The U.S. Bureau of Economic Analysis says the United States actually has a trade surplus of US$7.7-billion with Canada. The Office of the United States Trade Representative (USTR) – the agency charged with renegotiating NAFTA – calculates the United States’ advantage as being even greater, at US$12.5-billion. According to the USTR, Canada runs a surplus in the trade of goods but the United States more than makes up for it with a surplus in the services sector.
.. The President has long been the focus of fact-checkers – a tally by the Washington Post found more than 2,000 false statements since he took office – but it is rare for him to admit that he does it. His book The Art of the Deal memorably described lying as “truthful hyperbole.”
“It’s an embarrassment to the United States for the President to be lying to other countries. There are a lot of issues where the United States has made commitments to other countries; if they can’t have confidence in the word of the President, they can’t have confidence in those commitments,” said Jordan Tama, a foreign-policy expert at American University in Washington.
Mr. Trump is preparing for sensitive talks with North Korean dictator Kim Jong-un – a high-stakes gambit aimed at avoiding a nuclear confrontation.
Roland Paris, Mr. Trudeau’s former foreign-policy adviser and now a professor of public and international affairs at the University of Ottawa, said world leaders learned a while ago to be careful when interpreting what Mr. Trump says and not to engage in a public spat with him.
“Trump’s language is a mish-mash of selective facts, contradictions and fabrications, but his actions are a lot more important than his words,” Prof. Paris said. “I think that the Prime Minister has been handling the Canada-U.S. file very brightly and it has involved not publicly provoking a thin-skinned President.”
Mr. Trudeau’s shrewdness is, at least, one thing on which the President would agree. In the fundraising speech, he expressed some grudging admiration for Canada’s firmness at the NAFTA table, where Ottawa is fighting back against Mr. Trump’s protectionist demands.
“Canada,” Mr. Trump said, “they negotiate tougher than Mexico.”
Trump Repeats False Claim About Canada After Admitting Uncertainty Over Figure
President Trump repeated on Thursday his false assertion that the United States runs a trade deficit with Canada, the morning after privately telling Republican donors that he had deliberately insisted on that claim in a meeting with Prime Minister Justin Trudeau of Canada without knowing whether it was true.
Mr. Trump’s private admission to having a loose grasp of the facts and his public refusal to back down from the incorrect statement — the United States has an overall surplus in trade with Canada — were vivid illustrations of the president’s cavalier attitude about the truth, and a reminder of how that approach has taken hold at the White House.
Sarah Huckabee Sanders, the White House press secretary, said Mr. Trump had chosen his figures selectively in the conversation with Mr. Trudeau and in a subsequent Twitter post that repeated the claim. The president was referring only to the trade of goods, which ignores the larger trade surplus in services the United States exports to Canada, Ms. Sanders said.
And in a briefing with reporters, she acknowledged that Mr. Trump had fabricated an anecdote he told the donors about unfair trading practices — Japanese officials, he claimed, conduct a test on American cars by dropping a bowling ball on their hoods from 20 feet high, and those that dent are barred from being imported.
“Obviously, he’s joking about this particular test,” Ms. Sanders told reporters who confronted her about the veracity of the tale. “But it illustrates the creative ways some countries are able to keep American goods out of their markets.”
Her explanation came two weeks after Hope Hicks, the White House communications director, told lawmakers on Capitol Hill that she sometimes told white lies on behalf of Mr. Trump.
The latest instance of Mr. Trump bending the truth emerged after The Washington Post published an account of the president boasting about his disingenuous exchange with Mr. Trudeau at a fund-raising dinner on Wednesday night in Missouri. On Thursday, the president refused to back down from the erroneous claim about the trade balance between the United States and Canada.
“We do have a Trade Deficit with Canada, as we do with almost all countries (some of them massive),” Mr. Trump wrote on Twitter. In an audio recording from the dinner obtained by The Post, a transcript of which was published on Thursday, Mr. Trump recounted how he pressed that point in a meeting with Mr. Trudeau even though he had “no idea” whether it was true.
The United States ran a trade surplus of $600 million in goods and services with Canada in January, according to the Commerce Department
.. But during the fund-raiser for a Senate candidate in Missouri, Mr. Trump said he had refused to concede the point in a meeting with Mr. Trudeau, as the prime minister repeatedly pushed back.
“He said, ‘No, no, we have no trade deficit with you, we have none; Donald, please,’” Mr. Trump told the donors according to the transcript, calling Mr. Trudeau a “nice guy, good-looking.”
“I said, ‘Wrong, Justin, you do.’ I didn’t even know,” Mr. Trump said. “I had no idea. I just said, ‘You’re wrong.’ You know why? Because we’re so stupid.”
Mr. Trump’s retelling drew rebukes from some diplomats and lawmakers who argued that it reflected a dangerous penchant by the commander in chief to misrepresent the truth.
“The president’s admission that he’s literally making things up while speaking face-to-face with a world leader should stop us all in our tracks,” said Representative Eliot L. Engel, Democrat of New York and the ranking member of the Foreign Affairs Committee. “How can any other government — ally or adversary — have any confidence in what our president says when he admits to lying?”
