President Trump is well into his swing through Asia. And things have gotten a little awkward, as he’s gone after China and Japan for their imbalanced trade relationships with America.
Unfortunately, while Trump is right to question the reigning globalized trade order, he has neither the discipline nor the know-how to build a workable alternative.
Take the two economic powerhouses Trump is visiting during his trip. China and Japan boast the biggest and the second-biggest trade deficit with the U.S., respectively. In 2016, China exported $347 billion more to America than it imported, and Japan exported $68.8 billion more.
Trump views this as a simple zero-sum competition. “I have to say for the last many decades Japan has been winning” on trade, Trump said on Monday. He called our trade deficit with China “horrible” and “embarrassing.”
All other things being equal, America’s trade deficits with China and Japan really do hurt American workers. They mean demand from American consumers is going to create jobs there rather than here, while reciprocal amounts of consumer demand aren’t coming back. So it’s not just specific industries like manufacturing that are hurt; such a trade relationship results in a …read more
Source:: The Week – World