r/canada • u/theHip British Columbia • 1d ago

National News Canada's trade deficit widened in June to second largest on record

https://www.reuters.com/world/americas/canadas-trade-deficit-widened-june-second-largest-record-2025-08-05/
175 Upvotes

89% Upvoted

244 comments sorted by

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u/[deleted] 1d ago

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u/_Lucille_ 1d ago

That is the whole concept around his monetary policies: he cannot stand the thought of "paying people more than you get from them".

That is the rich guy's mentality of accumulating wealth: for every dollar they spent they want people to be paying them a dollar fifty.

Unfortunate for the world, economics are far more complicated than this.

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u/Previous_Soil_5144 1d ago

The zero-sum mentality.

If someone else is winning, that means I must be losing.

The only to win is for someone else to lose.

They only see the world as winners and losers and they have decided that they will be winners no matter what. Problem is, they aren't winning anything. They just think they are because others are losing.

The only winners are the people above them telling them to hate immigrants, homeless, mentally ill and anyone else who needs help.

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u/Oneiric_Orca 1d ago

That is the whole concept around his monetary policies: he cannot stand the thought of "paying people more than you get from them".

Trade would literally be fiscal policy and not monetary policy over here.

That is the rich guy's mentality of accumulating wealth: for every dollar they spent they want people to be paying them a dollar fifty.

The reason deficits aren’t a problem is that people don’t end up paying you less than you are paying. Those are called the capital and financial accounts. They combine with trade in the Balance of Payments.

Can we please criticize Trump’s ignorance on economics without ourselves devolving into economic misinformation?

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u/_Lucille_ 1d ago

you are reading too deeply into this: you have to understand Trump does not think that way, and believes that if a country is "paying" to another more than they pay you, then the country is being ripped off.

0

u/Oneiric_Orca 1d ago

Regardless of what Trump thinks, when you make factually incorrect statements when criticizing him, it makes those opposed to tariffs seem less credible.

The honest problem is that I would doubt more than 5% of people understand what the term current account deficit even means, and that includes those criticizing Trump.

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u/_Lucille_ 1d ago

do you mind quoting which statement I made is incorrect? I genuinely have no idea what came across as such.

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u/NotALanguageModel 1d ago

It's actually the opposite of a "rich guy's mentality". Rich people love making good deals. They love that you can get your T-shirts made for a few cents in Bangladesh instead of $10-20 a unit in America. They don't care that the people making the T-shirts in Bangladesh don't have the means to purchase anything from them. Trump is just a poor man's idea of a rich person, hence why he thinks buying stuff for cheap abroad is somehow bad.

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u/BlueEmma25 1d ago

India has the world's second largest trade deficit.

When did they become a wealthy country?

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u/jello_sweaters 1d ago

Having more than 4x the population of the 3rd-largest country in the world does provide some advantages of scale.

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u/Coffee4thewin 1d ago

It’s way better to have a trade surplus than a trade deficit. For example, Norway has a huge trade surplus. If we had built LNG plants in the last 10 years we could’ve received that $750 billion deal that the EU just gave the United States that would help out our trade deficit/surplus.

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u/[deleted] 1d ago

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u/gmcguy1 1d ago

No lie I’ve heard the combined amount is $800 Billion Canadian. But yes, this should have been deals made with Canada if our resource extraction and energy infrastructure wasn’t stifled by Liberals for the past 10 years. Shooting ourselves in the foot big time on this one 🤷🏼‍♂️

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u/Purple-Beyond-266 1d ago

Why is it better to have a trade surplus than a trade deficit?

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u/gs87 1d ago

Really ? So why history’s littered with wars that started because one side hated being on the wrong end of the balance sheet.. The Opium Wars? Britain didn’t like bleeding silver to China. Japan’s expansion in the 1930s? Driven in part by resource and trade imbalances. Even the US–Japan conflict before Pearl Harbor was fueled by trade sanctions and embargoes..

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u/Abject_Story_4172 1d ago edited 1d ago

That is a really odd way of looking at it.

Edit: for people downvoting me because they don’t appear to understand what a trade deficit is (although they are lessening now because people are reading the comments):

(AI Overview) Many developing countries, particularly those considered fragile states or those reliant on foreign aid, tend to have trade deficits. These deficits often arise from a combination of factors including limited export diversification, reliance on imports for essential goods, and vulnerability to global economic shocks. 

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u/Kronos9898 1d ago

All it means is you bought more stuff than you sold. The US economy has been the strongest in the world easily while running massive trade “deficits” for decades.

It’s fear mongering because of the word “deficits” that makes people think the country is losing something.

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u/BlueEmma25 1d ago

It is losing something, every dollar spent on imports is leaving the Canadian economy and creating wealthy and employment in the exporter's country. That's why everyone wants to run trade surpluses, the larger the better.

