Editor: I wish that the Courier would get guest columnists that know what they are talking about. In the June 23 edition, both Rich Lowry and Bob Frankin took shots at President Trump because of his tariffs on Canada. Canada is not the only country the President is targeting. He sees that many of our so-called allies are taking advantage of us, by dumping goods into the U.S., while imposing higher tariffs on goods going into their countries.
Our trade deficit is $46.2 billion a month this year. Looking forward, it is estimated that our balance of trade will be -$52,000 billion in the next 12 months. In reality, this means fewer jobs for Americans and more jobs in the other countries. When a country undergoes a trade deficit there are predictable negative results that influence economic growth and stability. If imports are larger than exports, American jobs will be lost to those in the other countries.
There was a $17.5 billion goods deficit with Canada in 2017, and a $71.1 billion goods deficit with Mexico. The U.S. trade deficit with China was $376 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion.
China buys so many treasury notes that it is the largest lender to the U.S. Japan is the second largest. As of February of this year, our debt to China was $1.18 trillion. That’s right! We owe China a very large debt. That’s 19 percent of our total public debt. Money that you and I owe to China; and you think that your credit card debt is high. This debt gives China political leverage over U.S. fiscal policy. Just think what would happen should China call in this loan.
President Trump was right when he said, “The United States has an $800 billion dollar yearly trade deficit because of our very stupid trade deals and policies. Our jobs and wealth are being given to other countries.”
He also stated, “From Bush one to present, our country has lost more than 55,000 factories, 6 million manufacturing jobs and accumulated trade deficits of more than $12 trillion.”
Trump instructed his trade team to consider $100 billion in additional tariffs on Chinese products. This would be the second set of tariffs imposed on China in a couple of weeks.
No matter how you look at it, whether it is a loss of manufacturing jobs, or a huge debt that we will have to pay back some day, trade deficits are hurting you and me.
We have to have good trade policies to further strengthen our economy and keep China from buying America.
Our trade deficit is $46.2 billion a month this year. Looking forward, it is estimated that our balance of trade will be -$52,000 billion in the next 12 months. In reality, this means fewer jobs for Americans and more jobs in the other countries. When a country undergoes a trade deficit there are predictable negative results that influence economic growth and stability. If imports are larger than exports, American jobs will be lost to those in the other countries.
There was a $17.5 billion goods deficit with Canada in 2017, and a $71.1 billion goods deficit with Mexico. The U.S. trade deficit with China was $376 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion.
China buys so many treasury notes that it is the largest lender to the U.S. Japan is the second largest. As of February of this year, our debt to China was $1.18 trillion. That’s right! We owe China a very large debt. That’s 19 percent of our total public debt. Money that you and I owe to China; and you think that your credit card debt is high. This debt gives China political leverage over U.S. fiscal policy. Just think what would happen should China call in this loan.
President Trump was right when he said, “The United States has an $800 billion dollar yearly trade deficit because of our very stupid trade deals and policies. Our jobs and wealth are being given to other countries.”
He also stated, “From Bush one to present, our country has lost more than 55,000 factories, 6 million manufacturing jobs and accumulated trade deficits of more than $12 trillion.”
Trump instructed his trade team to consider $100 billion in additional tariffs on Chinese products. This would be the second set of tariffs imposed on China in a couple of weeks.
No matter how you look at it, whether it is a loss of manufacturing jobs, or a huge debt that we will have to pay back some day, trade deficits are hurting you and me.
We have to have good trade policies to further strengthen our economy and keep China from buying America.
Len Calderone
Midway