Fact Checking Trade Rhetoric of Trump

In defending his threatened new tariffs on steel and aluminum, President Trump has issued a series of statements on trade agreements and tariffs. Here is a guide to rhetoric. Since this is a quick summary, we do not forgive Pinocchios, but many of his claims are greatly exaggerated.

“We’ve lost $ 800 billion in recent years – not half a million dollars, not 12 cents, we’ve lost $ 8 billion a year, that’s not going to happen, we need to get it back.” Trump, comments to reporters, March 5

We’ll explain that until we’re blue, but the countries are not losing money on trade deficits. For some reason, the president must have missed that lesson in the business class when he took part in it. Wharton: A trade deficit simply means that people in one country buy more goods from another country than the people from the first country who buy those products Want to buy overseas, either because of the quality or because of the price of a trade war and duties were increased on Canadian or Chinese goods, then it would increase the cost of these products to Americans. Perhaps this would reduce American purchases of these goods, thus reducing the trade deficit, but that would not mean the United States would “lose money”. Meanwhile, trade deficits are also affected by macroeconomic factors such as the relative strength of currencies, economic growth rates and savings and investment disentanglement


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