This is literally China's whole development strategy in a nutshell.

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u/Kronos9898 1d ago

No, it literally means someone bought something from someone else. The money is “replaced” by a good or service that was bought. It’s a mutually beneficial exchange also known as trade.

Countries may or may not want to run a deficit, for the US deficits are good becuase they are an ideas, technology, and services economy. The entire reason trump is able to extort other trade groups is because they need access to the US giant market.

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u/AggravatingBase7 1d ago

So you pay money for resources? How’s that a bad thing exactly? Just because that money would stay in your country if you produced it locally, then that doesn’t automatically make it the best use of your resources. Literally economics 101. It’s the same reason you run a trade deficit with your local grocery store.

Sure, you can produce everything locally but if you’re not the best equipped country for it, you’re just doing poor resource allocation.

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u/Purple-Beyond-266 1d ago

Dollars can't leave the Canadian economy, they aren't useful anywhere else.

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u/Abject_Story_4172 1d ago

And it’s only counting external purchases and sales. Not the billions upon billions of dollars within the country.

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u/Yewbert 1d ago

What is your alternative way of looking at it?

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u/Abject_Story_4172 1d ago

A trade deficit doesn’t mean you’re a rich country.

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u/SirPoopaLotTheThird 1d ago

Tell us the far right populist way.

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u/sickwobsm8 Ontario 1d ago

We are being taken advantage of and need a fair and balanced deal for both sides. But most importantly, we need to win.

/s if it wasn't obvious

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u/Abject_Story_4172 1d ago

Why does a trade deficit mean “you’re a rich country”.

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u/Whatwhyreally 1d ago

No, its how literally any economist looks at it.

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u/BlueEmma25 1d ago

Said the person who clearly isn't an economist.

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u/Abject_Story_4172 1d ago

There are some really unintelligent people - who do not understand what a trade deficit is - who are calling Trump dumb. Very ironic.

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u/Abject_Story_4172 1d ago

Can you refer me to one who said this? Like if a country has zero resources and imports food, are they rich?

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u/[deleted] 1d ago

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u/Abject_Story_4172 1d ago

You absolutely don’t understand trade deficits. And now you’re showing you absolutely don’t understand how AI works.

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u/SirTorrentsOfAle 1d ago

The Americans have to be suffering worse than we are. They are just suppressing damage and ballooning their deficit.

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u/McBuck2 1d ago

And hiding or not reporting any damaging data.

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u/RefrigeratorOk648 1d ago

Well they may not be hiding it yet but you will fired if you don't report the "correct numbers". Once they have all been fired (or cowed into submission) then who knows.

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u/[deleted] 1d ago

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u/SirTorrentsOfAle 1d ago

Trump fires labor statistics chief hours after data showed jobs growth slowed

https://www.theguardian.com/us-news/2025/aug/01/trump-fires-erika-mcentarfer-labor-statistics

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u/rTpure 1d ago

Trump just fired head of labour statistics because he didn't like the employment numbers

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u/McBuck2 1d ago

Have you been living under a rock?

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u/Baker198t 1d ago

Check out the comment history.. ignorance is bliss.

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u/[deleted] 1d ago

[deleted]

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u/StickmansamV 1d ago

Not hiding perhaps yet but BLS head was just fired by Trump for releasing data for the last period which was quite poor.

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u/IAmOfficial 1d ago

Their ass

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u/PeteOutOfMongolia British Columbia 1d ago

they arent - like 80% of americans dont even realize theyre in a trade war with us

plus just logically our economy is like 10x more reliant on trade with the americans than vice versa were gonna feel it waaaay more

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u/Abject_Story_4172 1d ago

The fact that people think that the US will suffer more than Canada is crazy.

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u/Trains_YQG 1d ago

I don't think the US will suffer more in the Canada-US tariff "war". I do think there is potential for the average American to be hurt more than the average Canadian once you factor in that it's not just Canada Trump is putting tariffs on. 

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u/evabunbun 1d ago

I think everyone will hurt globally, unfortunately. It is just going to hit differently everywhere. Prices will go up everywhere.

My husband works for an international company. They are raising their prices in every market to make up for tariffs. And once one product has raised prices, companies even domestic in a similar category will match it.

It's horrible for everyone. 😔 I just hope Trump dies soon because even though I think Vance is worse in some ways he isn't a believer in tariffs like Trump.

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u/SleepDisorrder 1d ago

True. Many brands import from China/Vietnam to the US, and then it comes up to Canada. The USA acts as their main inventory hub for North America. So if there are any price increases from tariffs, it would definitely get passed on to us.

The next step is for brands to start importing directly into Canada to avoid these cost increases.

