As trade tensions between Canada and the United States escalated with new tariff decisions, U.S. President Donald Trump claimed that Canadian companies were rapidly moving to the United States.
In a post on his Truth Social account, Trump said, “Canadian companies are flocking to the United States. We want to make our own automobiles and similar products. That is what will happen.”
Trump argued that Canada had “exploited” the United States for years and said the economic relationship between the two countries would change fundamentally. He also called on manufacturers to move their operations to the United States to benefit from zero tariffs.
U.S. tariff measures
The United States began imposing a 50% tariff on goods worth $20 billion imported from Canada on August 22. Trump also ordered that a 50% tariff be imposed on all Canada-origin automobiles, trucks and steel starting January 1, 2027.
Trump argues that the measures are necessary to close a trade deficit exceeding $60 billion. However, the number of Canadian companies that have begun relocation plans and the amount of capital to be transferred across the border were not disclosed.
Carney announces retaliatory tariffs
Canadian Prime Minister Mark Carney called the new U.S. duties a “miscalculation.” Carney said the move was intended to “hurt and divide” Canada.
Carney said Canada was “at war” because of the trade dispute and announced that Ottawa would impose reciprocal tariffs on goods worth $20 billion imported from the United States starting September 8.
