Steven E. White
Trump continues to balance out the United States trade deficit, calling for an aggressive trade war that he hopes will make trading fair and ‘reciprocal’. Many speculate what this war could mean for them, and the U.S. but Trump claims the war will help American workers and industries to prosper. Though it’s being called a ‘war’, it is more of a strategic business deal to save the United States’ resources.
Trump took to Twitter on Saturday, March 3, “The United States has an $800 Billion Dollar Yearly Trade Deficit because of our “very stupid” trade deals and policies. Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!” The exact numeral trade deficit is 796.149 billion dollars. Trump has brought one of his main focuses on aluminum and steel, stating on Twitter, “We must protect our country and our workers. Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!”
Of that 800 billion, the single trade deficit with China is 375 billion. We are currently losing billions of dollars, because of unfair trade with China, each month. Even though Trump is imposing tariffs on steel and aluminum; metals only made about 5% of the imports from China, according to the world bank data. If Trump wanted to really go after China, he’d go place tariffs on incoming electronics, which made up 48% of our imports from them. Who knows what Trump will do. He has yet to show his hand in the ensuing trade war.
As far as trading with the E.U; a major imbalance is the trade in cars. European made cars have little problem pouring into the states, whereas massive tariffs have been placed on U.S. cars, making it nearly impossible to sell American-made cars there. Trump, again, took to Twitter, “If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!”
He continues, “When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!” There’s that word again, ‘Reciprocal’ that he says we’re going to hear “over and over again” in the coming future. It seems he simply wants fair trade with the nations of the world, but to what extent is Trump willing to go in this ‘war’ of goods? Will he cut ties with countries who won’t trade fairly, as he states on twitter, “When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”