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In addition, the US has a huge services surplus with Canada driven by sectors like technology, financial services, and intellectual property licensing from companies such as Microsoft, Google, and Amazon.

I do not have year-by-year services numbers. Grok AI notes “Estimates from earlier years and commentary suggest the services surplus could be in the range of $25–30 billion USD annually.”

Spotlight Canada

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Census Department Balance of Trade Data, Chart by Mish

The Imbalance with Canada

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Looking at all this data, I just don’t know how Canada can treat us this poorly.

For more details, please see Trump Postpones “Liberation Day” to Focus on the “Dirty 15”

Damn. I was all geared up for liberation.

Reciprocal Tariffs

Reader: “Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them.”

Me: USMCA IS reciprocal right now. In extremely minor instances where it isn’t, TRUMP negotiated the deal.

Please read over and over Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement

The above post contains over a dozen instances in which Trump bragged what a great deal.

It was such a great deal that Trump thanked Mexico and Canada. Notably USMCA is “Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!”

Good deal or not (and I think it was a very good deal for the US), the fact of the matter is Trump has no legitimate right to unilaterally break a deal ratified by the Senate 89-10.

The additional pertinent fact is Trump just proclaimed to the world that he may not honor any deal, even those he signs.

At some point there is a cost to this lack of trust.

Related Posts

March 31, 2025: Harley-Davidson Demands Reciprocal Tariffs if Europe Targets its Bikes

I am geared up for reciprocal, counter-reciprocal, and counter-counter-reciprocal tariffs with no one yet defining reciprocal.

February 2, 2025: Trump Claims “We Have All the Oil We Need”

By volume, we are reasonably close. But by grades of oil US refiners need, we aren’t. Here are the details.

March 22, 2025: Should the US Import Oil from Venezuela Instead of Canada?

The answer to this question is seemingly obvious, but ….

But “Trump Considers Extending Chevron License to Pump Oil in Venezuela”

I sarcastically commented “This makes perfect sense because Venezuela is a much better neighbor than Canada.”

March 24, 2025: Trump Announces 25 Percent Tariffs on Countries that Buy Venezuela Oil

I eagerly await Trump’s major announcement for Venezuela to be the 53rd state.

Q: Since a total halt of Canadian oil would eliminate the US trade deficit with Canada, should we stop importing Canadian oil, then eliminate all tariffs on Canada?

A: Don’t be silly. To do that Canada needs to become the 51st state.

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