Letter: Trump being dishonest about trade balances with Canada

By Letter to the Editor on February 11, 2025.

Dear editor,

President Trump has stated that Canada has had a $200-billion surplus in trade with United States. It is well known that the statistics which Trump often quotes are unreliable, but the U.S. Government agencies are quite the opposite.

The U.S. Census Bureau reports that the U.S. imported from Canada US$412.7 billion in 2024; Canada imported from U.S. US$349.4 billion to have a trade surplus of $ 63.3 billion. The largest component of Canada’s trade is net $67 billion for energy [electricity, natural gas and oil]. When this figure is excluded, the surplus shifts to U.S.

Oil is ninety-one per cent of the energy exports. The $ 60 billion paid for oil has also been discounted by approximately 18 per cent below market price, meaning Alberta foregoes about $13 billion in additional revenues, which is a saving for U.S.

Another related calculation is informative. The U.S., with 336 million people, is spending US$1,228 per capita on Canadian imports. On the other hand, Canada, with 41 million people, spent $8,522 for its US imports.Canada spends 6.6 times more per capita for US. imports than the U.S. spends for our products.

The current CUSMA [free trade agreement] was negotiated by President Trump. It is to expire in 2026. Apparently that date is insignificant to Trump.

Political/economic analysts are working overtime explaining the president’s motives. It could be his strategy to have Canada and Mexico improve border security to better control illegal immigrants and drugs, especially fentanyl, from entering into the U.S.

He did mention in the campaign his plan to reduce income taxes for American taxpayers, especially for the wealthy, and tariffs would be imposed on the U.S. trade partners to help raise revenues to replace the lost income taxes.

The numerous executive orders including tariffs are the unfolding of the Trump agenda – MAGA. This is the beginning of a rather tumultuous four years.

Larry Samcoe

Medicine Hat

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