White House accuses Ottawa of imposing discriminatory tariffs and trade barriers on American goods as Trump administration signals tougher stance in escalating US-Canada trade tensions.
The Trump administration has intensified its trade offensive against Canada, accusing Ottawa of unfairly restricting American goods and warning that the United States is no longer willing to accept what the White House described as a Canadian “free ride” on the US market.
In a statement issued on Tuesday, the White House said the United States had recently offered Canada highly preferential market access, including significant cuts on tariffs covering steel, aluminium, automobiles, lumber and other products.
Instead of accepting the offer, however, Canada chose what the administration described as “unreasonable demands, walk-backs, and flat-out rejection”.
White House accuses Canada of unfair trade practices
The White House highlighted several measures it says have hurt American businesses and workers.
It accused Canada of imposing a 25 per cent tariff and company-specific quotas on US motor vehicles, calling the measures discriminatory because they were not applied to other countries. The administration said US vehicle exports to Canada had fallen 22 per cent over the past year.
Washington also criticised Canada’s restrictions on American alcoholic beverages. According to the White House, US wine, beer and spirits were removed from store shelves in most Canadian provinces and territories, contributing to an 81% decline in US alcohol exports to Canada over one year.
More from BusinessDairy trade has emerged as another major flashpoint. The administration said Canada’s tariff-rate quotas restrict US dairy imports, while tariffs on products entering above quota levels can approach 300 per cent.
The White House argued that the high tariffs effectively operate as a near-total barrier to American dairy products.
Trump administration points to US-Canada trade deficit
The White House also cited the longstanding US goods trade deficit with Canada as evidence of an imbalanced relationship.
It said the United States has run an average annual goods trade deficit of roughly $50 billion with Canada over the past decade.
The administration also accused Canada of targeting US aerospace company Gulfstream, claiming Ottawa had effectively blocked sales of several of the company’s business jet models before Trump intervened.
The White House said Canadian protectionist measures had cost American producers billions of dollars in lost sales and contributed to layoffs and lost market share.
Canada announces fresh tariffs on US products
The latest confrontation follows Canada’s decision to impose an additional C$27.6 billion in tariffs on American goods.
The measures, announced by the Canadian government, include a 50 per cent tariff on US steel and aluminum, as well as 25 per cent tariffs on selected American fish and tools. The new tariffs are scheduled to take effect on September 8.
The White House said Canada’s latest measures demonstrate that Ottawa is continuing to choose retaliation rather than negotiation.
The administration also stressed Canada’s dependence on the US market. Roughly three-quarters of Canada’s goods exports are sent to the United States, according to the White House.
Trump says Washington has the leverage
The administration argued that the economic imbalance between the two countries gives Washington considerable leverage in the ongoing trade dispute.
The US economy is approximately 13 times larger than Canada’s, while the US population is more than eight times larger, the White House said.
It also cited a recent survey showing that 42 per cent of Canadian manufacturers have already moved production to the United States or are considering doing so.
Trump has adopted an increasingly confrontational tone toward Ottawa as negotiations over tariffs and market access continue.
“Canada is easily the most difficult and unreasonable,” Trump said, according to the White House statement, adding that Canada feels “entitled” despite not being a US state.
The latest escalation highlights the growing strain in the traditionally close US-Canada economic relationship, with tariffs, market access and industrial policy increasingly at the centre of the dispute.
