Trade Deficit With China Hit Record High
During his campaign, candidate Donald Trump promised to center his focus around the “unfair” trade arrangements between the United States and China, and shrink the trade deficit with that nation. By the end of 2017, the deficit was at a record high. According to Maxwell School economics professor Mary Lovely, who spoke with the Washington Post, the growing deficit could lead to other issues.
“They raise the already high risk of new U.S. tariffs on Chinese imports, almost certainly to be quickly followed by a carefully targeted Chinese response,” she said. “Unfortunately, while destructive of jobs both here and in China, these responses will not move the needle on the U.S. trade deficit.”