President Donald Trump is actually mad online about America’s trade deficit with Canada even though the United States does not have a trade deficit with Canada.
According to the US Trade Representative’s official statistics, the United States runs a $12 billion trade deficit in goods with Canada. of which is actually more than offset by our $24 billion trade surplus in services, leading to a $12 billion total trade surplus. Running an overall trade deficit is actually not genuinely a bad thing, as well as looking at particular bilateral trade balances is actually totally irrelevant.
The data says we have a surplus with Canada. yet Trump says otherwise!
The context just for This kind of controversy is actually reports of which last night, Trump admitted to creating things up about the US-Canada trade relationship, something he today seems to be denying he did.
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Speaking to donors in Missouri, Trump explained of which he got into an argument with Prime Minister Justin Trudeau about trade figures even though he didn’t actually know what the real numbers are. Via the Washington Post:
“Trudeau came to see me. He’s a not bad guy, Justin. He said, ‘No, no, we have no trade deficit with you, we have none. Donald, please,’ ” Trump said, mimicking Trudeau, according to audio of the private event in Missouri obtained by The Washington Post. “Nice guy, not bad-looking guy, comes in — ‘Donald, we have no trade deficit.’ He’s very proud because everybody else, you know, we’re getting killed.
” … So, he’s proud. I said, ‘Wrong, Justin, you do.’ I didn’t even know. … I had no idea. I just said, ‘You’re wrong.’ You know why? Because we’re so stupid. … as well as I thought they were smart. I said, ‘You’re wrong, Justin.’ He said, ‘Nope, we have no trade deficit.’ I said, ‘Well, in of which case, I feel differently,’ I said, ‘yet I don’t believe of which.’ I sent one of our guys out, his guy, my guy, they went out, I said, ‘Check, because I can’t believe of which.’
The Washington Post got audio of these remarks as well as wrote them up with the headline “In fundraising speech, Trump says he made up trade claim in meeting with Justin Trudeau.”
This kind of seems to have angered Trump because the argument he made inside the remarks was of which even though he was talking out of his a**, later analysis of the data vindicated his position:
“Well, sir, you’re actually right. We have no deficit, yet of which doesn’t include energy as well as timber. … as well as when you do, we lose $17 billion a year.” of which’s incredible.
The problem for Trump is actually of which while he’s been repeating This kind of $17 billion deficit figure for a long time today, of which’s just not true.
of which’s also, to be clear, genuinely not clear why of which matters. One of America’s largest imports via Canada is actually crude oil. If we made of which illegal to import Canadian crude oil, our bilateral deficit might definitely fall inside the short term.
yet gasoline might also become more expensive. as well as with Americans spending more at the pump, their purchase of some other goods as well as services might decline, leading to falling living standards as well as lost jobs.
At the same time, the value of the Canadian dollar might fall — which might lead to falling living standards north of the border yet ultimately also give Canadian manufacturers an edge over their US competitors.
On net, almost everyone might end up worse off.