WASHINGTON -- Top Trump adviser Peter Navarro says his disparaging comments about Canadian soldiers who served alongside Americans in Afghanistan were taken out of context, despite being recorded on audio and published in a new book.

Navarro, an economist serving as director of the Office of Trade and Manufacturing Policy for U.S. President Donald Trump, appeared to question Canada’s contribution to the U.S.-led war in Afghanistan, where 158 Canadian soldiers died and more than 40,000 served over the 12-year operation following the Sept. 11, 2001 attacks.

Navarro insists that his comments were not portrayed fairly in "The Madman Theory: Trump Takes On the World,” a new book by CNN chief national security correspondent Jim Sciutto, and that their conversation was about trade differences between Canada and the U.S. despite having shared national security goals.

However, a transcript of the interview, which was recorded by Sciutto and released to CTV News, shows that Navarro was the one who first brought up Canada’s military during a discussion about steel tariffs and the new NAFTA deal.

  • Read a transcript of the exchange between Navarro and Sciutto below

“To get USMCA, president had to get tough,” Navarro says. “He got tough. We got USMCA. So why should we give away our dairy industry and auto industry to Canada under a flawed agreement? That makes no sense. Just because you're across the border and had served together with us and conflicts. I mean, every time that a Canadian shows up in a uniform, it's doing us a favour or, I mean, how's that work?”

Sciutto replies: “A lot of them died in Afghanistan.”

"Yeah,” Navarro says. “But yeah, but was it, were they doing us a favour or were they bought into the idea that they needed to do that as part of the global effort against terrorists? I mean if they were just doing us a favour, maybe their government should have been thrown out of office. Right?”

Sciutto then points out that Canada was not doing the U.S. "a favour" by sending in troops, but that the deployment was part of a historic move by NATO. Following the Sept. 11 attacks, NATO invoked the Article 5 “collective defence” clause for the first time ever, which prompted Canada and other nations to join forces with the U.S. from day one.

“My point here, Jim, is that, is that Jefferson said, ‘Men aren't angels.’ Countries aren't angels, but Mexico—”

Sciutto interjects: “But some are better than others, aren't they? I mean, aren't they? Is Canada Russia?”

“On a continuum certainly,” Navarro replies, “but we can't tolerate Mexico facilitating illegal mass migration from the iron triangle. We can't tolerate Canada for our dairy farms. I mean as a general proposition.”

'EVERY CANADIAN SHOULD BE INSULTED’

In a statement to CTV News on Wednesday, Navarro says he was talking about trade grievances when the military was brought up.

“The remark is being taken out of context,” he said.

"The discussion itself centered around the fact that while the United States and Canada have strong shared national security interests in, for example, the war on terror, there are sharp trade differences between us. This administration greatly honors our veterans and those in uniform amongst our allies that defend democracy and freedom around the world, and the Trump Administration proves that every day. No one should ever doubt that.”

Canadian military brass called Navarro’s comments outrageous, with former Chief of Defence Staff Gen. Rick Hillier, who at one point commanded the NATO ISAF in Afghanistan, saying that “every Canadian should be insulted by comments like that.”

Since Navarro’s comments went public, Hillier said he’s been flooded with calls from U.S. counterparts who say they don’t share Navarro’s views.

Defence Minister Harjiit Sajjan also weighed in on Thursday.

"Canadians will not forget their sacrifice and having served alongside them, I know the American military and everyday Americans will not forget that Canada was there for them in their time of need,” he said.

Sciutto’s book, released earlier this month, offers a deeper look into how Trump’s unpredictable style of politics is alienating U.S. allies and empowering U.S. enemies.

Below is a transcript of the exchange between Navarro and Sciutto:

SCIUTTO: So, I get that approach in China because China is a perpetual bad actor, right? It's always been cheating in a number of realms. I guess it just, when I see the same tactics…

NAVARRO: Germany’s a bad actor.

SCIUTTO: Germany or Canada or Mexico or South Korea.

NAVARRO: Well, I mean let's take Canada. I mean what's good about Canada their dairy having like the highest, well some of the highest dairy barriers to entry of any country in the world. I mean it's like what's good about that? What's good about Canada being a transshipment point now for some of the Chinese stuff that we've got countervailing duties on? I mean it's like this blue eyed brother kind of thing. People kind of look at it as, it's just Canada has its own national interests and self-interests.

SCIUTTO: For sure. Every country does.

NAVARRO: And their ideology is really out of step with Trump world and they're much more kind of Bernie Sanders and Elizabeth Warren in how they... We'd go to these summits and stuff like that and they're sticking in all sorts of social experimentation into economics communiques. Wait a minute, what do you, we're here to talk about how to... So I mean.

SCIUTTO: If you use the same cudgel with friends as you do with competitors is the question.

NAVARRO: No.

SCIUTTO: I mean didn't we with Canada? Like steel tariffs.

NAVARRO: Look, look, look. To get USMCA, president had to get tough. He got tough. We got USMCA. So why should we give away our dairy industry and auto industry to Canada under a flawed agreement? That makes no sense. Just because you're across the border and had served together with us and conflicts. I mean, every time that a Canadian shows up in a uniform, it's doing us a favor or, I mean, how's that work?

SCIUTTO: A lot of them died in Afghanistan.

NAVARRO: Yeah. But yeah ... but was it, were they doing us a favor or were they bought into the idea that they needed to do that as part of the global effort against terrorists? I mean if they were just doing us a favor, maybe their government should have been thrown out of office. Right?

SCIUTTO: Well, they invoked the NATO charter.

NAVARRO: My point here, Jim, is that, is that Jefferson said, "Men aren't angels." Countries aren't angels, but Mexico --

SCIUTTO: But some are better than others, aren't they? I mean, aren't they? Is Canada Russia?

NAVARRO: On a continuum certainly, but we can't tolerate Mexico facilitating illegal mass migration from the iron triangle. We can't tolerate Canada for our dairy farms.