By Daniel Dale, CNN
US President Donald Trump signs an executive order after delivering remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on 2 April 2025.
US President Donald Trump signs an executive order after announcing tariffs on dozens of the country's biggest trading partners. Photo: AFP / Saul Loeb
US President Donald Trump made a series of false claims about tariffs and trade - most of which he has made before - in the speech in which he announced a sweeping set of global tariffs.
Here is a fact check of some of Trump's remarks.
Canada's dairy tariffs
Trump correctly noted that Canada has tariffs exceeding 250 percent on some US dairy products. However, he falsely claimed that merely "the first little carton of milk" exported to Canada faces a "very low price," but "then it gets up to 275, 300 percent."
In reality, Canada has guaranteed that tens of thousands of metric tons of imported US milk per year, not merely a single carton, will face zero tariffs at all; Canada conceded a certain guaranteed level of tariff-free US access to its dairy market as part of the United States-Mexico-Canada Agreement (USMCA) that Trump's own first administration negotiated.
Trump also didn't mention something the US dairy industry acknowledges: The US is not hitting its zero-tariff maximum level of exports to Canada in any category of dairy product, so the Canadian tariffs aren't being applied; with regard to milk in particular, the US isn't even at half of the tariff-free quota. (There is a vigorous US-Canada debate about why the US is so far from the maximum, with each country blaming the other. Regardless of who's right, the tariffs aren't hitting US milk.)
Trump has persistently omitted key facts about Canada's dairy tariffs.
A Dairy Farmers of Canada Quality Milk label is shown in Brampton, Canada, on February 3, 2025. Sweeping tariffs imposed by US President Donald Trump on many Canadian products, including dairy, force many Canadians to check labels for Canadian-made or produced products as a response to potential higher grocery costs.
Photo: NurPhoto via AFP) / Mike Campbell
US trade deficit with Canada
Trump, claiming "we subsidise a lot of countries," falsely said it's close to $200 billion a year" with Canada. Trump has repeatedly used this US$200 billion figure to describe the US trade deficit with Canada in particular, which is actually far lower than US$200 billion; official US statistics show the 2024 deficit with Canada in goods and services trade was $35.7 billion and $70.6 billion in goods trade alone.
Trump didn't mention the trade deficit in particular this time, but even if he was intending to use the word "subsidize" more broadly, there is no basis for the claim.
Who pays tariffs
Trump repeated his frequent false claim that, because of the tariffs he imposed on China during his first term, the US "took in hundreds of billions of dollars" that "they paid." In fact, US importers, not foreign exporters like China, make the tariff payments, and study after study has found that Americans bore the overwhelming majority of the cost of Trump's first-term tariffs on China; it's easy to find specific examples of companies that passed along the cost of the tariffs to US consumers.
Previous presidents' tariffs on China
Trump also repeated his frequent false claim that, before his first presidency, China "never paid 10 cents to any other president" from tariffs. Aside from the fact that US importers make the tariff payments, the US was actually generating billions per year in revenue from tariffs on Chinese imports before Trump took office; in fact, the US has had tariffs on Chinese imports since 1789. Trump's predecessor, President Barack Obama, imposed additional tariffs on Chinese goods.
WASHINGTON, DC - APRIL 24: U.S. President Joe Biden delivers remarks after signing legislation giving $95 billion in aid to Ukraine, Israel and Taiwan in the State Dining Room at the White House on April 24, 2024 in Washington, DC. The legislation was months in the making and put Speaker of the House Mike Johnson (R-LA) in a vulnerable position with hardline conservatives in his own party who oppose funding for Ukraine’s defense against Russian invasion. Chip Somodevilla/Getty Images/AFP (Photo by CHIP SOMODEVILLA / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
Inflation in the last full month of the Biden administration, December 2024, was 2.9 percent. Photo: CHIP SOMODEVILLA / GETTY IMAGES NORTH AMERICA / Getty Images via AFP
Inflation under Biden and Trump
Trump falsely claimed that, during Joe Biden's presidency, the US had "the highest" inflation "in the history of our country." Trump could have fairly said that the year-over-year US inflation rate hit a 40-year high in June 2022, when it was 9.1 percent, but that was not close to the all-time record of 23.7 percent, set in 1920. (And the rate then plummeted. Inflation in the last full month of the Biden administration, December 2024, was 2.9 percent; it was 3 percent in January 2025, a month partly under Biden and partly under Trump.)
Trump also claimed that there was "virtually no inflation" during his first presidency. He gave himself some wiggle room with the word "virtually," but it's worth noting that there was inflation during his first four years in office; prices rose about 8 percent from the beginning of that presidency to the end. Year-over-year inflation was 1.4 percent in the month he left office, January 2021.
Gas prices
Trump, claiming he has brought prices "way down" since taking office again in late January, said that "gasoline is way under $3." That is true in some parts of the country, but the national average for regular gasoline on the day he spoke was about US$3.24 per gallon, according to data published by AAA - higher than on Trump's inauguration day, when the AAA national average was about US$3.12.
That's not to say Trump is responsible for the increase; presidents have a limited impact on gas prices, and there was a larger increase over the equivalent period last year. But the national average has not fallen during this presidency to date.