White House says Trump is ending Canada's 'Free Ride' amid escalating tariff dispute

The White House has sharply criticized Canada's trade practices, accusing the nation of "ripping off" the United States for decades and asserting that President Donald Trump is determined to end this "free ride."

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Canada has been ripping off the United States for decades --and President Donald J. Trump is done letting them get away with it.

In a strong statement, the White House declared that the U.S. had offered Canada "the most preferential market access of any country on Earth" with significant concessions on various goods. However, it claimed Canada responded with "unreasonable demands, walk-backs, and flat-out rejection."

U.S. officials pointed to specific Canadian measures they deemed "discriminatory," including a 25 percent tariff and company-specific quotas on U.S. motor vehicles, which they said led to a 22 percent drop in U.S. vehicle exports to Canada over the past year. They also cited a ban on American wine, beer, and spirits, resulting in an 81 percent decline in U.S. alcohol exports. Furthermore, the White House alleged that Canada "locks out U.S. dairy" through restrictive tariff-rate quotas and high over-quota tariffs.

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Canada alone had imposed discriminatory 25 per cent tariffs and company-specific quotas on US motor vehicles, measures it said were applied to no other country.

The White House further asserted that Canada has maintained an average annual goods trade deficit of approximately $50 billion with the United States over the last decade while refusing reciprocal market access. They also accused Canada of targeting American aerospace manufacturer Gulfstream. These protectionist barriers, the White House argued, have cost American producers billions in lost sales and forced layoffs.

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Canada had banned American wine, beer and spirits in nearly every province and territory, resulting in an 81 per cent decline in US alcohol exports to Canada in a single year.

Emphasizing the perceived imbalance, the White House claimed that roughly three-quarters of Canada's goods exports go to the United States, suggesting the Canadian economy's heavy dependence on the American market. They warned that "Without the United States, Canada could not survive." The statement also referenced a survey indicating that a significant percentage of Canadian manufacturers are considering or have already moved production to the United States.

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Canada "locks out U.S. dairy" through tariff-rate quotas that are more restrictive than those granted to Europe, along with over-quota tariffs of nearly 300 per cent.