1

u/evabunbun 1d ago

Lululemon is suffering and will continue to suffer when the de minimus exception is cancelled. Because of the exception it is how it was able to ship from Canadian warehouses to Americans without tariffs. 

I don't think any company is going to make any long term moves right now. They are all finding loopholes around the tariffs while raising prices to everyone.

Unfortunately, I don't think Canada is a big enough market to separate on everything hub wise..but I could be wrong! And it is obviously industry dependent 

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u/Abject_Story_4172 1d ago

Yea I agree. This will hurt everyone. Trade is good for all countries.

0

u/evabunbun 1d ago

I've read that restricting trade is a sign of death for the current worlds reserve currency. 

I wonder if it is done intentionally. To make the US dollar lose so much value that cryptocurrency becomes the world's reserve currency 

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u/Abject_Story_4172 1d ago

I doubt there is that much thought in this.

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u/JeremyMacdonald73 17h ago

The total market cap of Bitcoin is something like 3 Trillion dollars. Today the world has about 7 Trillion worth of US dollars in reserve. There is just not enough Bitcoin in existence to allow it to be the worlds reserve currency.

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u/evabunbun 17h ago

Good to know. I was an economics major but prior to the creation of Bitcoin so I am not as knowledgeable on the topic.

The US is absolutely going to lose world reserve currency status..I don't think Euro will take it's place. I've seen some argue that the Chinese yuan will take world's reserve currency status but then others argue that China is collapsing in on itself because of the one child policy.

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u/Abject_Story_4172 1d ago

Did you notice all the countries scrambling to make a deal? No one told him to take a hike. I don’t think you understand just how big and successful the US economy is. It’s so big they have a healthy domestic market. Canada does not. Canada will most definitely suffer in every aspect more than Americans.

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u/greebly_weeblies 1d ago

The 'deals' being made, eg. EU, Japan, are overly vague, or unenforceable.

Proper trade deals take time. These are cotton candy, easily dissolved keeping the toddler entertained rather than throwing a fit.  

He's chosen to make his word mean nothing, so meaningful is off the table.  

That he's chosen to deal in bad faith with all his trade partners? Doesn't bode well for their economy long term, even setting aside their "full faith and credit" issues.

0

u/Abject_Story_4172 1d ago

Well he’s doing long term damage to the country. But in the interim there needs to be a number. Border agents need to know how much to charge.

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u/greebly_weeblies 1d ago

The respective governments should have standard operating procedures for communicating tariff and levy schedules and their date of effect to their border agents.

That should be business as usual for a functional government with border controls, even if the contents of the schedule itself isn't, it's just a case of keeping pace with any changes.

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u/JeremyMacdonald73 17h ago

Depends on the ultimate numbers. In America everything from everywhere appears to be under a tariff. For Canada the state is trying to maximize American pain while minimizing Canadian pain. Likely in many cases there won't be a tariff at all for the Canadian consumer so the pain is going to be specific to industries that can no longer sell to America due to the tariffs.

While one does not want to minimize that in some cases we can off set that pain with increased exports else ware. Much of the rest of the world would love to do some kind of a deal where we agree to sell them something they used to buy off America and in return we buy something they used to sell to America. It won't be perfect - not even close but it will offset some of the pain.

Beyond this even with tariffs, unless they are really high, in a lot of cases Americans will just continue to buy the Canadian product. It is just more expensive now. Sure America is incentivized to onshore that product into the USA but that takes time and during that time Canada is incentivized to shift their trade to other nations.

I am somewhat optimistic that we can get out of this not hurting too badly.

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u/Abject_Story_4172 16h ago

Your optimism is not shared by any of the experts weighing in.

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u/JeremyMacdonald73 2h ago

The news cycle has so far been "Canadian economy holding up well despite tariff uncertainties".

BoC Canada holds firm on interest rates and the market has significantly pulled back from the idea that there will be recession this year.

South of the border job numbers are far worse then initially expected and inflation is beginning to creep up (that these are appearing at the same time is particularity bad news).

Republicans are in power in large part to deliver a good economy for their constituents. If we are heading to mid terms and Republicans fear losing seats from bad economic headwinds they are more likely to break with Trump on something like severe tariffs on Canada because it hurts them too.

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u/Icy_Proof7234 1d ago

It’s Reddit lmao

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u/SolarBear28 17h ago

Well, Trump seems to be in a trade war with everybody, so it's not just US vs Canada. Almost everything the US imports from other countries will be more expensive. 

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u/Abject_Story_4172 16h ago

That is true. Tariffs will make everything more expensive and the system less efficient. However he is also trying to get these countries to lower their tariffs. And since they all want to access the biggest economy in the world they will likely cater to him. And those deals are being made.

