In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion

In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion

WASHINGTON — 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.

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Donald Whatshisname said "trade wars are good and easy to win." This is what Trump said about how he was going to decrease the trade deficit:



According to the Times article:

...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.
...His trade war with Beijing also widened the gap: Stiff tariffs on Chinese goods helped slow China’s economy, crimping American exports, which declined nearly 50 percent in December from the same month a year before.

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This is what happens when a leader institutes bad policies without thinking them through.

Trade negotiations are still ongoing. Lets not judge until we see how this ends up. Something had to change and Trump is tackling it head on. If they end up with a great deal Trump may end up being the greatest President of all time.

Mongidig said:

Trade negotiations are still ongoing. Lets not judge until we see how this ends up. Something had to change and Trump is tackling it head on. If they end up with a great deal Trump may end up being the greatest President of all time.

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First, there is no denying that the current policies created the highest trade deficit of all time.

Second, you are *hoping* that Trump is going to use his miraculous power of negotiation, that so far has failed to materialize, to win some kind of trade concessions. There are numerous problems with that thinking. True, there has been some good news on global trade lately: A full-scale U.S.-China trade war appears to be on hold, and may be avoided altogether. The bad news is that if we do make a trade deal with China, it will basically be because the Chinese are offering Donald Trump a personal political payoff. At the same time, a much more dangerous trade conflict with Europe is looming. And the Europeans, who still have this peculiar thing called rule of law, can’t bribe their way to trade peace.

Third, there are real reasons for the U.S. to be angry at China, and demand policy changes. Above all, China notoriously violates the spirit of international trade rules, de facto restricting foreign companies’ access to its market unless they hand over valuable technology. So you could make a case for U.S. pressure on China, coordinated with other advanced economies, to stop that practice. But there has been little evidence that Trump is interested in dealing with the real China problem. At a recent trade policy conference where experts were asked what Trump really wants; the most popular answer was “tweetable deliveries.”

Fourth, the Chinese did pledge to buy 10 million tons of soybeans. This will please farmers, although it only brings us back to where we were before the Trump tariffs and doesn't undo the previous suffering from previous Trump actions. The point, is that what China is offering doesn’t at all get at the real U.S. national interests at stake. All it does is give Trump something to tweet about and not address anything substantial.

Fifth, the greatest President of all time? I'll have what your smoking.

MTAtech said:

In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion




Donald Whatshisname said "trade wars are good and easy to win." This is what Trump said about how he was going to decrease the trade deficit:



According to the Times article:



This is what happens when a leader institutes bad policies without thinking them through.

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Not to be a wet blanket, but I can offer a bit of perspective.

Prior to the tariff implementation date of Jan 1, the shipping world saw a massive influx of traffic, as suppliers rammed as much foreign material into the States as possible to avoid the tariffs, to the point that I was dealing with shipment delays of over a month. Port congestion continues to be a major issue to contend with, as they continue to work through the backlog - though a significant chunk of that was driven by the shut down as well.

Combined with the drop in imports into trade "enemy" countries from the US, this rush would inflate the trade deficit in 2018, but may not be a good means to forecast this year's deficit.

The measure of success will be in two areas, seen at the end of 2019:

1) Trade deficit - which I would expect to be lower, if this measure was deemed to be successful
2) Increase of cost of materials due to surcharges being passed on by suppliers to American companies to cover the cost of these tariffs, which should not be an issue, IF the goal of bringing back American raw material and down tier component manufacturing is realized.

MTAtech said:

In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion




Donald Whatshisname said "trade wars are good and easy to win." This is what Trump said about how he was going to decrease the trade deficit:



According to the Times article:



This is what happens when a leader institutes bad policies without thinking them through.

Click to expand...

I get it you Libs and of course your liberal media hates Trump. You beg for failure, of course you're used to it being an Oamamfail supporter for 8 yrs. You hate the fact that Trump is trying to balance out our trade imbalance, you have no problem with that. And Obamafail never did anything to better our trade imbalance, so Trump should not either. Then we have China stealing our intellectual capital that Obamafail did nothing to stop China. To you Trump should not do anything either, just let China keep on stealing. Christ this is just like Obamafail did nothing to pull in NK from making Nuks, Obamafail said let NK make all the Nuks they want. So Trump should do the same thing, just sit back and do nothing like Obamafail. Hell Obamafail could not even enforce his own RED LINE, Trump had to do that for him.

