Major reason why US has a trade deficit with Canada - petroleum imports. After 9/11, US energy/security policy was to reduce dependence on unstable regions like the Middle East. After the US Energy Policy Act of 2005 it accelerated. The US wanted this; if now unwanted, Canada will find other buyers.
April 11, 2025 at 7:39 PM
Major reason why US has a trade deficit with Canada - petroleum imports. After 9/11, US energy/security policy was to reduce dependence on unstable regions like the Middle East. After the US Energy Policy Act of 2005 it accelerated. The US wanted this; if now unwanted, Canada will find other buyers.
End game. Manufacturing bifurcates. Producers make within the US solely for US market; zero exports as their goods are too expensive. Required inputs - energy, steel, lumber, etc - charged at a premium. Meanwhile, producers worldwide make for global market, trade with limited barriers, life goes on.
April 9, 2025 at 4:36 PM
End game. Manufacturing bifurcates. Producers make within the US solely for US market; zero exports as their goods are too expensive. Required inputs - energy, steel, lumber, etc - charged at a premium. Meanwhile, producers worldwide make for global market, trade with limited barriers, life goes on.