A significant portion of the trade deficit is due to heavily discounted Canadian crude imports that American oil refineries refine and resell domestically and internationally at a large markup that brings in massive revenues.
American lobbying has to date successfully prevented Canada from building up its refinery capacity. Now that Trump doesn't seem to like this arrangement, Canada will likely simply stary refining its own crude.
This will definitely reduce the US trade deficit but may not be good overall for the American economy.
The blanket generalization that all trade deficits are subsidies is flat out wrong. You need to look into the details to determine whether a given trade arrangement is beneficial for the US or not.
American lobbying has to date successfully prevented Canada from building up its refinery capacity. Now that Trump doesn't seem to like this arrangement, Canada will likely simply stary refining its own crude.
This will definitely reduce the US trade deficit but may not be good overall for the American economy.
The blanket generalization that all trade deficits are subsidies is flat out wrong. You need to look into the details to determine whether a given trade arrangement is beneficial for the US or not.