Trade War Backfires: International Business Times

As economists had warned, the US trade war is causing pain for both Chinese and US businesses. The US trade deficit hit $621 billion in 2018, the largest level since 2008. The US Department of Commerce reports record US imports of $2.6 trillion in goods for the year. The trade deficit in goods was $891 billion with a surplus of $270 billion for services. “Particularly galling for the Trump administration is the increase in the trade deficit with China, which rose 12 percent to hit a new record at $419 billion last year despite punishing tariffs levied on that country’s exports to the U.S,” reports Arthur Villasanta for International Business Times. “Political analysts now surmise the much higher trade deficit bodes ill for the chances of the U.S. and China reaching a mutually advantageous agreement in ongoing trade talks.” The US imposed tariffs in early 2018 and Trump said trade wars were easy to win. China retaliated and the US added another round. Yet US consumers and businesses need the smartphones and other electronics, most of which are made in China. – YaleGlobal