Now that tariffs are starting to hit selected products imported to Canada from the US in retaliation for the American tariffs on steel and aluminum, we are starting to pay attention to value of trade between us and our trading partners.
We exported $48 billion worth of stuff in May and we imported $49 billion. So we have a trade deficit with the world….buying more than we’re selling.
And the biggest piece of that deficit is with the US… They sell us $3.8 billion more than we sell them. And that gap is growing …the previous months were $3.7 billion and $3.3 billion.
Now Canada has responded with tariffs of our own so in the coming weeks we will begin seeing the price of selected imported good going up….basically we will be paying more. The idea is to discourage us from buying those goods – or if we do we pay a premium which can be used to offset job losses or lost business income. So it might feel good that we’re whacking the US….but on this file, we actually whacking ourselves to move us to different suppliers like China or Europe …and punish the US for its tariffs.