Trump says 'very bad' Canada is being 'taught a little lesson' as trade action escalates
U.S. President Donald Trump has escalated trade tensions with Canada, imposing import bans on various goods and criticizing Canadian trade practices. Trump claims these actions are necessary to correct past trade imbalances and protect U.S. manufacturing interests.
Why it matters
The aggressive trade policy significantly impacts the economic relationship between the U.S. and its largest trading partner, Canada.
Speaking at the White House, Trump said the U.S. was "stupidly run" before he got the job because past leaders allowed automakers to move assembly plants offshore, including to Canada.
Canada has had a large-scale domestic auto manufacturing industry since 1904 , developing at roughly the same time as the one in the U.S.
Still, Trump said past presidents "allowed other countries to make our cars and sell them to us," and he is ending that now with his high-tariff regime. The Trump administration has repeatedly made it clear that it wants to hollow out Canada's auto industry .
"Canada has taken advantage of us for so many years. The worst of any country," Trump said.
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