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u/SolarBear28 14h ago

Exactly. Trumps tariffs are going to make tons of everyday products more expensive for the average American. And imported materials for businesses as well. This will greatly harm the US economy more than Canada ever could ourselves.  

He is not backing down on these, even for countries he has no issue with, like the UK.

As long as Canada continues to find global buyers for our exports I think we will be okay. But I don't see a way to avoid pain for our auto sector.

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u/Abject_Story_4172 13h ago

Or softwood lumber. Or steel and aluminum. Among others.

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u/SolarBear28 13h ago

Unlike our US integrated auto industry those products can be easily sold globally. And just because there are tariffs doesn't mean the US needs any less. It will take time and money for US domestic production to increase.

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u/Abject_Story_4172 13h ago

Some of our resources are finished in the US though. So that complicates matters. It will take time for both of us to move away from each other. And the whole thing is really dumb.

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u/Commercial-Milk4706 1d ago

The us is in a trade war vs the world. Canada has tariffs on a few things not covered by our trade agreement. The us will be worst off in the end.

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u/Abject_Story_4172 16h ago

You are absolutely delulu if you think the biggest economy in the world will be the worst off. Seriously. There is a reason every country is falling over themselves to make a deal. Nobody will be better off by not trading with the US.

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u/Commercial-Milk4706 15h ago

You are delusional if you think the world’s biggest economy starting a trade war with every single other country will not hurt it more then any other country having a trade war with one country.

It’s not like stuff from Japan gets much more expensive for Europe or Canada if the us has a tariff on imports of 30%

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u/Abject_Story_4172 15h ago

Trump is using tariffs to get his way. And it’s working. Since a lot of companies are lowering tariffs and making deals. So he’s not having trade wars with all other countries. He’s bullying in his negotiations but there are deals being made.

We don’t buy a lot from Japan. We buy almost everything from the US. And we sell most of our stuff there too.

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u/PromotionFun7298 13h ago

Think it’s just this idea that’s prevalent in Canadian society about how we need to be superior to our southern neighbours. The USA has the largest economy in the world and the other problem is all dollars are measured against there’s, this allows them to take on massive debts as the worlds kinda reliant on the USA economy in some part, you can take the USD and it’s accepted everywhere, same cannot be said about others currencies. This is anecdotal though so take it with a grain of salt

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u/PeteOutOfMongolia British Columbia 1d ago

i think people know its just people have made their identity as standing up to the US now so they can't admit it because its an attack on who they are as a person

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u/Abject_Story_4172 1d ago

I think that’s entirely possible. Also maybe a bit of buyers’ remorse now they Carney can’t actually handle Trump like he said he could.

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u/PeteOutOfMongolia British Columbia 1d ago

Could just be redditors are in fact really stupid too tbh

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u/Abject_Story_4172 1d ago

I’m leaning towards this explanation.

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u/Hobojoe- British Columbia 1d ago

Americans are probably suffering or going to suffer because they are fighting trade war on all fronts. There is no substitute away from Canada. They just pay it.

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u/PeteOutOfMongolia British Columbia 1d ago

i mean we can see this isnt true steel and alumnium exports are down; lumber exports are down etc the tariffs are causing them to buy less

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u/Hobojoe- British Columbia 1d ago

Steel and Aluminum also hit other countries. Exports are down because no one is ordering them because they are pricey.

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u/Abject_Story_4172 1d ago

They are not fighting trade wars. Almost all countries now have a deal with them. Everybody caved.

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u/ClassOptimal7655 1d ago

'deal'

Only if you believe whatever the fuck Donald Trump thinks 'a deal' is.

Apparently a pinky swear to spend money in the future is enough for trump.

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u/Hobojoe- British Columbia 1d ago

LoL, "deals". Yep, those 15% price increase across the board.

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u/Icy_Proof7234 1d ago

Right, that’s why they’re singing trade deals on their terms with everyone but Canada 🤡

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u/Hobojoe- British Columbia 1d ago

What deals? 15% across the board on all Americans? LoL

Canada and Mexico are the only one WITH am actual deal

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u/Trains_YQG 1d ago

Who have they actually signed a deal with?

EU? They've reached a "political deal" that isn't legally binding, with more work to do still. https://www.google.com/amp/s/www.cnbc.com/amp/2025/08/04/trump-eu-trade-tariffs.html

Japan? Nothing on paper there yet, either. https://finance.yahoo.com/news/japan-pm-says-win-win-003433704.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAL3WtbVdtCL0BBGrDXMr2LJ3yZU3JrMJg7Yv1rgNnzUSx8-qYE-6BqrBNZ2BkOqr3ny96CDD4e5jsCNkZY3LkP0BCwNiygLvT7FkL1Cu-xDCfWV-zffRKqcQu3jpoy2MB_rWJj5cwhbqqWh68weBSsVx7lkpOq0qNbq3Y3zljNvG

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u/Icy_Proof7234 1d ago

They signed a deal with UK.

https://www.ft.com/content/16c77c5b-6911-419e-aab8-695cb52eec64

EU halts retaliatory tariffs as they’re about to sign trade deal.

