What is a trade deficit — and does it matter to the economy? [Yahoo! Finance Canada]
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Source: Yahoo! Finance Canada
The U.S. president-elect wrote that “we subsidize Canada to the tune of $100,000,000 a year" — an apparent reference to a previous claim about a $100-billion trade gap — and said the imbalance “makes no sense.” “Many Canadians want Canada to become the 51st State,” he said in the post, made at 3:23 a.m. EST. In fact, the U.S. trade deficit sat at US$41 billion in 2023, according to figures from the U.S. Bureau of Economic Analysis. What is a trade deficit? On the global stage, countries export some goods and services while importing others. A trade deficit occurs when the dollar value of a country's imports is more than its exports. Each country has an overall global trade balance, as well as various balances with other states they buy and sell with — for example, the one between the United States and Canada. More than $3.5 billion in goods and services cross the border daily, with the U.S. comprising Canada's closest largest trading partner. More than two-thirds of Canad
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