As his 25% tariffs on imported Canadian products took effect on Tuesday, President Donald Trump repeated one of his many false claims about Canada – wrongly saying, again, that Canada prohibits US banks from operating there.

President Donald Trump posted on Truth Social that U.S. banks can't do business in Canada. However, this statement is blatantly false.

U.S. tariffs that took effect on Tuesday are threatening to derail Canada's fledgling economic recovery and will fuel a rise in consumer prices and unemployment, potentially triggering a recession.

Economists expect the Bank of Canada will cut its benchmark interest rate next week, after U.S. President Donald Trump hit Canada with a 25 per cent tariff on non-energy imports on Tuesday and a 10 per cent levy on energy imports.

Royal Bank of Canada remains strong with rising net interest income. Read why RY stock could surge 24% or more if growth aligns with historical levels.

Liberals were headed for a wipeout. But after Trump ramped up his attacks, they reversed a 20-point polling deficit and are neck-and-neck with the Conservatives.

As steep tariffs on Canadian goods took effect this week, banks on both sides of the border expressed concern about the economic fallout and the uncertainty their customers face.

WASHINGTON (Reuters) - U.S. President Donald Trump claimed on Tuesday that U.S. banks are not allowed to do business in Canada, while their banks operate in the U.S. "Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?," Trump said in a post on Truth Social.

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