Isn't it incredible that Trump admits this? Did he do so because he thinks his guess was later vindicated? I found that part of the quote in the initial report hard to follow.
Clarification can be found at Hot Air, which remains about the only conservative site worth visiting, explaining as follows:
Is that true, that we “lose” $17 billion a year to Canada? It is, just like you “lose” every time you go to the grocery store and hand over cash for food. But if you look more closely at the numbers, you’ll see that Trump is cherry-picking: We “lose” only if you’re comparing exports and imports of goods. If you look at the total trade balance between U.S. and Canada, which includes goods and services, we “win.” In 2016, our trade deficit with Canada in terms of goods was $12.1 billion but our trade surplus in terms of services was $24.6 billion, with exports of $54.2 billion versus imports of $26.9 billion. Even by Trump’s own strange metric of trade “winners” and “losers,” America comes out ahead overall in the relationship by about $12.5 billion.Slate puts it more bluntly (my bold):
But even if it was Canada that ended up with the surplus, the volume of trade between the two countries is so enormous that it’d be bananas to risk the relationship over a rounding error like $12.5 billion. Total trade between the U.S. and Canada in 2016 was $627.8 billion, with exports supporting more than a million American jobs. Last year, the $282 billion in goods that the U.S. sent north across the border was the largest amount of exports to any single nation on Earth. Even using Trump’s own math, the trade deficit in goods is a measly three percent of total U.S./Canada trade, which probably explains why Trudeau was insisting “we have no trade deficit.” Effectively, we don’t. And as I say, when you include services, there’s *really* no deficit. It’s a surplus for the U.S.
Judging America’s trade performance based on goods alone would not make any sense, mind you; exports are exports, whether you’re talking about cars or financial services. But perhaps Trump heard that number, and mistakenly took it to mean that the U.S. has an overall trade deficit with Canada.
If that’s the case, it would still be a cause for concern. Trump is trying to renegotiate the North American Free Trade Agreement, and being misinformed about basic trade statistics makes it even less likely that he will make rational decisions about the future of the pact.It’s also possible that Trump is surrounded by yes-men, one of whom fed him a misleading statistic in order to confirm his own mistaken assumption. That would also obviously be cause for concern.But in the end, this is all just a reminder a broader problem: Our president lives in a solipsistic fantasy world, where facts mostly exist to confirm his own intuitions, and his staff either aren’t capable of correcting him or don’t want to. When it comes to legislation, that ignorance limits him to making nonsensical demands of Congress, because he simply doesn’t understand the issues. But when it comes to issues like trade, where he can unilaterally change U.S. policy with the stroke of a pen, his ignorance is an immediate menace.
1 comment:
He is only good at breaking deals hence North Korea. He is hopeless at making them. what makes it worse he think trade is a zero sum game.
A complete idiot. No wonder he is Katsy's poster boy.
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