Like the War of 1812, the victor will depend on who narrates the tale. President Donald Trump welcomed newly elected Canadian Prime Minister Mark Carney to the White House on May 6. Ahead of the powwow in the Oval Office, Trump took to Truth Social and asked a simple question: Why is America subsidizing Canada with $200 billion per year? This could be the definitive debate for the administration as the North American neighbors engage in trade negotiations surrounding the current tariff regime and next year’s review of the United States-Mexico-Canada Agreement (USMCA).
Carney Flatters Trump
Foreign leaders have ostensibly learned that you must shower Trump with praise and respect if you wish to be on his good side. It is a delicate balancing act, indeed. Despite public posturing by some heads of state, they inevitably crumble in the limelight and fail to maintain the guns-a-blazing attitude from back home. During the 2025 federal election, Carney and the Liberals declared that the “old relationship” with the United States was over and that they must pursue other economic opportunities abroad.
Carney and Co. riled up voters with Trump Derangement Syndrome, made them lift their elbows, and shout at the moon in the local Tim Hortons parking lot, “Orange Man Bad!” The prime minister’s first face-to-face meeting with Trump was vastly different. Carney complimented Trump, calling him "a transformational president,” and said, "The history of Canada and the US is we’re stronger when we work together. And there’s many opportunities to work together. And I look forward to addressing some of those issues that we have, but also, finding those areas of mutual cooperation."
Put simply, Carney tucked away the tough guy shtick and flopped worse than Snow White at the box office. And Trump was apparently pleased. "That’s great. Very nice. Thank you very much. Very nice statement."
Of course, the part that will generate the most coverage in the Liberal-friendly Canadian media landscape is when Carney, in passing, declared that the Great White North will never be for sale.
"As you know from real estate, there are some places that are never for sale," the prime minister said. "Having met with the owners of Canada over the course of the campaign in the last several months, it’s not for sale. Won’t be for sale, ever."
This did not faze the 47th president. For months, Trump, in earnest, has discussed the annexation of Canada. Carney and the rest of the country have rejected this offer. While obtaining it as the 51st state would be a substantial victory, so would adjusting the terms and conditions of bilateral trade to favor the United States. Trump dismissed the question when asked if he would walk away from the USMCA. "No, it’s fine. It’s there. It’s good. We use it for certain things," he said. "The USMCA’s a good deal for everybody."
One comment may have fractured trade deliberations, giving the White House an advantage.
Reporter: “Is there anything he can say to you in the course of your meetings with them today that would get you to lift tariffs on Canada?”
Trump: “No.”
He continued:
“We don’t really want cars from Canada. And we put tariffs on cars from Canada. And at a certain point, it won’t make economic sense for Canada to build those cars. And we don’t want steel from Canada because we’re making our own steel and we’re having massive steel plants being built right now as we speak. We really don’t want Canadian steel and we don’t want Canadian aluminum and various other things, because we want to be able to do it ourselves.”
Canada’s economy has been on the brink of a recession for years. If Trump abandoned what the Great White North produces, it would be big trouble in little Canada.
A few of The Art of the Deal tenets are to think big, maximize options, and use leverage. Is he showcasing the fundamental principles of his book? Another maxim he may be espousing on the world stage is relying on instinct over complex data. This might be exhibited in his repeated claim of subsidizing Canada, which is untrue.
Paying for Tim Hortons
Whether at the May 6 meeting, in front of the press, or on social media, Trump has repeatedly asserted that the United States subsidizes Canada’s economy with $200 billion per year. This would imply that US taxpayers are giving money to Canadians as if they were an impoverished African nation. But this is untrue.
The president might be referring to the US trade deficit with Canada. Last year, according to the US Trade Representative's Office, the US goods trade deficit with Canada was $63.3 billion, down 1.4% from the previous year. However, a trade deficit does not mean Americans transfer their tax revenues to someone in Winnipeg, Manitoba, or Iqaluit, Nunavut. A trade imbalance is when a nation imports more goods and services than it exports.
In this case, US companies are purchasing more goods and services from suppliers in the north, particularly energy, steel, and aluminum, than shipping across the border. Washington is not cutting a check to Ottawa.
Like many other Western nations, the Canadian government can now be criticized for depending too much on the United States for its security. Conservatives in the Parliament, dating back to former Prime Minister Stephen Harper more than a decade ago, have explained this in the House of Commons. It was not until Trump that Canada and others acted.
Still, Canada is not a welfare recipient in America’s astronomical entitlement system.
Elbows Up or Down?
In Canada, the mainstream media, from CBC to CTV News, will declare that Carney was calm, cool, and collected. Therefore, he represented Canada proudly and was the true victor in the powwow. In the United States, pro-Trump media will pronounce the incumbent as the alpha male, while the anti-Trump press will aver that Carney was a hero because he hardly uttered a word. The champion is in the eye of the beholder. Elbows up or elbows down?
At least there was one thing that people in both nations could share with President Trump: “I won’t say this about Mark, but I didn’t like his predecessor." Neither did Canada, Mr. President.