Born Free said:

I get it you Libs and of course your liberal media hates Trump. You beg for failure, of course you're used to it being an Oamamfail supporter for 8 yrs. You hate the fact that Trump is trying to balance out our trade imbalance, you have no problem with that. And Obamafail never did anything to better our trade imbalance, so Trump should not either. Then we have China stealing our intellectual capital that Obamafail did nothing to stop China. To you Trump should not do anything either, just let China keep on stealing. Christ this is just like Obamafail did nothing to pull in NK from making Nuks, Obamafail said let NK make all the Nuks they want. So Trump should do the same thing, just sit back and do nothing like Obamafail. Hell Obamafail could not even enforce his own RED LINE, Trump had to do that for him.

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Hmmm... you have to flesh out your position here... you seem to be arguing that its a good thing that trump is causing the trade deficit to increase because even though its failing miserably by all accounts... he is at "least doing something"????!?!?!?

That seems to be a rather odd position to take. I mean whats next? " I recommend that physician... he made my condition WORSE...but hey.. he did something"????

MTAtech said:

In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion




Donald Whatshisname said "trade wars are good and easy to win." This is what Trump said about how he was going to decrease the trade deficit:



According to the Times article:



This is what happens when a leader institutes bad policies without thinking them through.

Click to expand...

I suspect this is more the result of a global slowdown than anything Trump has done. Our economy is booming, most of the rest of the world is not. And to the extent that our trade war with China is to blame, so what? Cite for me a better time to take on China than right now.

Mongidig said:

Trade negotiations are still ongoing. Lets not judge until we see how this ends up. Something had to change and Trump is tackling it head on. If they end up with a great deal Trump may end up being the greatest President of all time.

Click to expand...

Born Free said:

I get it you Libs and of course your liberal media hates Trump. You beg for failure, of course you're used to it being an Oamamfail supporter for 8 yrs. You hate the fact that Trump is trying to balance out our trade imbalance, you have no problem with that. And Obamafail never did anything to better our trade imbalance, so Trump should not either. Then we have China stealing our intellectual capital that Obamafail did nothing to stop China. To you Trump should not do anything either, just let China keep on stealing. Christ this is just like Obamafail did nothing to pull in NK from making Nuks, Obamafail said let NK make all the Nuks they want. So Trump should do the same thing, just sit back and do nothing like Obamafail. Hell Obamafail could not even enforce his own RED LINE, Trump had to do that for him.

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Most economists do not see the trade deficits as "losing" to other countries, the way Trump does. That’s because trade imbalances are affected by a host of macroeconomic factors, including the relative growth rates of countries, the value of their currencies, and their saving and investment rates. For instance, America’s trade deficit narrowed dramatically during the Great Recession, when national consumption faltered. Was it good to have the Great Recession?

There’s no evidence that high tariffs reduce your trade deficit, according to economists in that field. Larry Summers said, "the trade deficit is a terrible metric for judging economic policy." He's right.

So, when government officials create policies based upon false assumptions and when those policies aren't solutions, one shouldn't be surprised when the desired results don't occur.

MTAtech said:

In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion




Donald Whatshisname said "trade wars are good and easy to win." This is what Trump said about how he was going to decrease the trade deficit:



According to the Times article:



This is what happens when a leader institutes bad policies without thinking them through.

Click to expand...

Is it your life's mission to get up every morning and post negative anti Trump threads and your partisan opinions? You have been given reasons for this trade deficit and asked to wait for the final results but NO you have to jump all over Trump as if he has personally hurt you, your family, or the country. There obviously is a reason here for this anti Trump tirade on your part so level with us. How has he hurt you, your family, or the country? Has he cut off some special program to you, your welfare check, some other entitlement program you believe you are entitled to?

You obviously cannot celebrate successes in our economy and offer anything positive. It really is sad to see someone so miserable and so dependent on the President of the United States for one's own personal responsibility issues. Apparently in your world state and local governments aren't needed so let's dissolve them all and make a massive central gov't where they take all the money and send you what they think you need?

Conservative said:

Is it your life's mission to get up every morning and post negative anti Trump threads and your partisan opinions? You have been given reasons for this trade deficit and asked to wait for the final results but NO you have to jump all over Trump as if he has personally hurt you, your family, or the country. There obviously is a reason here for this anti Trump tirade on your part so level with us. How has he hurt you, your family, or the country? Has he cut off some special program to you, your welfare check, some other entitlement program you believe you are entitled to?

You obviously cannot celebrate successes in our economy and offer anything positive. It really is sad to see someone so miserable and so dependent on the President of the United States for one's own personal responsibility issues. Apparently in your world state and local governments aren't needed so let's dissolve them all and make a massive central gov't where they take all the money and send you what they think you need?

