It's like in the UK, when you say "Asian" and this actually means "a person of Indian appearance, i.e Indian, Pakistani, Bangladeshi, Sri Lankan and Oriental being Chinese. It doesn't make a great deal of sense but any other usage will be misunderstood.
Anyway, I like Canada and I don't want to offend that country when I have a go at the USA. It's true that there is some confusion.
Funnily enough Russian media seems to think it's a matter of time before the USA disintegrates into mulitple countries. If that happens the problem with mixing up America with the USA will be gone!