Quote:
Explain how we make more money when Canada cuts off our ability to sell to them while undercutting us in our own market
That's actually pretty easy. We don't have to sell anything to them in order to be better off for buying things from them.
In order for us to be better off, they just need to sell us products that they can produce more cheaply than we can produce them.
We import about $400B in goods from Canada.
About $120B is energy. So, we import a barrel of oil. We make some gallons of gasoline. We are adding value to a commodity through US labor. Who wins, if the oil gets cheaper? The refiner (or the US consumer).
The second biggest category is vehicle manufacturing.
The same part gets shipped across the border 4 times. They send us a drive train. We sell an F-150. The value is created in Detroit. The profit goes to the owners of Ford Motor Company shares, and to Ford dealers in small towns throughout America.
We buy about $2B in electric power from Canada. Because they have hydro power, and we don't, we can buy their power cheaper than we can produce our own, at least in upstate NY.
If I am buying cheap Canadian oil and selling gasoline to Europeans, who will pay through the nose, then I am better off.
If I can buy cheap maple syrup and use it to sell high-profit pancakes, I win.