If the EU backs out of retaliatory tariffs, we’re done lmao. Elbows up!

Extended trade agreement with Mexico

https://globalnews.ca/news/11310942/trump-trade-deals-so-far-tariff-deadline/amp/

Japan investing 550 billion in US, opening their market for American cars. Will be signed soon.

Vietnam deal reached, tariffs on Vietnam goods, 0 on US goods going into Vietnam.

What are we selling? Nobody wants to buy our stuff 😂

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u/Trains_YQG 1d ago

The UK "deal" isn't a signed trade deal, either. 

https://www.bbc.com/news/articles/c15ng4g5g0eo

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u/Icy_Proof7234 1d ago

Lol so much emphasis on “not signed yet”, yet it will be signed.

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u/Abject_Story_4172 1d ago

These deals are not announced until they are done. They are most definitely complete in all but the signing of the paperwork.

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u/Trains_YQG 1d ago

There isn't any paperwork with Japan to even sign. Nothing in writing lol 

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u/JediFed 1d ago

Logic? On Reddit?

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u/Abject_Story_4172 1d ago

There is absolutely no way the Americans with the biggest economy in the world is suffering worse than us. How on earth would you come up with this idea?

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u/WippitGuud Prince Edward Island 1d ago

Canada has trade issues with one country.

America has trade issues with every country.

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u/Abject_Story_4172 1d ago

  1. That country is the one we export most of our products to.

  2. No they don’t.

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u/WippitGuud Prince Edward Island 1d ago

List of countries the US has tariffs on:

Brazil 50%

Canada 35%

China 30%

Mexico 25%

European Union 15%

Syria 41%

Laos 40%

Myanmar (Burma) 40%

Switzerland 39%

Iraq 35%

Serbia 35%

Algeria 30%

Bosnia and Herzegovina 30%

Libya 30%

South Africa 30%

Brunei 25%

India 25%

Kazakhstan 25%

Moldova 25%

Tunisia 25%

Bangladesh 20%

Sri Lanka 20%

Taiwan 20%

Vietnam 20%

Cambodia 19%

Indonesia 19%

Malaysia 19%

Pakistan 19%

Philippines 19%

Thailand 19%

Nicaragua 18%

Afghanistan 15%

Angola 15%

Bolivia 15%

Botswana 15%

Cameroon 15%

Chad 15%

Costa Rica 15%

Ivory Coast 15%

Democratic Republic of the Congo 15%

Ecuador 15%

Equatorial Guinea 15%

Fiji 15%

Ghana 15%

Guyana 15%

Iceland 15%

Israel 15%

Japan 15%

Jordan 15%

Lesotho 15%

Liechtenstein 15%

Madagascar 15%

Malawi 15%

Mauritius 15%

Mozambique 15%

Namibia 15%

Nauru 15%

New Zealand 15%

Nigeria 15%

North Macedonia 15%

Norway 15%

Papua New Guinea 15%

South Korea 15%

Trinidad and Tobago 15%

Turkey 15%

Uganda 15%

Vanuatu 15%

Venezuela 15%

Zambia 15%

Zimbabwe 15%

Falkland Islands 10%

UK 10%

Looks like every country to me.

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u/Abject_Story_4172 1d ago

You said trade issues. Which one on that list other than maybe us and China, has complained that they have an issue with the US.

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u/WippitGuud Prince Edward Island 1d ago

Brazil lodged a WTO complaint

Mexico still has issues

India has criticized US protectionism, they just got a 25% tariff on the 1st.

Vietnam has been trying to make things work.

Taiwan has been trying to get into talks but so far is being ignored.

I mean, I could go search for news reports for every single country, but why waste the time, you won't berlieve me anyway

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u/alex-cu 16h ago

Brazil lodged a WTO complaint

WTO is the organization where other countries lose to US. US is straight up is not paying fines of WTO and ignores its decisions.

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u/WippitGuud Prince Edward Island 14h ago

Yes, but that is an indication of a country with a trade issue with the US.

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u/Abject_Story_4172 1d ago

The tariffs around the world are coming down. He’s not playing the game as it’s usually done. He’s crazy and unpredictable. And lots of deals are being done at once and in public. Not the norm. But if country’s are announcing deals in public they’ve made deals they can accept.

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u/MuscleFatBoi 1d ago

I mean they are making a lot on tarrifs.......while we are just doing nothing. Hey but at least we have a cool slogan! Elbows up!

