President Donald Trump distorted some facts about trade in a press conference announcing an agreement to replace the North American Free Trade Agreement with the United States, Mexico, Canada Agreement, or USMCA.
President Donald Trump wrongly said that “nobody from this country knew” about Mexico’s value-added tax until after NAFTA was signed. A deputy U.S. trade representative at the time NAFTA was put in place said: “US policymakers, embassy officials and tax authorities were fully aware of Mexico’s VAT system.”
The official U.S. statistics on trade with Canada show that the United States has a trade surplus with our neighbor to the north. The U.S. surplus was $2.8 billion in 2017, according to the Census Bureau. Yet, President Donald Trump has claimed that the U.S. has “close to $100 billion a year loss with Canada” or $17 billion “minimum.”