Protectionism and tariffs are one of the very core Trump beliefs (for over 30 years). He seems to want to act as if any trade deficit is a bad deal and should be "solved".
BTW, I have a hug trade deficit with Amazon. I buy lots of stuff from them (because the prices are good), and they buy nothing from me. And so it is on the international stage. I'm fine with buying greatly reduced-priced electronics from Japan and South Korea. I don't care how much stuff we sell to them. Obviously, predatory trade practices are another matter, but deficits are NOT one one of those practices.
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SO FAR
A) Trump pulled out of TPP. That ceded the making of international rules to the Chinese, who gave him a hearty "thank you". China has now made lots of additional trade agreements with lots of countries, and have invested in lots of countries.
B) Trump railed against NAFTA, while doing little. Now, he has found out that Canada is one of the good guys, with whom we have a trade surplus.
C) Trump put tariffs on timber, washing machines, solar panels, steel, and aluminum. There seems to be little effect this far. The largest effect would happen if other countries began targeting our agriculture exports.
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FUTURE
A) Trump will need to deal with retaliatory tariffs.
B) Trump seems to want to reduce trade with Mexico, through NAFTA "re-negotiations", hurting both countries.
C) MOST IMPORTANTLY, Trump now seems ready to start a trade war with China. He gave up on punishing China for currency manipulation. He has again floated the idea of extensive tariffs. This will hurt consumers. However, this approach is extremely popular. China violates lots of international trade law, with no repercussions.
BTW, I have a hug trade deficit with Amazon. I buy lots of stuff from them (because the prices are good), and they buy nothing from me. And so it is on the international stage. I'm fine with buying greatly reduced-priced electronics from Japan and South Korea. I don't care how much stuff we sell to them. Obviously, predatory trade practices are another matter, but deficits are NOT one one of those practices.
==================
SO FAR
A) Trump pulled out of TPP. That ceded the making of international rules to the Chinese, who gave him a hearty "thank you". China has now made lots of additional trade agreements with lots of countries, and have invested in lots of countries.
B) Trump railed against NAFTA, while doing little. Now, he has found out that Canada is one of the good guys, with whom we have a trade surplus.
C) Trump put tariffs on timber, washing machines, solar panels, steel, and aluminum. There seems to be little effect this far. The largest effect would happen if other countries began targeting our agriculture exports.
=============
FUTURE
A) Trump will need to deal with retaliatory tariffs.
B) Trump seems to want to reduce trade with Mexico, through NAFTA "re-negotiations", hurting both countries.
C) MOST IMPORTANTLY, Trump now seems ready to start a trade war with China. He gave up on punishing China for currency manipulation. He has again floated the idea of extensive tariffs. This will hurt consumers. However, this approach is extremely popular. China violates lots of international trade law, with no repercussions.