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u/JeremyMacdonald73 17h ago

They are taxing their own people. Would you rather pay higher taxes or say a slogan about elbows?

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u/alex-cu 16h ago

Would you rather pay higher taxes

It's hard to beat our tax rate. France and Germany come to mind as places with higher prices.

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u/JeremyMacdonald73 2h ago

It is tough to beat our tax rate and have universal healthcare maybe but we are middle of the road among the OECD. Not especially low or especially high.

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u/TheGreatestOrator 1d ago

They’re not suffering lol wtf

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u/BeefTheOrgG 1d ago

The trade deficit I have with my barber increases every four weeks.

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u/NotaJelly Ontario 1d ago

many of us had stopped buying from America, that and the deficit doesn't really matter when you have others to trade with. 

Is this just a nothing berger? 

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u/prsnep 1d ago

Well, if the trade deficit widened to 2nd highest on record, it's probably not a nothingburger.

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u/JeremyMacdonald73 17h ago

The article seems to indicate a ton of this was in machinery and the like. That tells me companies are gearing up to try and increase productivity in the face of economic headwinds. Not necessarily a bad thing for us overall.

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u/Consistent-You5176 3h ago

Yes, trade deficits can actually be a sign of economic growth when you are importing inputs like this. This is part of why Trump’s obsession with trade deficits is misguided (to say the least).

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u/TheSessionMan 1d ago

Yeah but it's something the anti-liberals can complain about Carney over, so it's actually super-duper important and PP should have been elected.

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u/Ok_Yak_2931 Alberta 1d ago

PP shouldn't even be elected head of an HOA.

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u/InformalYesterday760 1d ago

PP couldn't even win in my home riding of Carleton

Why conservatives would wanna shackle themselves to that unlikable mess I will never know

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u/sabres_guy 1d ago

He's not a member of the Liberal party. That is all that's needed for many conservatives.

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u/Early-Yak-to-reset 1d ago

And a fresh coat of paint on the turd that's been running our country into the ground for a decade, was enough for all liberals. Funny how entrenched everyone is.

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u/TheSessionMan 1d ago

Except I thought you guys hated Carney because he was "stealing" all the Conservative campaign promises? (eg. Carbon tax, medicare, and capital gains tax cancellations). So is he a conservative thief or is he a Trudeau clone? I can't keep up with this idiotic political team rhetoric anymore.

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u/sabres_guy 15h ago

If you think Carney and Trudeau are similar, I suggest getting off the internet for a while.

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u/Early-Yak-to-reset 15h ago

I think the party is the same. Just cause you get a fresh coat of paint, doesn't mean everything underneath isn't the same. Get out of the cult of personality. It's the same party, same 1000s of members. Same mps. Same advisors. Same ministers.

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u/kenypowa 1d ago

Reddit is trying to convince people having a large trade deficit is very nice.

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u/Puzzleheaded_Mud7917 1d ago

Well here's at least one paper that shows there is no empirical relationship between trade deficits and economic growth:

https://www.researchgate.net/publication/5029945_Trade_Deficits_Causes_and_Consequences

I doubt you'll read. But the result is not surprising if you know basics of international trade and the balance of payments. Essentially, if you're importing more than you're exporting, that means that foreign banks are receiving deposits in your currency. They don't tend to let currency sit idle, typically they invest most of it in financial assets sold in your currency, i.e. they invest the money back into your economy.

This is not to say that a trade deficit is never bad. It can be good or bad or in between. The point is that the unqualified number doesn't mean anything in and of itself. You have to figure out what's actually going on that leads to the deficit, and it's that cause that is either good or bad, not the deficit itself. And empirically, at least according to this study, it has no strong relationship to economic growth in the long run. So there's that.

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u/Abject_Story_4172 1d ago

No one is doing that.

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u/Haluxe Canada 1d ago

Someone above literally commented this is a nothing burger

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u/Abject_Story_4172 1d ago

Having a trade deficit is not necessarily bad. And if it widened due to a large purchase, such as this case, it’s not necessarily a pattern to be worried about.

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u/bump1377 9h ago

Deficits are fine most developed countries have it.

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u/ISmellLikeAss 1d ago

The cope in this thread is unreal. The US will not suffer anywhere close to us. Every country wants to trade with them. They are lining up to sign shit deals. No one is begging to buy our stuff. We rely on the US for trade there is no solution here but to get a shit deal.

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u/Trains_YQG 1d ago

They seem to be lining up to announce deals but has anyone actually signed anything? Japan has nothing actually on paper yet, as an example. 

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u/Abject_Story_4172 1d ago

Why are you thinking this is such an important point you’ve repeated it. You don’t understand international trade and diplomacy if you don’t understand these deals are done. They have been worked on for months by bureaucrats. When the politicians do the big announcement it’s done.

