Why Trade Deficits Can Be Good, But Tariffs Can Be Terrible, by J.D. Meyer

1. https://www.investopedia.com/news/why-deficits-are-flawed-measures-unfair-trade “Why Deficits are Flawed Measures of Unfair Trade,” by Michael Kolakowski. The USA consumes more than it produces, and it doesn’t save.

2. https://www.investopedia.com/articles/economics/08/trade-deficit-effects. “In Praise of Trade Deficits,” by Michael Schmidt. “Increasing trade deficits can be a sign of strong GDP. They will not create a drag on GDP, and any potential downward pressure on the local currency is actually a benefit to that country.”

3. http://money.cnn.com/2018/03/14/news/economy/what-is-a-trade-deficit/index.html “Trade Deficit Isn’t Always a Bad Thing,” by Christine Romans “The money that flows to other countries doesn’t simply disappear. It becomes cash that in many cases has to be reinvested. And where does it go? Back to the United States, parked in Treasury bonds, stocks, real estate, factories and other investments. America imports goods, and other countries export capital in return.
The last time the United States ran a trade surplus, Gerald Ford was president and the country was in the middle of a recession.”

4. https://www.msn.com/en-us/money/markets/canada-is-slapping-tariffs-on-dollar128-billion-of-us-goods-%E2%80%94-here-are-the-states-that-stand-to-lose-the-most/ar-AAy7gKv “Canada is slapping tariffs on $12.8 billion of US goods — here are the states that stand to lose the most,” by Bob Bryan. “Canada is slapping tariffs on $12.8 billion of US goods — here are the states that stand to lose the most.” Ohio, Michigan, New York, Pennsylvania, Illinois, Texas.

5. http://www.newsweek.com/trumps-tariffs-make-no-sense-treating-friends-enemies-senators-warn-953086 “Trump’s Tariffs ‘Make No Sense’ and Treat Friends Like Enemies, Senators Warn,” By Damien Sharkov. “Those set to suffer the most from the new tariffs will be Canada, Mexico and the European Union, who exported $23 billion worth of steel and aluminum to the U.S. last year.”

6. https://www.forbes.com/sites/stuartanderson/2018/06/11/evidence-that-new-tariffs-not-immigrants-costing-jobs/#1ffcfdc8313f “Evidence That New Tariffs, Not Immigrants, Are Costing Jobs,” by Stuart Anderson. “Sixteen jobs would be lost for every steel/aluminum job gained;…One reason for this result is that nearly 40 times more people in America work in jobs that use steel and aluminum than in jobs connected to producing steel and aluminum. “American workers making steel/aluminum: 170,000. American workers consuming steel/aluminum: 6.5 million,” notes trade attorney Scott Lincicome.”

7. http://fortune.com/2018/06/09/donald-trump-trade-deficit-terrified-g7-speech/ “Why American Businesses Should Be ‘Terrified’ After President Trump’s Comments on Trade,” by David Z. Morris. “In fact, the U.S. has a global surplus in service exports – Americans sell more to other countries than they buy from them. Once they’re added back to the tally, the overall U.S. trade deficit drops to $566 billion – 30% lower than Trump’s number….In reality, the U.S. has a trade surplus with Canada.”

8. https://www.bloomberg.com/news/articles/2018-06-12/the-1-4-trillion-u-s-surplus-that-trump-s-not-talking-about “The $1.4 Trillion U.S. ‘Surplus’ That Trump’s Not Talking About,” by Bloomberg News “For China, the image of a massive trade deficit with the U.S. “is at odds with the fact that Chinese consumers own more iPhones and buy more General Motors cars than U.S. consumers,” wrote Zhang in the report. “These cars and phones are sold to China not through U.S. exports but through Chinese subsidiaries of multinational enterprises.”…”The U.S. also ran sales surpluses with nations including Mexico and Canada but had deficits with Japan and Germany last year, Zhang wrote.”

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