Donald Trump blasts Canada for banning US banks: Whats that all about?

President Donald Trump lashed out at Canada for making it impossible for US banks to “do business there” — before moving to cool fears of a trade war with America’s northern neighbor.“Canada doesn’t even allow US banks to open or do business there.What’s that all about?” the commander-in-chief wrote on his social media platform, Truth Social.However, there is no law in Canada that bans US lenders from operating in the country.Sources briefed on the matter said he was singling out Ottawa’s tougher approach to regulating its banking and financial sector.A White House spokesperson referred The Post back to the president’s remarks when asked to clarify them.Hours after the Truth Social post, Trump agreed to delay plans for a 25% tariff on Canadian products and a 10% levy on Canadian energy by 30 days, hinting at a possible deal to end the row.Trump had argued that the move was justified because Canada’s left-wing prime minister Justin Trudeau failed to tackle illegal immigration, drug smuggling, and the trade deficit between the two countries.US banks make up half of all foreign banking assets in Canada, according to the Canadian Banking Association.The group, an association that defends the interests of banks and financial institutions north of the border, said American lenders control around $113 billion in assets.For example, Wall Street titan JPMorgan employs 600 people in Canada, according to its website, across four major cities including Toronto, Vancouver, Calgary and Montreal.The Jamie Dimon-led lender says it has operated in the country for more than a century.

Citibank, Bank of America and Wells Fargo also have a presence in CanadaUS banks are allowed to operate in Canada under the 1991 Bank Act, which gives foreign lenders the choice of operating under two categories.Foreign lenders can apply to become a so-called “Schedule II” bank by creating a domestic Canadian subsidiary that can do business and legally accept deposits.JPMorgan...