one thing the economists all agree with is that the trade numbers system is inadequate
a large portion of imported products comes from US owned foreign subsidiaries and while the jobs are lost, the profits go to the parent company and its shareholders who are mainly US investors
manufacturing diversification helps with currency risk so most large companies have moved some of their production out of their native countries and placed it strategic areas worldwide to compensate or balance their currency exposure
so when talking about trade deficits, its mainly for PR spin
Canada has this last year setup an ability for our banks to have Chinese currency balances. This means Canadian companies can do business with Chinese companies without using the US dollar as the international currency of choice. We can buy products with Chinese rmb from our own banks. No need to exchange
Canadian for US dollar and for the Chinese to change US dollar to rmb.
The rhetoric which Trump is rumbling about will likely help boost more Chinese/Canadian trade.
Also, China, Korea, and Japan have been forming tax favorable relationships in the hopes of building a tighter supply chain system among each other. Russia have been moving head office of their large industries from Moscow to the east and are beginning to work with this mini trade alliance as well. Independent of the government posturing, the business community is building these strong alliances to wean themselves off of their US market dependencies.
The isolationist stance which Trump is taking might be beneficial in select industries but across the board it will harm them in the end. Their industries will get fat and lazy with the protection of import restrictions and tariffs and the US will find itself non-competitive with the open international markets.
Historically we have learned that subsidies like trade protection ends up creating weaker, dependent industry players. As Trump looks to protect US jobs with legislation, the unions will penetrate those industries quickly and costs will go up. Consumer costs will go up as a result as well. Industry today needs to be competitive in 3 to 4 large international markets to survive.
Not sure how happy the US consumers will be when they find they can buy an Asian imported product from Canada cheaper than the US counterpart available in America.
Just some rants and concerns about Trump thinking he is smarter than a global economic engine.