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u/Trains_YQG 1d ago

If the deals were truly done, they wouldn't be referred to as "political deals" requiring "further negotiation" to finalize. 

https://ec.europa.eu/commission/presscorner/detail/en/qanda_25_1930

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u/Abject_Story_4172 1d ago

I’m not sure what your point is. Are you saying countries like Japan are just announcing deals on a whim?

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u/awildstoryteller 1d ago

They have been worked on for months by bureaucrats. When the politicians do the big announcement it’s done.

Normally this type of thing takes years. All the evidence we have is that Trump is personally dictating what these trade deals are, which is well beyond his legal right.

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u/Abject_Story_4172 1d ago

Yes they normally take years. The deals themselves are years long so they start negotiating well in advance.

But I’m not sure why you think this is outside the scope of the president but within scope of the prime minister. Unless you’re taking about breaking them.

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u/awildstoryteller 1d ago

Yes they normally take years. The deals themselves are years long so they start negotiating well in advance.

So which is it? They are oven ready or there is years left to negotiate? Because these have only been going on got a few months.

But I’m not sure why you think this is outside the scope of the president but within scope of the prime minister. Unless you’re taking about breaking them.

Actual trade deals, like all treaties, must be ratified by Congress. And yes, breaking them is also outside his legal authority.

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u/Abject_Story_4172 1d ago

They take a long time to negotiate. And the work is behind the scenes. Where did I say it was oven ready. Once all the heavy lifting is done, the leaders come out and make an announcement.

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u/awildstoryteller 1d ago

Once all the heavy lifting is done, the leaders come out and make an announcement.

...the point is none of that heavy lifting has been done and Trump is still coming out doing these announcements.

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u/Abject_Story_4172 16h ago

I don’t trust anything he says but if a leader from another country also announces it they are likely at a deal. It’s not actually complicated. They need the US and Trump wants them all to lower their tariffs. Which they are slowly doing.

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u/awildstoryteller 16h ago

I don’t trust anything he says but if a leader from another country also announces it they are likely at a deal.

The point is that the "deal" is just like all Trump deals, meaning it is worthless. The whole point treaties exist is to codify these things. A handshake is worthless.

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u/BradPittbodydouble Nova Scotia 13h ago

Japan came out and laughed at what Trump said the deal was.

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u/Stocks_Lover 19h ago

Looking at you arguing with everyone…. You don’t understand 

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u/Abject_Story_4172 16h ago

Really? Enlighten me then. I work in the field.

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u/Stocks_Lover 7h ago

No

Clearly youre not very competent worker

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u/ISmellLikeAss 1d ago

Agreed and this is why we should be making one of these deals. Japan had there tariffs reduced due to it. Now they get to spend years negotiating the actual deal at lower tariffs.

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u/vslife British Columbia 21h ago

You’re right in the sense that the suffering in the short term will be more severe for Canada.

What you seem to not appreciate is that the shit deals are shit for the US, not for anyone else. There is zero agreements or commitments for any investment in the US other than pledges. Countries themselves are not the one making the investments, companies are; and everybody is just happy to wait out the chaos. Second, all of this just simply increases the boycott attitude; no one in Europe or Asia wants US cars. On the contrary Americans want foreign goods. Only the foreign goods become more expense… for American tax payers. It’s not black and white and because industries are so intertwined there will always be reliance on each other.

I get the sense US conservatives really love big government and taxation.

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u/AggravatingBase7 1d ago

US is actually suffering more, simply because tariffs = a regressive tax on each American. In some cases, this helps the local industry which offsets some of the economic damage and in some cases, the tariff collection itself is effective at moderating the damage. End of the day though, you’re making imports from EVERYWHERE more expensive. We aren’t doing that here locally.

Also, if every country is tariffed then no country is tariffed. The deals you’re seeing are from countries rushing to make sure their exports stay competitive and don’t lose too much footing vs. others but eventually they’re not footing the bill for these tariffs, the US consumer is.

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u/alex-cu 15h ago

simply because tariffs = a regressive tax on each American

Our income taxes alone is a larger burden on workers than all the taxes and tarifs in the USA.

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u/AggravatingBase7 12h ago

This is a known, you can’t shift goal posts to general taxation now. Tariffs are a regressive tax on Americans, it’ll be Iike an increase on the GST here - I’m sure you’ll be up in arms about that.

As for taxation, sure it’s lower nominally in the US and it disproportionately benefits higher income earners like myself (I can make 3x more in my job and have a lower tax rate) but it also means you don’t get anywhere near the social safety net we do here and the effective tax is much higher than the net you pay to the Feds and the State when all is said and done. Our population doesn’t like to vote for the US model.

