Trump's Misleading Claims on Canada-US Trade and Economy Exposed
US President Donald Trump has made several misleading claims about Canada's economy and trade relationship with the US. In a recent White House news release, it was stated that 'Canada sends roughly three-quarters of all its goods exports to America', citing 2024 data. However, Statistics Canada reported that only 71.7% of merchandise exports went to the US in 2025, down from 75.9% in 2024.
Additionally, Trump claimed on his Truth Social account that Canada's unemployment rate is currently at 10%, but employment data from Statistics Canada shows a decline in the unemployment rate to 6.4% in July, with an increase of 75,000 new jobs.
Trump also stated that Canada historically charged 400% tariffs on American farmers, causing a trade deficit of US$60 billion per year over the past decade. However, under the US-Mexico-Canada Agreement (CUSMA), tariffs were virtually eliminated for most products crossing the border, with some exceptions for certain agricultural industries.
The International Dairy Foods Association confirmed that US dairy exports have not exceeded CUSMA's tariff rate quotas due to Canada's protectionist measures. The trade deficit in goods between the two countries was around US$68 billion in 2024 and US$55 billion in 2025, but this figure shrinks to $39 billion in 2024 and $27 billion in 2025 when services are factored into the equation.