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).
We do have a Trade Deficit with Canada, as we do with almost all countries (some of them massive). 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!— Donald J. Trump (@realDonaldTrump) March 15, 2018
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
