President Donald Trump, in his first Oval Office meeting with new Canadian Prime Minister Mark Carney, said there was nothing Carney could say to him Tuesday that would convince the president to reduce tariffs on Canadian goods.
“No,” Trump said. “Just the way it is.”
Trump complained that Canada has treated the United States unfairly. In a Truth Social post before he met with Carney, the president repeated some of his previous grievances about the country.
“Why is America subsidizing Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things?” Trump posted, citing a baseless claim. “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.”
Trump’s “$200 billion” claim is not even close to true. Official US statistics show the 2024 deficit with Canada in goods and services trade was $35.7 billion.
Meanwhile, Canada was the top buyer of American goods last year.
Carney acknowledged that saying Canada is “the largest client of the United States,” so it would benefit the United States to restore free trade with its northern neighbor. But he agreed with Trump that a trade deal likely wouldn’t be announced Tuesday as a result of their discussions.
Even though the United States imports more from Canada than it exports, the two countries have found mutual benefits from trading with one another – in particular, sourcing raw materials and produce that are not native to both countries.
By contrast, Trump’s tariffs on Canada are poised to hurt both countries. Currently, most Canadian goods exported to the US are subject to a 25% tariff if they aren’t compliant with the United States-Mexico-Canada Agreement, a trade deal Trump inked during his first term. There are also 25% tariffs in place on steel, aluminum, cars and auto parts.
Canada, meanwhile, is taxing roughly $43 billion worth of US goods, including whiskey, sporting gear and household appliances.
Despite Trump saying it would be “much better for Canada” to become an American state, Carney told Trump, “Canada is not for sale.” The prime minister said that was not up for negotiation — but urged the president to work with him on negotiating lower tariffs.
“Respectfully, Canadians’ view on this is not going to change on the 51st state,” Carney said. “Is there one thing (I can say)? No, this is a bigger discussion. There are much bigger forces involved, and this will take some time and some discussions, and that’s why we’re here — to have those discussions.”
Trump acknowledged that a deal to bring Canada under the United States’ fold would not happen Tuesday.
“This is not necessarily a one-day deal,” Trump said. “This is over a period of time they have to make that decision.”
But Trump had said earlier in the Oval Office meeting that he was open to a negotiation with Canada that could result in a trade deal.
“Something could happen,” Trump said. “Something could happen. Yeah.”
This story has been updated with additional developments and context.
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