Why did the trade deficit of the US trade deficit be improved for a year?

Economic Daily

The deficit of major trading partners in the United States still increased continuously last year, and I am afraid that the trade war has been the biggest irony in the past year.

US President Trump has launched a trade war since March last year to improve its long -term trade deficit.However, according to the newly announced trade data released by the US Department of Commerce, although the United States has reduced US $ 5.2 billion in the Chinese trade deficit in November last year, the US commodity trade deficit in China from January to November last year increased by 37.6 billion US dollars to 382.3 billion yuan.The dollar increased by 10.9%.This amount is five times that of the United States 'second largest trade deficit country in Mexico, showing that it is difficult to reverse the continuous expansion of the United States' trade deficit in China.

This trade data also shows that despite the Trump administration imposed tariffs on China's sales of goods, American consumers and companies continue to purchase related products from China.The first 11 months increased by 7%.The expectations for improving tariffs have also prompted American companies to buy goods from China in advance.

In response to the problem that the US -China trade deficit is still difficult to shrink, the London Financial Times (FT) columnist Ji Ti explained that first of all, the US economic firepower was fully opened. As the economy grew strong, the United States attacked more Chinese imports; second is tariffs;The cost has been depreciated by the renminbi; in addition, many American companies have already pocked a large number of imported products before increasing tariffs.

According to the European Union, the European Union's trade surplus to the United States last year was a record high.The EU Statistical Administration pointed out that last year's goods exports to the United States increased by 8%compared with the previous year, while the imports from the United States increased by only 3.9%, and the surplus of 139.7 billion euros (about 158.7 billion US dollars) was higher than the previous year., 19.6 billion euros.

The EU's export growth of the United States reflects the strong economic growth of the US tax reduction policy and the government's expansion of expenditure, and has enhanced the demand for imported products in Europe. Under the same, the EU's economic growth has weaker economic growth and suppress the demand for imported products in the United States.

Martin Feldstein, a professor of economics at Harvard University, pointed out that the overall global trade imbalance in the United States is the result of the domestic economic conditions in the United States -that is, investment is higher than savings.Even if China purchase a sufficient amount of American products to eliminate bilateral imbalances, the imbalance of the United States will be transferred to other countries, and the overall imbalance will not decrease.