Relations between Canada and the United States have been rocky since the start of President Donald Trump’s second term, but trade tensions have not led to Canada rejecting a multibillion-dollar rail deal requested by the United States, as claimed on social media. This claim is not consistent with current train schedules or configurations, and the videos spreading these claims appear to be part of a larger AI network spreading unverified stories.
“The United States just asked Canada for a $573 billion railroad bailout, and the response they received is being described as the most humiliating judgment ever directed at a President of the United States,” the speaker said in an Instagram Reel on May 26, 2026.
The video continues in stilted language claiming that after Ottawa refused relief, it began to disrespect Washington by pulling rail lines across the border to shore up Canadian lines.
Various versions of the video spread across Instagram, TikTok, threads, LinkedIn and Facebook, many praising Canada.
Screenshot of an Instagram post taken on June 3, 2026, including the AI logo added by AFP
Canada has distanced itself from its historic ally since President Trump returned to the White House in 2025 and incited a trade war with tariffs.
As the two countries intensify talks to renegotiate the U.S.-Mexico-Canada trade agreement, President Trump again provoked the United States on June 1, saying Canada could become the 51st U.S. state after its economy shrinks (see archive here).
The fragile relationship between the two countries has given rise to numerous false claims, and posts claiming that rail relief has been denied are similarly baseless.
AFP could not find any valid evidence that the United States had floated the idea of a multibillion-dollar rail fund from its northern neighbor. A keyword search turns up no news articles about the supposed transaction.
Moreover, claims about subsequent impacts and reinvestment in Canadian railways by Canadian National (CN) and Canadian Pacific Kansas City (CPKC) appear to be entirely artificial.
According to CN and CPKC’s online schedules, both Canadian-headquartered lines continue to operate in the United States as of June 2026 (archived here and here).
Transport Canada told AFP that CN and CPKC are private companies operating independently of the Canadian government.
A reverse image search revealed that the person in the video, an Asian man wearing glasses, has appeared in numerous videos from various political and financial accounts.
However, the persona’s rambling conversations and unsynchronized mouth movements suggest that these various pages are using AI avatars to churn out content.
The Hive Moderation AI detection tool assessed that videos about rejected rail deals likely contain AI-generated content or deepfake content.
Screenshot of TikTok account taken on June 5, 2026, with AFP adding AI logo
A further search of social media revealed various posts promoting the railroad bailout claims as early as March 2026.
Broadcast-style clips on YouTube used AI to impersonate news anchors, including American journalist Rachel Maddow, to spread the same rumors. The archives of Ms. Maddow’s show do not include instances in which she discussed Canada’s alleged denial of relief.
AFP has previously fact-checked numerous claims about Canada spread through similar “AI slop” campaigns.
Researchers reported that a network of channels targeted Canadians with these types of videos. The videos use paid actors and AI to create sensational, sometimes completely fabricated, news content (archived here).
Read more about AFP’s coverage of misinformation in Canada here.
