Breaking News: Failed hotels, Trudeau, minerals… some reasons for Trump to be angry with Canada….See More

Trump’s personal and economic grievances against Canada fuel tensions as Ottawa braces for the impact of new tariffs and considers its next move in an escalating trade battle

The relationship between US President Donald Trump and Canada has been complicated, with economic tensions, personal conflicts and political strategies shaping their interactions. Canada has always been a close ally of the US, but Trump’s time in office—both his first term and his current second term—has brought an unusual level of hostility toward the northern neighbour.

Several reasons seem to fuel his negative approach toward Canada, including his unsuccessful business ventures there, trade disagreements and clashes with Prime Minister Justin Trudeau. All these factors have made US-Canada relations more strained than ever before.

Business failures that fuelled Trump’s resentment

According to a report by Alan Rappeport and Ian Austen in The New York Times, long before Trump entered the political arena, he attempted to expand his business empire into Canada, but his efforts ended in failure. One of the most notable disappointments was the Trump Tower Toronto, a luxury hotel and condominium project that ended in financial ruin.

Trump did not personally own the building, instead, it was developed by a Toronto-based investor who licenced the Trump brand. However, the project was plagued with financial mismanagement leading to bankruptcy and receivership in 2016. The failure was a significant embarrassment for Trump whose brand was built on the image of business success.

Another venture, the Trump International Hotel & Tower in Vancouver, met a similar fate. The hotel, owned by Malaysian investors but branded under Trump’s name, struggled from the outset. It opened in 2017, faced immense public backlash and ultimately closed down in 2020.

The failure of these projects in a country where Trump was already unpopular may have played a role in his animosity toward Canada. His critics argue that his economic misfortunes north of the border contributed to the antagonistic trade policies he later imposed as president.

Trudeau and Trump: A clash of personalities and policies

The personal and political tension between Trump and Trudeau added more strain to US-Canada relations. Trudeau’s leadership focusses on diplomacy and global cooperation, while Trump’s style is more aggressive and confrontational. Their differences were clear on several occasions, especially during international summits and trade talks.

One of the most well-known incidents happened at the 2018 G7 Summit in Charlevoix, Quebec. After initially agreeing to a joint statement, Trump suddenly withdrew his support and attacked Trudeau on Twitter, calling him “very dishonest and weak”. This happened because Trudeau had restated Canada’s opposition to US tariffs on steel and aluminium, which Trump saw as an act of defiance. The public clash made relations worse and deepened Trump’s personal grudge against Trudeau.

Another moment that fuelled speculation about Trump’s dislike for Trudeau came at the 2019 G7 Summit in France. A photo showed Trudeau leaning toward Melania Trump in a way that some on social media described as flirtatious. While this was mostly online gossip, some believed that Trump, who is known for being sensitive to personal slights, might have been annoyed by the attention the picture received.

Trade wars and tariffs

Trump’s economic policies toward Canada are based on his belief that the US is being treated unfairly in trade agreements. From the start of his presidential campaign ahead of his first term, he criticised the North American Free Trade Agreement (Nafta), calling it the “worst trade deal ever.” Although Nafta was signed in 1994, Trump argued that it mostly helped Canada and Mexico while hurting American workers.

His administration renegotiated Nafta, leading to the United States-Mexico-Canada Agreement (USMCA) in 2020. Canada made some concessions, especially in dairy exports, but the deal did not go as far as Trump wanted. Even after its signing, he remained unhappy, claiming that Canada was still benefiting more from the trade relationship. He continued pushing for further changes, showing his ongoing frustration.

Besides trade agreements, Trump often used tariffs as a tool against Canada. In 2018, he placed a 25 per cent tariff on Canadian steel and a 10 per cent tariff on aluminium, citing national security concerns—an argument that many experts rejected. Canada responded with counter-tariffs on American goods, increasing tensions. In 2024, after winning his second term, Trump again threatened new tariffs on Canadian products like lumber, raising fears of another trade war.

On Tuesday, 4 March 2025, Trump’s 25 per cent tariffs on Canadian and Mexican imports officially took effect, sparking concerns about a North American trade war. He justified the move by pointing to fentanyl trafficking, illegal immigration and trade imbalances. However, there is widescale worry that these tariffs could lead to inflation and disrupt supply chains.

Strategic interest in Canadian minerals

The New York Times report said Trump’s grudge against Canada may not be just personal or economic—it also has a strategic side. Canada has large reserves of critical minerals like lithium, cobalt and rare earth elements, which are essential for modern technology and defence industries. In recent years, the US has been trying to reduce its reliance on China for these resources and Canada has become a key alternative supplier.

Trudeau suggested that Trump’s focus on Canada might be connected to its mineral wealth. In a 2024, he remarked that the Trump administration was well aware of Canada’s reserves of critical minerals and implied that this could be a reason for its repeated discussions about absorbing Canada and making it the 51st state. While the idea of the US annexing Canada remained unrealistic despite Trump’s frequent mentions, his interest in gaining access to Canadian resources was undeniable.

The US has already pressured Canada to align its mineral supply chains with American interests. Trump’s transactional style of diplomacy suggests that he sees Canada’s resource wealth as something the US should have more control over. This adds another layer to his broader strategy of using economic pressure on Canada.

Nationalist backlash in Canada

Trump’s hostility toward Canada has had unexpected effects—it has strengthened Canadian nationalism. His trade policies, personal attacks and even talk of annexation have sparked a rise in national pride. More Canadian businesses are now promoting “Made in Canada” products and social media groups supporting local brands have become more popular.

Even political leaders in Canada who usually oppose Trudeau have pushed back against Trump’s remarks. Former Conservative leader Erin O’Toole, despite disagreeing with Trudeau’s policies, warned that Canada should not let American political influence shape its economic future. This strong response shows how Trump’s actions have brought Canadians together in opposition to his approach.

A relationship defined by resentment

Trump’s resentment toward Canada is not just about trade or economic policies. It is also personal, driven by his failed business ventures, public conflicts with Trudeau and the belief that Canada has not shown enough respect for American interests. His use of tariffs, insults and threats is part of a larger strategy to pressure Canada, but it has also made Canadians more determined to resist.

With Trump’s 25 per cent tariff on most Canadian products, Ottawa braces for a tough economic challenge, but not willing to back down. The struggle between the two countries is far from over and their future relationship will continue to be shaped by the ongoing clash between economic needs and political rivalry.