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Sorry, I didn't realize that I was supposed to suppress any real news that didn't shine golden light on the Fearless Leader (FL). Yes, the trade deficit increased after FL proclaimed that 'electing him would lower the trade deficit.' Since, we aren't permitted to say that he was wrong, here in Trumplandia, I should have self-censored myself. A Thousand Pardons.

Meanwhile, you unabashedly blame Democrats for anything and everything that has ever gone wrong. Got it.

MTAtech said:

Sorry, I didn't realize that I was supposed to suppress any real news that didn't shine golden light on the Fearless Leader (FL). Yes, the trade deficit increased after FL proclaimed that 'electing him would lower the trade deficit.' Since, we aren't permitted to say that he was wrong, here in Trumplandia, I should have self-censored myself. A Thousand Pardons.

Meanwhile, you unabashedly blame Democrats for anything and everything that has ever gone wrong. Got it.

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All you have done is show your total and complete loyalty and partisanship to the radical Democratic Party and context never matters to you. 24/7 Trump bashing is an obsession with you. I blame radicals for everything as you have totally ignored the official data. Good Democrats don't exist in today's Democratic party because I know and was once one. Your partisanship and policies of personal destruction are on full display. You offer nothing but tax the rich and ignore that approximately 50% of income earners aren't paying any FIT thus giving you zero credibility. your Radical party does nothing but spread misery to everyone else and as you are going to see the electorate is fed up with it as the PAC in Ohio is finding out.

MTAtech said:

...America’s trade deficit narrowed dramatically during the Great Recession, when national consumption faltered...

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So what we got is the trade deficit grows when people make money working:

--and this means we're finally recovering from the 2009-2016 era.

This is what we want isn't it?

Conservative said:

All you have done is show your total and complete loyalty and partisanship to the radical Democratic Party and context never matters to you. 24/7 Trump bashing is an obsession with you. I blame radicals for everything as you have totally ignored the official data. Good Democrats don't exist in today's Democratic party because I know and was once one. Your partisanship and policies of personal destruction are on full display. You offer nothing but tax the rich and ignore that approximately 50% of income earners aren't paying any FIT thus giving you zero credibility. your Radical party does nothing but spread misery to everyone else and as you are going to see the electorate is fed up with it as the PAC in Ohio is finding out.

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Ummm Please explain how pointing out the fact that the trade defict has grown under Trump..after his trade war.. when he said that he was going to lower the trade deficit is

"showing your complete loyalty and partisanship to the radical Democratic Party'?


Are you saying that using actual facts and figures.. makes you a loyal democratic party member...

While using lies and half truths makes you a loyal republican?

Please explain.

jaeger19 said:

Ummm Please explain how pointing out the fact that the trade defict has grown under Trump..after his trade war.. when he said that he was going to lower the trade deficit is

"showing your complete loyalty and partisanship to the radical Democratic Party'?


Are you saying that using actual facts and figures.. makes you a loyal democratic party member...

While using lies and half truths makes you a loyal republican?

Please explain.

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Why Trump didn't shrink the trade deficit in 2018

jaeger19 said:

Ummm Please explain how pointing out the fact that the trade defict has grown under Trump..after his trade war.. when he said that he was going to lower the trade deficit is

"showing your complete loyalty and partisanship to the radical Democratic Party'?


Are you saying that using actual facts and figures.. makes you a loyal democratic party member...

While using lies and half truths makes you a loyal republican?

Please explain.

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Haven't been paying attention have you? This is ridiculous, you have a better option than Trump?

Sent from my SAMSUNG-SM-G930A using Tapatalk

jaeger19 said:

Ummm Please explain how pointing out the fact that the trade defict has grown under Trump..after his trade war.. when he said that he was going to lower the trade deficit is

"showing your complete loyalty and partisanship to the radical Democratic Party'?


Are you saying that using actual facts and figures.. makes you a loyal democratic party member...

While using lies and half truths makes you a loyal republican?

Please explain.

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Post number 4 and Post number 15 but none of that matters as you are simply blinded by hatred for Trump so much that you would all the Democrats to retake the WH with that group of socialists they have running

Conservative said:

Good Democrats don't exist in today's Democratic party because I know and was once one.

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Good Democrats should be... in... any ****ing possible way... measured from your opinions?

:lamo

Please. Nobody gives a **** about your opinion of Democrats, nor is it pertinent to this discussion.

bubbabgone said:

Why Trump didn't shrink the trade deficit in 2018

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Even the most liberal economists say the U.S. trade deficit isn’t necessarily a cause for concern. That isn't the point. The point is that Trump made a big deal that the trade deficit was a sign that America was getting cheated by foreigners. His exact words were, “our jobs and wealth are being given to other countries that have taken advantage of us.” The fact that the president makes important decisions based upon false premises IS a cause of concern.

expat_panama said:

So what we got is the trade deficit grows when people make money working:
View attachment 67252101
--and this means we're finally recovering from the 2009-2016 era.