During the conversation, the president said he and Mr. Trudeau had tangled repeatedly about the trade balance, with the prime minister saying, “Nope, we have no trade deficit,” and Mr. Trump ultimately sending an aide to, “Check, because I can’t believe it.”
The president then claimed that his contention had been validated, appearing to quote an aide he said had told him, “‘Well sir you’re actually right. We have no deficit, but that doesn’t include energy and timber. But when you do, we lose $17 billion a year.’ It’s incredible.”
.. Officials in Mr. Trump’s administration insisted that the United States runs a steel trade deficit with Canada even though data from both governments show that trade is balanced.
.. Mr. Trump’s top trade negotiators have presented a list of demands for revising Nafta that Canada has declared unacceptable. Mr. Trudeau has said that Canada is prepared to abandon Nafta rather than accept a “bad deal” and Mr. Trump has similarly threatened to withdraw from the pact.
.. Bruce A. Heyman, the United States ambassador to Canada under President Barack Obama, said that Mr. Trump’s approach was “creating a crisis where none existed before.”
“Lying to your friends only hurts the relationship,” Mr. Heyman wrote on Twitter. “Canada has been there for us thru thick and thin. How can you just casually damage this realtionship?”
Trump has been playing right into China’s hands
U.S. steel jobs have been mostly lost due to technological change (i.e., robots, not China). U.S. aluminum jobs have been mostly lost to places with cheaper electricity (i.e., Iceland, which is coincidentally also not China).
.. Right now China isn’t even among the top 10 producers of U.S. steel imports. The top country we import from is Canada ..
.. If hurting Canada is Trump’s best strategy for intimidating China, our next step should be maple-syrup taxes.
.. Every time, he has played right into Chinese hands.
Take, for instance, the Trans-Pacific Partnership. This 12-country pact deliberately excluded China; it was to make sure the United States rather than China got to “write the rules of the road for trade in the 21st century,” as then-President Barack Obama put it.
.. Their version stripped out some of the conditions won by U.S. negotiators, such as increased intellectual property protections for pharmaceuticals.
.. After it became clear the Chinese constitution would change to allow President Xi Jinping to hold power indefinitely, Trump didn’t criticize the authoritarian move. Instead, in comments secretly recorded at a fundraiser last weekend, he expressed admiration for Xi as “a great gentleman” who “treated us tremendously well when I went over there.” Xi, Trump cheered, had just made himself “president for life. . . . I think it’s great.”
.. Trump jokingly added that “maybe we will give that a shot someday,” the line that got the most attention. But the comments letting Xi off the hook, in fact praising Xi for consolidating power, were far more consequential. They signal to China that not only do we not care about the country’s increasing authoritarianism; we encourage it.
.. Xi has charmed the pants off Trump, who appears envious of the Chinese government’s military parades, press controls, disregard for human rights and other totalitarian perks.
China’s most dangerous possible export to the United States isn’t a metal. Increasingly, it’s a style of political leadership.
Trade Wars Are Destructive. Of Course Trump Wants One.
.. as with so many other policies he has supported, he appears to have little understanding of this one.
.. Many White House aides, including Mr. Trump’s chief economic adviser, Gary Cohn, appeared to be caught off guard by the decision; on Wednesday, Mr. Cohn had warned that he might resign if Mr. Trump went through with the tariff plan.
.. The stock market fell sharply after the announcement because investors feared that the move was the first of several that could result in escalating disputes
.. The steel and aluminum tariffs are ostensibly aimed at punishing China, which has been driving down prices for those commodities by producing far more metal than the world can use. But Mr. Trump’s move will have a limited effect on China because much of the steel and aluminum the United States imports actually comes from allies like Canada, Brazil, South Korea and Mexico.
.. the move could hurt American businesses that use these metals, including auto and construction companies
.. If Mr. Trump were truly interested in getting China to reduce its excess production, he would have worked with the European Union, Canada, Japan, South Korea and other countries to put pressure on Beijing. Those nations tend to be closely aligned with the United States and have also been hurt by China’s mercantilist economic policies.
.. threatening to retaliate forcefully against the new Trump tariffs. They could do so by bringing cases against the United States at the World Trade Organization, or by doing what Mr. Trump did and unilaterally imposing new tariffs on American exports like soybeans and Boeing planes.
.. Canada imports more American Steel than it exports to the United States, giving it the ability to hurt the very industry Mr. Trump claims to want to help.
.. Chrystia Freeland, says Canada buys about half of American steel exports.
.. for every new job at a steel mill or aluminum smelter that is created by this trade decision, the country could lose as many or more jobs at businesses that use those metals, which will now cost more. This is one of the reasons that trade wars are, in fact, not easy to win.
.. Mr. Trump clearly sees trade as a zero-sum game.
.. He and some of his most protectionist advisers, including Peter Navarro, think that if China and Mexico sell the United States more things than they import from America, they are winning.