Our annual oil exports to the U.S. are roughly double our trade deficit. That’s the long and the short of it. The trade deficit simply means the U.S. doesn’t have enough of a competitive advantage in goods and services we want to buy to make up for that. Like them, we’re highly consumerist and import a ton of consumer goods from lower cost countries. The US has a trade deficit with us because they worked to reduceor eliminate their trade deficits with Persian gulf and other OPEC oil states.
Trump’s upset about a trade deficit that can be wholly explained twice over by oil exports from Alberta, but he also wants to revive the Keystone XL pipeline. He wants to punish Canada for the very economic success that he’s actively trying to reinforce. Something about sucking and blowing at the same time…