trade deficit

Trump has said he thinks tariffs are needed to reduce the trade deficit with other countries, bring back domestic manufacturing and protect American industries.

He treats a trade deficit with Canada or Japan as just as dangerous as economic dependence on China.

“This is a tariff policy we’ve been told will solve the fentanyl crisis, get rid of illegal immigration, rescue the budget deficit, solve bilateral trade deficits and cure toe fungus,” Wolfers said on MSNBC.

The U.S. trade deficit with Vietnam is about $123.5 billion, putting the country near the top of Trump’s list for “reciprocal” tariffs.

The net result is that the UK may not have much to negotiate here, and yet is being treated very harshly, given there is no US trade deficit.