This is what we want isn't it?

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I’m sorry, your point is incoherent.

The overall trade deficit is always equal to the difference between domestic investment spending and domestic saving (both private and public). That’s just accounting.

MTAtech said:

In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion




Donald Whatshisname said "trade wars are good and easy to win." This is what Trump said about how he was going to decrease the trade deficit:



According to the Times article:



This is what happens when a leader institutes bad policies without thinking them through.

Click to expand...

Trump said we have a trade deficit problem.

We do.

Your link proves this.

What's your point?

code1211 said:

Trump said we have a trade deficit problem.

We do.

Your link proves this.

What's your point?

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My point is that Trump is completely wrong, as summarized in Paul Krugman's column yesterday:

As many people have pointed out to no avail, Trump is all wrong about what trade deficits do. True, at times of high unemployment deficits can cost us jobs. But in normal times they don’t reduce overall employment, nor do they make us poorer.

On the contrary, other countries are sending us valuable goods and services, which we’re paying for with pieces of paper — paper that pays very low interest rates. Who’s winning, again?

Beyond that, however, Trump is completely wrong about what causes trade deficits in the first place. In fact, his own policies have provided an object lesson in the falsity of his vision.

In the Trumpian universe, trade deficits happen because we made bad deals — we let foreigners sell their stuff here, but they won’t let us sell our stuff there. So the solution is to throw up barriers to foreign products. “I am a Tariff Man,” he proudly proclaimed.

The reality, however, is that trade deficits have almost nothing to do with tariffs or other restrictions on trade.

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So, Trump is wrong that the trade deficit is a dire problem. The trade deficit is equal to the difference between private and public domestic investment spending and domestic saving. We have a trade deficit because we have a low savings compared with other countries. His tax-cuts, that lowered public savings, only made our savings rate worse.

Trump is also wrong that the trade deficit can be improved using tariffs, which are paid by Americans, not foreigners.

Thus, we have a president that instituted painful tariffs, that hurt farmers and industrial workers, to combat a non-existent problem that isn't getting solved by the tariffs that he thinks is the solution. It really does matter that policy should be made by people who at least have a clue about what they are doing.

THAT'S THE POINT!

MTAtech said:

My point is that Trump is completely wrong, as summarized in Paul Krugman's column yesterday:
So, Trump is wrong that the trade deficit is a dire problem. The trade deficit is equal to the difference between private and public domestic investment spending and domestic saving. We have a trade deficit because we have a low savings compared with other countries. His tax-cuts, that lowered public savings, only made our savings rate worse.

Trump is also wrong that the trade deficit can be improved using tariffs, which are paid by Americans, not foreigners.

Thus, we have a president that instituted painful tariffs, that hurt farmers and industrial workers, to combat a non-existent problem that isn't getting solved by the tariffs that he thinks is the solution. It really does matter that policy should be made by people who at least have a clue about what they are doing.

THAT'S THE POINT!

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You are basing your argument on the thoughts of Paul Krugman.

I was going to say that this is as bad as... Couldn't come up with an equally sorry example of stupidity.

There is nothing less credible than doing exactly what you have done. Krugman is a tool and party loyal drone of the Democrat Party machine.

MTAtech said:

Even the most liberal economists say the U.S. trade deficit isn’t necessarily a cause for concern. That isn't the point. The point is that Trump made a big deal that the trade deficit was a sign that America was getting cheated by foreigners. His exact words were, “our jobs and wealth are being given to other countries that have taken advantage of us.” The fact that the president makes important decisions based upon false premises IS a cause of concern.

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Well, as the linked article indicated, "U.S. service exports also hit a record high." and is actually indicative of a strong domestic economy.
People here have more to spend and that could involve spending on goods produced overseas. And producers here often import from overseas for components they require.
None of that makes what Trump said a false premise ... just different circumstances than what you're suggesting.

bubbabgone said:

Well, as the linked article indicated, "U.S. service exports also hit a record high." and is actually indicative of a strong domestic economy.
People here have more to spend and that could involve spending on goods produced overseas. And producers here often import from overseas for components they require.
None of that makes what Trump said a false premise ... just different circumstances than what you're suggesting.

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The left will always find something negative to complain about but as you have noticed they never offer solutions to any of their perceived problem issues. As the article stated and you aptly pointed out the American economy is booming, people have more spendable income and are purchasing more goods and services from overseas. Apparently the left would rather see the economy tank thus reducing the trade deficit because people would have less spendable income.