Former Canadian Prime Minister Stephen Harper is challenging Donald Trump’s statements that the United States is subsidizing Canada, a claim the president-elect has cited when threatening to slap 25 percent tariffs on imports from Canada.
The “modest” trade deficit between the two countries can primarily be attributed to America’s purchase of oil and gas from Western Canada, Harper said during a recent interview with a U.S. podcast. He noted that Canadian gas and oil is provided to the United States at a “discount” compared to world markets.