Trump Says U.S. Banks Can’t Do Business in Canada. It’s Not That Simple.

Hours after imposing steep tariffs on Canada, President Trump raised an issue that even the American lenders whose cause he’s championing find perplexing: the access, or lack thereof, of U.S. banks to the Canadian market.

On Tuesday, Mr. Trump wrote in a post on Truth Social, “Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market.” He added sarcastically, “Oh, that seems fair to me, doesn’t it?”

While this issue doesn’t often come up in conversations with prominent American bank executives, it appears to be increasingly on the president’s mind.

Mr. Trump mentioned the Canada banking issue early last month as part of a broader criticism against what he views as the unequal economic balance between the United States and its northern neighbor. Writing on Truth Social, Mr. Trump said Canada “doesn’t even allow U.S. Banks to open or do business.”

Here is the actual state of play for U.S. banks in Canada:

Can U.S. banks operate in Canada?

Canada’s banking sector is dominated by the “Big Six,” the half-dozen institutions including the Royal Bank of Canada and TD Bank. They are permitted to take deposits, extend mortgages and advise corporate clients — all the core activities for banks. And Canadian customers disproportionately still prefer to do their banking in person, as opposed to online, meaning it would require a major physical presence for any entrant to attempt to enter the market.

Additionally, U.S. banks are restricted in what they can do in Canada.

Foreign banks, including American ones, must either work with a Canadian middleman, establish a Canadian subsidiary or receive special government permission to do business. Unless they agree to follow Canada’s stringent banking rules that include holding a hefty sum of cash-like assets in reserve at all times, they cannot operate retail branches that take deposits under around $100,000.