Question

a,b and c are answers for previous questions!

a) In 1949 at Q3 the real exports in the US were greater than imports, which the real exports were $7.754 billion.

b) The real trade deficit in 1989 was $94.144 billion at Q3.

c) The real trade deficit in 2017 was $653.924 billion at Q4

Now, the question is:

After reviewing the real trade deficit compared to the real trade deficit when you were born, explain why or why you don’t support President Trump’s position on Steel and Aluminum Tariffs.

Anyone has an opinion about what is happening here? if yes, please write brief explanation!

Answer 1

The trade deficit has increased considerably year on year in the United States of America. The reason are low cost import from China and other Asian countries. States is major importer of capital goods which amounts to $ 653 billion. The trump government has decided to reduce it for the betterment of economy.

Yes I support the decision of Trump government as it will lead to job creation. Presently countries like China and India are exporting steel and iron to states and in turn creating jobs in their own country but now after this move those companies will come to United States and will create jobs. From economics point of view this is an awesome move.

Earlier rules were placed like anti dumping duty which were not as effective as 25% tax on steel and 10% on aluminum.

In long term this will lead to reduction in deficit.