I often wonder how it is that Americans can take what they see on the idiot box as fact? Why is it that they fail to actually research?
I mean this quite seriously. Why is it that Americans, (I suppose I should qualify that statement, at least for the time being), or at least 49.9% of them, appear incapable of determining facts from utter bullshit?
Americans of the 49.9 % that voted for their convicted felon, pathological liar and adjudicated rapist, have all the same tools available to them that those of us in the rest of the western world do, — but give half of America’s adults a 15 second sound bite on Fox, and you’ve got them for life.
A Couple of Very Simple Concepts, Donald — Subsidies and Trade Deficits
Trump keeps on telling Americans that they subsidize Canada? Does Trump actually know what a subsidy is? I’d love to have him define it for me. But of course he can’t.
So, no Donald, America does not ‘subsidize’ Canada. It’s nice to start with a basic understanding though, so Donald, “Squirrel”, please pay attention, and stop spreading that toxic agent orange on your skin.
Okay Donald, unless you are providing Canadians with additional funds for the products that we sell to the US, willfully and with your full cooperation, — then no Donald, you are not subsidizing Canadian exports to the US. You’re more than welcome to Donald, — but —- no, you aren’t.
Trade Deficits
First, I’m not going to actually provide every conceivable detail as to why Donald is wrong. I don’t have that much time. I’m 71, and this is an article, not a 12 part trilogy.
Second, I will provide some salient facts that you can read when you get fed up watching Tucker Carson’s lies. The link can be found below.
https://economics.td.com/ca-canada-us-trade-balance
If you still have doubts, the U.S. government itself can corroborate these figures, or at least they could before Donald fired everyone who was competent in the bureaucracy and administration.
Here are some verifiable facts that you can check by simply accessing the TD’s release on the subject. Once again Donald, you can find the facts at;
https://economics.td.com/ca-canada-us-trade-balance
Canada is the largest export market for the U.S. and makes up one of the smallest trade deficits, owing largely to U.S. demand for energy-related products.
U.S. trade deficit with Canada is the second lowest among trading partners
- Chart 5 shows where Canada stacks up against other major countries.
- The ~US$45 billion shortfall with Canada in 2024 places as the second smallest, behind only France. That amounts to a mere 4% of the overall U.S. trade deficit. So, in essence, reducing imports from Canada would barely move the needle.
- The U.S. trade deficit with Canada was 1/8 the size of China’s and 1/5 that of Mexico.
Energy accounts for all of the U.S. trade deficit with Canada
- The trade narrative shifts dramatically when trade flows are decomposed into energy and non-energy components.
- Last year, Canadian exports of energy products (oil, natural gas, power) to the U.S amounted to nearly $170 billion, or almost 1/3 of total shipments. In contrast, energy accounted for only 6% of all U.S. imports. Put simply, Canadian sources are critical to U.S. energy security.
- Remove Canadian energy exports from the equation and the trade story flips. Ex-energy, the U.S. enjoys a trade surplus with Canada of around C$60 (US$45 billion). (Chart 7)
- Canada’s trade advantage in energy has been rising steadily in recent years, most recently on the back of the Transmountain Pipeline Expansion (TMX) that, in turn, has sharply boosted Canadian oil exports to the U.S. west coast in addition to Asian markets.
- Canadian crude is a key supplier to U.S. refining, predominantly in the mid-West, with a steadily growing share in the Gulf coast. Since many refineries are built to process Canadian sour, heavy crude, it’s difficult to shift away from that feedstock to alternative sources. This is true even from the U.S.’s Strategic Petroleum Reserve, which is largely comprised of conventional crude. Countries that could fill the gap are Mexico and Venezuela, but the latter would require lifting sanctions. Given Mexico already enjoys the second largest trade surplus with the U.S., this shift in demand would further widen that chasm, potentially allowing it to overtake China in the pole position.
- If tariffs were extended to Canadian crude oil, it could lead to an immediate jump in U.S. gasoline prices of as much as $0.30-0.70 per gallon. One of the most price-transparent and inflation-sensitive areas for consumers is the movement in gasoline prices.
- Elsewhere, in 2023, Ontario also directly supplied electricity to 1.5 million U.S. homes and is a major exporter of power to Michigan, Minnesota and New York.
Bottom Line
Some of the datapoints in this report may come as a surprise to readers. The bulk of the U.S. trade deficit with Canada is owing to energy. Outside of that, the scales tip into America’s favour. Even with this data, it’s proven insufficient to fend off trade attacks that will extend well beyond this current bout. In mid-2026, the USMCA comes under review. Regardless of the deals that will eventually be struck between countries, the lesson that should be learned in Canada is that there can be no guarantee against future tariff attacks.
Particularly so, when the President of the United States is incapable of telling the truth, or understanding the basic facts associated with trade.
But what can you expect from a businessman who has gone bankrupt, five time.
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