March 7, 2019

Trump, On Trade

From The New York Times:
America’s trade deficit in goods with the rest of the world rose to its highest level in history last year as the United States imported a record number of products, including from China, widening the deficit to $891.3 billion and delivering a setback to President Trump’s goal of narrowing that gap.

The increase was driven by some factors outside Mr. Trump’s control, like a global economic slowdown and the relative strength of the United States dollar, both of which weakened overseas demand for American goods. But the widening gap was also exacerbated by Mr. Trump’s $1.5 trillion tax cut, which has been largely financed by government borrowing, and the trade war he escalated last year.
You can read about it here:
For 2018, the goods and services deficit was $621.0 billion, up $68.8 billion from $552.3 billion in 2017. Exports were $2,500.0 billion in 2018, up $148.9 billion from 2017. Imports were $3,121.0 billion, up $217.7 billion from 2017.
Didn't candidate Trump promise to reduce the trade deficit?

Why, yes. Yes, he did - and he said so in Pennsylvania:
In a 2016 campaign speech in Pennsylvania, Trump called the trade deficit a "politician-made disaster" and promised swift change. "We can turn it all around - and we can turn it around fast," he said.
So if it's a politician-made disaster, and he's been in charge for a couple of years (along with his political party, until recently) doesn't that mean that he's to blame?

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