Trade with Canada

Yesterday we looked at trade with China. Today, we look at Canada, allegedly ripping off America. But what does the data say? Thankfully the Washington Post put together a piece looking at just that topic. And it uses a few interesting graphics to explore the idea.

The easiest and least controversial graphic is that below, which breaks down constituent parts of our bilateral trade.

The article also points out that very small dairy section, which is one focus of the administration's complaints. But look how tiny it is…
The article also points out that very small dairy section, which is one focus of the administration’s complaints. But look how tiny it is…

Note that the graphic does not just show the traditional goods part of the equation, but also breaks out services. And as soon as you consider that part of the economy the US trade deficit with Canada turns from deficit into surplus.

But the graphic also uses a pair of maps to look at that same goods vs. goods and services split.

The centre of it all…
The centre of it all…

Parts of the design of the map like the colours, meh. But the designers did a great job by breaking the standard convention of placing the Prime Meridian at the centre of the map. Instead, because the United States is the story here, the map places North America at the map’s centre. It does lead to a weird fracturing of the Asian continent, but so long as China is largely intact, that is all that matters to the trade story.

This all just goes to show that it is important to begin a conversation about policy with facts and understand the actual starting point rather than the perceived starting point.

Credit for the piece goes to Philip Bump.

The Facts on Tariffs

Unless you avoid the news, we all heard a lot about tariffs this weekend. So this morning, instead of going with some other things I found, I decided I wanted to look and see just what the data is on tariffs. Turns out Trump is wrong on the data about tariffs. In short, in 2016 the US had a slightly higher average tariff for all products at 1.61%. The EU was at 1.6%. And the Canadians? They charged an outrageous 0.8%.

Apologies for the length on this one
Apologies for the length on this one

The data comes from the World Bank.

And over breakfast, I did not really have the time to clean this graphic up, so it shows the whole world. Though it goes to show you, the western countries against which Trump raged this weekend generally have low tariffs, some lower than what the US.

Credit for this one is mine.