Trump’s Trade Strategy Wins, With Qualifications news by Hebei Longsheng
| Trump’s Trade Strategy Wins, With Qualifications The U.S. trade deficit fell 6% on a year earlier in May, the first decline since February 2017. That can be counted as a success for the Trump administration’s trade policy given it has specifically targeted the trade deficit. Around one third of the improvement was due to a drop in the goods deficit, though with a 13% rise in exports there are risks from the retaliatory duties being applied by China, the EU, Canada and Mexico among others. The remainder of the decline in the deficit was due to a 7% increase in the services surplus, led by a 12% rise in banking and investment management fees and 10% rise in transport services. Both industries should be retaliation proof but have hardly been a focus for administration trade policy. At the national level there’s little to indicate a change in course for policy. The goods deficit with China increased by 5% ahead of the July 6 tit-for-tat tariff exchange. The deficit vs. the EU rose 5% – likely supporting the section 232 review of autos – while the NAFTA deficit actually fell 6%. The challenge for the latter is procedural rather than economic right now though. Hebei Longsheng Metals and Minerals co., ltd. |
