Thursday, December 24, 2020

Trump Didn't Fix The Trade Deficit - He Made It Worse


Donald Trump said he was going to fix the trade deficit the United States had with other countries. But the only tool he tried to use was to impose tariffs on other countries (including China and many of our allies and best trading partners). This did noting to correct the deficit. It only made American consumers pay more for imported goods.

The imports kept coming (even though they cost more), but exports from the United States fell -- especially agricultural goods. Angered by the U.S. tariffs, China (and possibly some others) found new places to buy the goods they needed.

After his four years in office, and a ridiculous trade war, Trump has failed to eliminate the trade deficit. In fact, he hasn't even reduced that deficit. It is larger now than the day he was sworn into office.

The chart above (from Axios.com) illustrates Trump's utter failure to eliminate the trade deficit.

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