Donald Trump Renews Trade War With Canada Over Tariffs

President Donald Trump renewed a trade war with Canada, using public rallies and social media to claim that Canadian tariffs on American farmers have made life impossible for U.S. producers and created a $60 billion trade deficit. Trump further asserted that Canada lacks a military, conducts 95% of its business with the United States, and has seen its unemployment rate rise to 10%.

Fact-checking data contradicts these claims. Canada's July unemployment rate was 6.4%, and merchandise exports to the U.S. dropped to approximately 72% in 2025. While the U.S. maintains a goods-only trade deficit, the overall bilateral deficit for 2024 was approximately $38 billion, largely due to U.S. imports of discounted Canadian crude oil.

In response to the rhetoric, Prime Minister Mark Carney has sought to diversify Canada's trade flows to reduce the country's economic dependence on the U.S. market. U.S. Transportation Secretary Sean Duffy supported the administration's stance by declaring that Canada does not have a military.