CBS News: Trump’s Overflowing Trade Plate

Despite US deficits with China, cross-border trade contributes numerous benefits: more total of jobs for each country along with low-cost goods and higher standards of living. With trade boosting economic growth, governments must enact policies that distribute the wealth with a mixture of social services, infrastructure investment and tax reductions. The United States, relying on deficit spending, depends on China and other nations to help finance its debt. YaleGlobal writers have explained these trends in numerous articles. Yet the Trump administration, resenting trade deficits, is poised to disrupt trade relationships with top partners China, Mexico, Canada and Europe. With US-China trade settlement talks just days away, the Trump administration announced plans for a 25 percent tariff on $50 billion in Chinese goods, reports Rachel Layne for CBS News. Meanwhile, US trade negotiators have put North American Free Trade Agreement discussions on hold, reconsider tariff exemptions for Europe and propose tariffs for imported cars. And Congress tightens restrictions for US foreign investment – another job creator. Other countries will retaliate, and Trump supporters may eventually realize that old manufacturing jobs won’t return and such policies hurt US communities by reducing service and other modern jobs. – YaleGlobal Online