Trump Tells Canada to Pay Its Own Way in Fiery White House Meeting

U.S. President Donald Trump made headlines again on Tuesday, May 6, 2025, after declaring that the United States should stop “subsidizing” Canada during high-stakes trade talks at the White House.

Sitting across from newly reelected Canadian Prime Minister Mark Carney, Trump didn’t hold back his criticism of current trade dynamics between the two allies.

“We have a tremendous deficit with Canada,” Trump said. “It’s hard to justify subsidizing Canada to the tune of maybe $200 billion a year.”

That figure, while disputed by experts, reflects not just trade imbalances but U.S. defense spending, which Trump argues indirectly benefits Canada.

According to the U.S. Trade Representative’s office, the actual trade deficit with Canada stands at $63.3 billion.

Trump’s administration has restarted a series of tariffs that were largely dormant during his previous term, targeting goods not protected by the United States-Mexico-Canada Agreement (USMCA). Canadian exports such as cars, steel, and aluminum have been especially affected.

“We really don’t want Canadian steel, and we don’t want Canadian aluminum,” Trump added.

“At a certain point, it won’t make economic sense for Canada to build those cars.”

Carney, while maintaining a composed demeanor, did not directly respond to the subsidy comments during the press event.

However, sources close to the Canadian delegation say there is growing concern over the unpredictability of U.S. tariff policy under Trump’s second term.

The White House has estimated that around 38% of Canadian imports are shielded by USMCA provisions. Still, energy products and other goods not covered by the deal face new levies — with some tariffs rising to 25%.

The USMCA is scheduled for review next year, which could lead to even more sweeping changes in trade policy.

For now, Canada finds itself trying to navigate a tough balancing act between economic dependency and political independence.