Fact Check: Is Trump's claim that US banks cannot operate in Canada true?
WASHINGTON, DC: President Donald Trump has reportedly claimed that US banks cannot do business in Canada during a recent meeting with travel industry executives at the White House.
Trump made the remarks after a reporter asked him about the possibility of renewed trade talks between the United States and Canada, as the two countries continue to face tensions over trade and tariffs. Let’s fact-check the claim.
Claim: Trump said US banks cannot do business in Canada
🚨 PRESIDENT TRUMP JUST UNLEASHED: "Canada has been RIPPING OFF the United States for many, many years, for DECADES, many decades. We lost anywhere from 60 to 100 billion dollars with Canada!"
— Eric Daugherty (@EricLDaugh) September 2, 2026
"It's a very unfair deal. They charge tremendous tariffs to our farmers. They take… pic.twitter.com/b3TjKnhAKl
At a press conference on Wednesday, September 2, Trump accused Canada of taking advantage of the United States by imposing what he called “tremendous tariffs” on American farmers. He also accused Canada of taking advantage of US tourists and airlines.
Trump also expressed frustration about how many US banks operate in Canada. He said the issue was “sort of emblematic of the way they treat us,” repeating a complaint he has made during the ongoing trade dispute.
Trump told reporters in the Oval Office, "Canada has all of its major banks here, and we’re their biggest source of income, far bigger than they are in Canada. They basically don’t allow banks of America to be in Canada."
“So, they have their banks here, Bank of Canada, all of them, big banks, big, beautiful banks. I think they have six or seven major banks here. We don’t have our banks there. You know why? They don’t allow it,” he said.
Fact Check: The claim is false
The claim is false. According to a spokesperson for the Canadian Bankers Association, 15 US-based banks currently operate in Canada through branches or subsidiaries.
Experts say some regulations can make it harder for US banks to compete in Canada, but they can still enter the Canadian market.
The Federal Reserve’s latest data also shows that eight Canadian banks operate in the United States. The Bank of Canada is not one of them because it serves as Canada’s central bank, similar to the US Federal Reserve, rather than operating as a commercial bank.
James Thompson, a finance professor at the University of Waterloo in Ontario, said differences between the US and Canadian banking systems may have caused some confusion.
He explained that US banks can operate in Canada, but the type of business structure they choose determines what services they can provide.
Canada has three categories of banks: Schedule I, Schedule II, and Schedule III. Schedule I includes Canadian-owned banks. Six major Schedule I banks hold more assets than the country’s 28 smaller banks combined. Foreign banks can operate in Canada as either Schedule II or Schedule III banks.
Nathalie Bergeron, a spokesperson for the Canadian Bankers Association, said US-based bank branches and subsidiaries in Canada hold about C$124.6 billion in combined assets. She added that this amount accounts for more than half of the assets held by foreign bank branches and subsidiaries in Canada.
