Thursday, March 15, 2018

Does Canada Enjoy A Trade Surplus With The U.S.?



Politico: Trump repeats Canada trade deficit claim after boasting about bluffing to Trudeau

President Donald Trump repeated his controversial claim on Thursday that the U.S. has a trade deficit with Canada to swipe at Canadian Prime Minister Justin Trudeau, a day after boasting about attempting to bluff the Canadian leader on the subject.

"We do have a Trade Deficit with Canada, as we do with almost all countries (some of them massive),” Trump said on Twitter on Thursday morning. “P.M. Justin Trudeau of Canada, a very good guy, doesn’t like saying that Canada has a Surplus vs. the U.S. (negotiating), but they do...they almost all do...and that’s how I know!”

Read more ....

WNU Editor: Both men are actually right. Trade deficits come and go, but historically the U.S. has always had a massive trade deficit with Canada .... until the last 3 years. And the reason why is simple .... oil.

.... In a word, oil. The U.S. is producing more oil and natural gas than it has in years because of the “fracking” revolution. Global oil prices also fell sharply from 2015 until the middle of 2017.

In 2014, the U.S. ran an $81.1 billion trade deficit with Canada in oil and gas. The gap shrank to $35.4 billion in 2016 before climbing to $50 billion last year amid a spike in petroleum prices.


The above numbers are from Market Watch .... Why Trump is wrong about a Canada deficit, but not off base in trying to get a better deal (Jeffry Bartash, Market Watch).

So is this a big story .... for someone like myself who follows stories on international trade closely .... no. But I live in Canada, and it is hilarious to see the "breathless" coverage from the Canadian press on this story.

Update: I have mentioned this before, but what would change this U.S.Canada trade balance dramatically (in favor of Canada) is if Canada can resolve the problem that it has in shipping out its crude. Many Americans (and Canadians) may not know this, but because of transport and pipeline bottlenecks, Canada has been dumping its oil on U.S. markets at more than half the current world price .... Pipeline bottlenecks push Canadian oil price to deepest discount in 4 years (CBC).


More News On President Trump And Canada's Trade Deficits

In fundraising speech, Trump says he made up trade claim in meeting with Justin Trudeau -- Washington Post
Trump boasts he made up trade facts in meeting with Trudeau -- The Globe and Mail
Trump, on tape, admits making up trade facts in talks with Canadian PM Justin Trudeau, 'Washington Post' reports -- USA TODAY
I KNOW Canada has a trade deficit because they almost all do says Trump after he admits making up claim when he talked to Justin Trudeau -- Daily Mail
Why Trump's admission that he made stuff up to Justin Trudeau is particularly bad -- Washington Post
Justin Trudeau politely corrected Trump on trade, says Trump himself -- Quartz

12 comments:

Unknown said...

So it looks as though this meeting never took place. The Canadians don't know what meeting Trump is talking about. The guy just can't stop lying. It would all be rather amusing if this jerk wasn't President. I used to live in the New York area and Trump was always a big joke with all the BKs and failures. Little did we know...

Unknown said...

Trump is right, again.

Unknown said...

Right about what? About a meeting that only happened in his head? About not knowing whether there was a trade deficit or surplus? He had a 50-50 chance on that and guessed wrong.
The guy lies about everything and is complicit in destroying the State Department. You know, the State Department that actually knows if there was a meeting and what the trade situation is with Canada.

Unknown said...

"About not knowing whether there was a trade deficit or surplus?"

Man, but you are deficient.

I bet people like you are the life of the party, when it comes to Riemann sums or cdf's. Sad thing is, no beer would be needed.

Funny, I am reading an article about how the State Department was complicit in getting the U.S. into WW2 through its bungling.

You said 'State Department' as though the name alone meant that it was proof of their competence.

Much money is made off of people like you on Wall Street.

Unknown said...

Thanks for your concern about my social life, dude, but I do just fine. Thanks again!

I'm really not interested in refighting WWII again there are plenty of conspiracy sites for that. I'm into the here and now.

You really think the sign of a good business "deal maker" is to not be prepared about basic facts? Trump said that himself or are you going to go with Sara H and say it was all just a big joke? If anybody came to me unprepared about what they are doing I'd maybe give them a chance, then show them the door and write them off as incompetent. It all doesn't matter anyway because this all seems to have taken place in Trumps dream world where he meets with Trudeau after parachuting into a school shooting situation and kills the bad guy with his bare hands. Or something.

But you know, it's all so a couple of days ago now. We have more porn stars, the GOP imploding and now direct from NY city money laundering seems to finally caught up to Trump.

And it's only just noon here in DC! Yep I'm one of "those guys".

I know, fake news, Hilary, Obama, conspiracies, etc. Got it.

Unknown said...

"I'm really not interested in refighting WWII again - Jason

"Those who do not learn history are doomed to repeat it.'

The quote is most likely due to writer and philosopher George Santayana

There are many thing to learn about military science, politics and other things from WW2. It is especially fertile ground as the Left learned all the wrong lessons. They prove it every year if not more often.

Unknown said...

The fact is unemployment is low, very low. This is good. The lower it gets, the more wages rise.

The Left is forever belly aching, protesting, prostrating themselves and crotch grabbing over low wages.

Here we are going to get rising wagers and it is not due to them. It is despite them.

Just the facts of as Trump economy.

Unknown said...

correction

"of the Trump economy." not "as Trump economy."

Unknown said...

Aizino Smith said...
"I'm really not interested in refighting WWII again - Jason
*snip, blaa blaa blaa*
They prove it every year if not more often.

WWII is not the topic here. The topic is Trump and his made up world he has in his head.

"The fact is unemployment is low, very low. This is good. The lower it gets, the more wages rise.

The Left is forever belly aching, protesting, prostrating themselves and crotch grabbing over low wages.

Here we are going to get rising wagers and it is not due to them. It is despite them.

Just the facts of as Trump economy."

I though all those numbers are made up fake news numbers. Trump told us the real unemployment rate was 24% or whatever made up number he had. Now they are OK? I guess you should be thanking Obama, right? BTW the GDP dropped way below what Trump thought and less than what the Fed had predicted.

Unknown said...



"You know, the State Department ...." - JJ

Funny, I am reading an article about how the State Department was complicit in getting the U.S. into WW2 through its bungling. -Aezino giving an anecdote of State Department prowess.

"I'm really not interested in refighting WWII..."- JJ

"Those who do not learn history are doomed to repeat it.' - George Santayana

"WWII is not the topic here. ..." - JJ

There are more articles of State Department FU's

Unknown said...

OK, OK you got me. The State Department caused WWII. Trump is a misunderstood genius. You are right about everything.

My name is Bugs Bunny, millionaire. I own a mansion and a yacht.

Unknown said...

So you think wealth proves the validity of your arguments.

"Documentary Reveals Secrets of Hitler's $5 Billion Missing Fortune" - Haaretz

Bill Clinton is rich. He is not particularly smart.

Al Gore is rich. He is as dumb as a box of rocks.