Officials from the US Commerce Department and Canadian Finance Ministry are scheduled to speak right now. As that meeting gets underway, JPMorgan is out with a scathing note, calling the US talking points " economically, politically and geologically illiterate."
They highlight a few things to make that point:
1) Canada ranks as one of the smallest components of the US trade deficit despite being the second largest trading partner of the US, with Canada responsible for around 3% of the US trade deficit.
2) When you strip out the discounted oil and gas that Canada sends the US, the US runs a large trade surplus with Canada.
3) They can't find any way to make any kind of math work to even speculate how Trump comes up with his talking point around a $200 billion 'subsidy' to Canada.
"Even if you take the entire bilateral deficit including energy, and add in Canadian defense spending by 3% of GDP, you still don't get anywhere near Trump's $200 billion figure"
Aside from JPMorgan, I would also highlight that reciprocal tariffs against Canada are also nonsense. According to WTO data, US goods exported to Canada pay just a 1.1% tariff rate on all goods sold.
"The notion that bilateral energy deficit with Canada are 'subsidies' is economically, politically and geologically illiterate," the note says JPMorgan.
I expect some better headlines coming out of today's meetings at the White House but USD/CAD traders are on edge with the pair up 64 pips to 1.4432 today.
This article was written by Adam Button at www.forexlive.com.Hence then, the article about jpmorgan eviscerates us tariff policy on canada as key meeting gets underway was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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