A trade war with Canada doesn’t make a lot of sense to us. We’ve had two major trade deals with Canada in recent times. The first was NAFTA and the second was Trump’s USMCA.

We were fans of both these free trade agreements and the chart below shows why.

Our trade volume – imports and exports – to and from Canada and Mexico have roughly tripled over the past 30 years. Also look at the upward trend in bilateral U.S.-Canada trade since the passage of USMCA in Trump’s first term. When two nations voluntarily trade with each other, they are both better off. Hard stop!

Our trade deficit – a statistic we don’t care too much about – has been fairly stable with Canada and certainly hasn’t hit any worrisome level.

Trump has often advocated trade reciprocity and a level playing field. We’re all for it, and we’ve always supported ratcheting down North America tariffs to ZERO.

Even for those who are concerned about trade deficits, the deficit with China is still about six times higher than that of Canada.

Our view is that Trump should kiss and make up with our best trade partner and offer up a new zero-for-zero tariff policy, which would level the playing field and greatly benefit both nations.