collected by :Maolly Tony
If we’re to talk about the balance of trade then we should talk about trade, not just trade in goods.
Reducing a trade deficit through tough, smart negotiations is a way to increase net exports—and boost the rate of economic growth.
Someone talking about the trade balance as a whole might still be wrong but they’re not being nonsensical.
Whatever the trade deficit is, whether it’s important or not, it will always be the trade balance, not the balance only in goods, which is important or not.
The question is important because America’s trade deficit in goods is large and persistent, about $2 billion every day.
As it stated in
Both during and after his campaign for president, Donald Trump was very focused on U.S. trade, and in particular on the fact that the country imports more than it exports, creating a net trade deficit.
“[A] trade deficit automatically implies that the country is saving less than it’s investing,” they point out.
Despite the fact that most economists view the trade balance as a statistic that has no inherent positive or negative value in itself, Trump plainly saw the negative trade figure as some sort of national failing.
In a recent post they explained the basics of national-level trade accounting and pointed out that for a country like the U.S., there are plenty of reasons to be thankful about a trade deficit, not alarmed.
If it implies that there is a current account deficit and, hence, foreigners are investing in your country, then also no.
As it stated in
U.S. Will Reclaim Global Supply Chain, Trump Trade Aide Says
“If we start trying to reduce the trade deficit from one country, the goods will go through another country.
Navarro singled out India for having “notoriously high” tariffs, and said the U.S. trade deficit with Germany will be among the toughest to tackle.
On the campaign trail, Trump championed the idea of reducing the U.S. trade gap, promising to create millions of jobs by bringing back manufacturing positions from overseas.
Navarro said the Trump administration wants to rebuild the American industrial base, reversing the decline in the nation’s manufacturing workforce.
The U.S. is seeking more “reciprocal” trade with countries such as China and Germany in a bid to boost growth, reduce the trade deficit and keep American production capacity out of foreign hands, White House trade adviser Peter Navarro said.