Trump signals he will press Canadian leader on trade deficit

President Trump teed up a meeting with Canadian Prime Minister Mark Carney on Tuesday by saying he plans to press his northern neighbor on why the U.S. has a big trade deficit with Canada and supplies benefits such as military protection.

The musings, outlined in a Truth Social post before Mr. Carney’s arrival, suggested Mr. Trump would lean into his talk of making Canada a “51st state” despite his outwardly friendly approach to the prime minister, who was just elected.

“I look forward to meeting the new Prime Minister of Canada, Mark Carney. I very much want to work with him, but cannot understand one simple TRUTH — Why is America subsidizing Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things?” Mr. Trump wrote.

The U.S. and Canadian leaders are having their first in-person meeting at the White House on Tuesday.

Trade tensions will simmer below the surface.

Canada was exempted from Mr. Trump’s “Liberation Day” tariffs but faces 25% levies on its steel and aluminum and a 25% tariff on cars that don’t meet requirements under the U.S.-Mexico-Canada Agreement.

Canadian goods remain subject to a 25% tariff that Mr. Trump imposed because of fentanyl trafficking across the northern border, though many goods are exempted under the USMCA.

Ottawa retaliated against Mr. Trump’s tariffs by putting a 25% tariff on $30 billion worth of U.S. goods such as orange juice, peanut butter, wine, spirits, beer, coffee and appliances.

The president says the U.S. doesn’t need Canadian cars, lumber or other goods.

He has characterized the trade deficit, in which the U.S. buys more from Canadian producers than Canadians buy from U.S. producers, as subsidization of the neighboring nation.

Mr. Trump even floated the idea of annexing Canada, causing figures in Ottawa to wonder if he’s joking.

Canada has been taken aback by Mr. Trump’s aggressive stance and leaned into a “Buy Canadian” movement. 

Mr. Carney rode a wave of pushback to Trump toward his party’s recent electoral victory, though Mr. Trump showed no signs of backing off his tough talk.

“We don’t need ANYTHING they have, other than their friendship, which hopefully we will always maintain,” Mr. Trump posted. “They, on the other hand, need EVERYTHING from us! The Prime Minister will be arriving shortly and that will be, most likely, my only question of consequence.”