Mexico Jumps Ahead of Canada as the Largest US Trading Partner

Canada had long been the largest trading partner of the US. But this year, Mexico jumped over Canada to take the top spot. However, our biggest trade deficit is still with China.

Through July, total goods trade with Mexico, imports plus exports, is $462 billion. Total trade with Canada is $450 billion and China is a distant third at $322 billion.

US Balance of Trade

If you wish to give Trump credit for reducing the trade deficit with China from $375 billion to $308 billion, then also give him credit for increasing the deficit with Mexico, Taiwan, and Vietnam from $124 billion to $211 billion.

Since Biden kept all of Trump’s tariffs intact, give all the remaining credit to Biden.

Trade Deficits 2023

So far this year, our goods trades deficit in 2023 through July is 88 billion with Mexico, 57 billion with Vietnam, $25 billion with Taiwan and $26 billion with India (not subtotaled elsewhere).

Our goods trades deficit in 2023 through July is a combined $170 billion with Mexico, Taiwan, and Vietnam. It’s $156 billion with China.

Spotlight Europe and Japan

The above chart is amusing.

Our trade deficit with Ireland was not really $67 billion in 2022. That number results from corporate tax shenanigans that make it appear Ireland is some sort of global powerhouse equivalent to Japan and within spitting distance of Germany.

Ireland has the lowest taxes in Europe so US companies have regional headquarters there to play various legal tax games.

The EU is mad at Ireland and of course the US progressives are mad at US corporations.

The US runs a trade surplus with the UK which Trump would call winning. Otherwise, it’s a big string of losses despite trade wars being good and easy to win.

Bombing Mexico

Republicans are mad at Mexico, so mad that at least three of them want to bomb Mexico, not over trade, but drugs.

They did not say how but I suspect drones. It doesn’t much matter how because that would clearly be an act of war that Congress gets to declare.

So far, Vivek Ramaswamy, Trump, and DeSantis have spoken in favor of attacking Mexico.

To stop the drug trade, NY magazine reported Trump Wanted to Fire Rockets Into Mexico and Pretend Like the U.S. Didn’t Do It.

Politico reports GOP Embraces a New Foreign Policy: Bomb Mexico to Stop Fentanyl.

Using military force on cartels without Mexico’s permission “would not be the preferred option, but we would absolutely be willing to do it,” entrepreneur and conservative activist Vivek Ramaswamy said in an interview.

Ramaswamy Needs a Civics Lesson

“It is our responsibility to preserve the Constitution,” said Ramaswamy in a Tweet.

What a hoot.

It might behoove Ramaswamy to learn civics himself. It is an act of war todo what he suggests.

Constitutionally, Congress, not the president gets to declare war. Article I, Section 8, Clause 11: [The Congress shall have Power . . . ] To declare War,

Bombing or sending US troops to Mexico is a belligerent act of war that constitutionally requires such a declaration.

But here we are causally proposing bombing or sending troops to Mexico without Mexico’s permission.

DeSantis was the Johnny-Come-Lately to this warmongering parade. In an attempt to catch the others, DeSantis said he would strike on day one. Lovely.

Hello Republican Candidates, You Can’t Beat Trump If You Sound Just Like Him

For further discussion, please see Hello Republican Candidates, You Can’t Beat Trump If You Sound Just Like Him

On Twitter, several people told me to stick to economics for discussing this sorry state of affairs.

Apologies offered for thinking that bombing Mexico, the largest trading partner of the US, just might have economic repercussions.

What the hell was I thinking? Regardless, who is it again that gets to declare war?