Question

The US President Donald Trump and his advisors have repeatedly said that they intended to get rid of the US trade deficit.

Question 01: What are the main industries responsible for this trade deficit? Support your answer with numbers

Question 02: What are the main countries responsible for this trade deficit? Support your answer with numbers

Question 03: As of April 8th 2018, list the goods and the countries for which the US has decided to create new tariffs. For these goods, what are the amounts currently imported by the US?

Question 04: List the US goods for which China has decided to create new tariffs. For these goods, what are the amounts currently imported by China?

Question 05: Assume that the new tariffs will decrease both US exports to China and Chinese exports to the US by 30% (only for the targeted goods). Building on your answer on questions 1 to 4, what would be the impact of the new tariffs on the US-China trade deficit? Support your answer with numbers

Answer 1

1- Consumer Products and Automobiles. Consumer product Import-$602bn, Export-$198Bn, Automobiles, Import-$359 and export-$158.

2-Deficit with main countries

1. China - $636 billion traded with a $375 billion deficit.
2. Canada - $582 billion traded with an $18 billion deficit.
3. Mexico - $557 billion traded with a $71 billion deficit.
4. Japan - $204 billion traded with a $69 billion deficit.
5. Germany - $171 billion traded with a $65 billion deficit

3-Steels- $29bn, Aluminium - $22bn Solar Panel- $15bn.

4- soybene cars Chemicals and consumer goods worth $50bn

5-There will be 30% of 636 , $190bn decrease in import by US from China and 30% of 50 is $15bn by China from US.