Donald Trump has demonstrated beyond a shadow of a doubt that he understands absolutely nothing about international trade or trade deficits. He’s still attacking Canada, claiming that they’re “ripping us off” because they run a very small trade surplus in trade. He has actively lied about the subject before, of course, as he lies about absolutely everything. The Washington Post debunks this nonsense.
Yes, car imports from Canada far exceed cars shipped the other way. But those cars assembled in Canada are often made up of engines, bodies and parts imported from the United States. Add up the trade in all automotive goods with Canada, and it comes out about even. The United States exports 99 cents’ worth of automotive goods to Canada for every dollar of imports.Overall, Canada could even be called the United States’ best major trade partner. It’s the largest export market for U.S. goods, and the $582 billion trade is by far the most balanced. The United States exports 94 cents’ worth of goods to Canada for each dollar of imports. In trade with the rest of the world, it’s only 62 cents.
But here’s the real problem with Trump’s claim. Canada has about 1/9th the population of the United States, which means we have market for goods that is nine times larger than they do. Of course they sell more to us than we sell to them. The fact that it’s even close to even is astonishing given that fact. I don’t know how Justin Trudea manages not to just call a press conference and call Trump a blithering idiot. They are one of our closest allies and our 2nd largest trading partner and he has done nothing but lie about them and insult them. The man is a menace and needs to be stopped.