusiastic about the meeting to come. At the same time, he expressed his own puzzlement at the investment relations between the two countries.
Since taking office, Trump has slapped heavy tariffs on products imported from Canada. He has for years decried U.S. trade deficits, including with such critical partners as Canada. He mentioned how much the U.S. spends on defense in Canada. By his estimation, this number climbs to almost $200 billion per year.
“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,” Trump stated. His comments exemplify a larger theme that he has continued to express throughout his term about U.S. trade partners.
Yet as the meeting came near, Trump lowered expectations for fruitful talks. And before the meeting, he had already signaled that he would ask only “one question of substance” at the hearing.
“He’s coming to see me. I’m not sure what he wants to see me about, but I guess he wants to make a deal. Everybody does,” Trump noted.
Trade between Canada and the United States is significant, with total goods trade amounting to approximately $762 billion, according to the U.S. Trade Representative. Canada’s exports to the U.S. dropped 6.6% for March. According to Statistics Canada, exports to the rest of the world jumped nearly 25%. In 2022, the U.S. trade deficit with Canada climbed to $63.3 billion. Last year, the U.S. imported over $400 billion in Canadian goods.
Canadian politics have been shaken by Trump’s tariffs and expansionist rhetoric. Now, many are viewing the recent Canadian election as a stunning repudiation of his policies. Former Bank of Canada governor Mark Carney’s Liberal Party won a plurality of seats to form the next government even as it lagged in earlier polling.
The stakes couldn’t be higher for either leader as they prepare to meet. Some analysts believe that the way Trump has approached these negotiations will set a precedent for future deals and exacerbate tensions between the two countries.