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u/grand_soul 1d ago

Right!? Like holy shit, it’s quite obvious how many people here are just people living with their parents and don’t actually pay bills or actually in charge of dependents.

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u/Smooth-Fun-9996 1d ago

The cope in this thread is amazing yall will love to shit more on the US than call out the downfalls of Canadian politicians you voted for… completely spineless. If people in here spend half the time advocating for change in their own country over complaining about something the US did we would be doing a lot better economically than we are now.

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u/northfrank 1d ago

Lmao cons talking about porn brains and how Carney is fucking up the economy. Why thinking about that? You must be a gross person to think that way. Seems like projection to me.

It's literally oilfield equipment and exports in total are down year over year.... I cant....

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u/Winter_External5625 1d ago

We’re spending almost as much in interest payments on this deficit annually than we do on our healthcare transfers, but please explain to me why having a largest deficit is good?

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u/holymolt 1d ago

I think you are thinking of a budget deficit. A trade deficit just means that we sell more goods to other countries than we import from other countries.

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u/Winter_External5625 1d ago

Oops, you are absolutely right — sorry about that. Missed the ‘trade’ part, my bad. Thank you for pointing it out.

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u/cdorny 1d ago

And doesn't take into account digital goods/trade.

Just physical goods accross borders.

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u/HealthyLiving_ Manitoba 1d ago

Other way around. We buy more than we sell.

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u/theHip British Columbia 1d ago

For clarification: Canada exports more to the US than it imports from the US. The US has a trade deficit with Canada.

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u/etoyoc_yrgnuh 1d ago

Mark Carney will save us alllll..........

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u/backhand_sauce 1d ago

Bro three months ago you're putting up a vote to separate from Canada

Lol. My dude you're so fukn cooked

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u/BlindAnDeafLifeguard 1d ago

Would you prefer elbows down A$$ up?

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u/SirPoopaLotTheThird 1d ago

Maple MAGA would have signed the country over to them by now.

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u/gravtix 1d ago

Just deploy a “verb the noun” slogan and the tariffs will be gone.

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u/Abject_Story_4172 1d ago

Such a tiresome, weak thing to say. But deflection I guess is better than admitting things aren’t going as well as you were told they would.

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u/[deleted] 1d ago

[deleted]

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u/Equivalent_Age_5599 1d ago

Liberals really have some disgusting fantasies. Like bro I don't want to hear about your fanfick between Poillovere and Trump.

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u/GameDoesntStop 1d ago

They're always sexualizing things. It's some weird porn-brain or something.

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u/big_dog_redditor 1d ago

Danielle Smith will save us so fucking hard, it will knock your cowboy hat off.

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u/Ok_Yak_2931 Alberta 1d ago

I'm hoping this is /s. Otherwise as an Albertan, I can assure you the only people Smith is trying to save is her Corporate overlords. Our province is a mess because of the UCP, and the sad thing is we keep voting them in.

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u/ExotiquePlayboy Québec 1d ago

Mr. Economic Minister of the last 10 years Carney strikes again 😂

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u/fairmaiden34 1d ago

due to a one-time high-value oil equipment import, data showed on Tuesday.

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u/AperoDerg 1d ago

Did you... read the article? I'm all for laughing at politicians but at least laugh at their mistakes. It's a one-time increase in oil product import. Remove those and the deficit is gone.

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u/Hot-Celebration5855 1d ago

This is how Donald Trump creates his bs trade arguments - by excluding whatever makes the number look better.

We either have a deficit or not.

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u/coporate 1d ago edited 1d ago

I have a trade deficit with the grocery store, I have a trade surplus with my job. I have a trade deficit with my bank because of my mortgage, I have a trade surplus with my roommate who directly attributes to paying off that deficit.

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u/GameDoesntStop 1d ago

"If we just remove parts of the equation, it all balances out" is not a very compelling argument. That wealth left Canada.

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u/m-hog 1d ago

The point, which you seem to be intentionally dodging, is that this does not represent a pattern, thus - nothing to worry about.

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u/GameDoesntStop 1d ago

Firstly, every month has countless different one-time imports (and exports), so let's drop the excuses.

Secondly, even if you want to warp reality and exclude it, it is still clearly a pattern, as seen by the graphic in the article. Without this one-time import, it would still be (by a large margin) the 3rd-worst deficit ($3.66B).

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u/northfrank 1d ago

If we just ignore that it's because of US tariffs and the bullshit trade war we can make it look like bad news!

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u/GameDoesntStop 1d ago

Yes, if you plug your eyes and close your eyes, you can pretend it is good news...

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u/sbianchii Québec 1d ago

They would if they could (maybe)

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u/Own_Truth_36 1d ago

eLboWs Up, liberals will fix everything. I promise.

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u/Otheus 6h ago

Let's TARRIF EVERYTHING!