For the first half of 2018, the trade deficit in merchandise and services registered a decline of $ 291.2 billion, the federal government reported on Friday, which is more than last year and from 2008 to keep the country's largest annual deficit Keeps the country on track.
Trump has repeatedly promised to reduce the trade deficit during its White House tenure, but till now, it has been grown under its watch.
They claim that the "massive" trade deficit of America indicates that the country is being beaten by China, Germany and others, and they blamed the deficit on "very stupid" business deals. Most economists do not see trade deficits as a problem. They say that this is a big driving factor behind the high trade deficit this year, that American consumers are buying more stuff. This is happening to a large extent because the US economy is doing well and people feel enthusiastic enough to make more purchases for goods. Trump tax deduction has also helped in promoting purchase for foreign products.
"Although the administration intends to reduce the trade deficit - which is considered as the result of unfair business practices - the implementation of the late-cycle financial stimulus package will increase the pressure on trade deficits in the coming months." The head of American economics at Gregory Daco, a research firm at Oxford Economics.
But Trump does not see it in this way. He sees the trade as a zero-sum game where a country is winning and the other is losing. They claim that trade warfare is "easy to win" and they have started a fight with many countries under the pressure of their leaders to come into the conversation table. According to the Washington Post Tariff Tracker, Trump has so far imposed tariffs on imports less than 4 per cent.
Trump has threatened to increase trade warfare to a large extent by imposing $ 216 billion in Chinese products as well as imposing tariff of 25 per cent on all imported cars, trucks and auto parts, which is about $ 360 billion in import Will happen. If tariffs are imposed on China in the coming weeks, it would mean that there are trump tariffs on imports of more than 12 percent, which is likely to have some prices on the increase in the store.
Trump stood outside the White House a week ago and announced victory that it has reduced the trade deficit in the spring, but the figure she used to claim was that it was trading from its first quarter There was a slight decrease in the deficit in the second quarter year He left the fact that the first quarter loss was the highest before the financial crisis.
American exports went up abnormal this spring because other countries arrived to buy US goods before the tariff became effective. The vast majority of economists expect that the growing business will be less than normal exports in the second half of the year to buy before the war. The trade deficit widening in June is an indication that it is starting to play like this.
Economists think that it is wrong to fix trump much to reduce trade deficit. In fact, the only way to cut it is to stop buying so much for Americans, they argue, and they point out that America does not "lose" on business. Americans get cheaper items from abroad, and dollars to go to the dollar and China return to the United States through the purchase of most foreign investment and US Treasury bonds. Under Trump, the United States is returning to the $ 1 trillion annual budget deficit and is looking to help it in the search of foreign investors.
Jim O'Sullivan, Chief Economist of High Frequency Economics, said, "Financially, the trade deficit is not big of a deal." "It is inspired by the fact that the American economy is still strong."
Despite increasing trade deficit, it is still less than 3 percent of the total US economy, O Sullivan notes, which is below 5 percent of the financial crisis. It is unlikely to reduce the trump push losses to impose tariff on imports from China and other countries because Americans still want to buy all these items, so companies can either pay more for imports or other items Countries that are not subject to additional tax, can buy separately
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