Photograph Source: Gary Todd – Public Domain

With Donald Trump seemingly determined to push the US economy on a path towards autarky, our major trading partners will need to make alternative arrangements. This is especially the case with Canada, since its economy is so closely tied to the US economy.At this point, Mark Carney, the country’s new Prime Minister, knows there is little possibility of dealing with Trump rationally. Trump has bizarre and totally imagined grievances against Canada. His main complaint seems to be that the United States runs a $200 billion trade deficit with Canada, which Trump describes as Canada ripping off the United States.

It’s hard to believe that anyone would say that selling stuff to a willing and well-informed customer is ripping them off. Presumably we buy stuff from Canada because it’s cheaper than the stuff we either produce ourselves or could buy from other countries.

Also, the deficit is entirely due to purchases of oil from Canada, something Trump sought to promote in his first term. We have mostly balanced trade if we exclude oil. In fact, the claims of unfairness are based on a treaty that Trump himself negotiated in his first term.

Trump can’t even get his numbers straight. Rather than being $200 billion, our trade deficit is less than one-third this size, at just........

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