President Trump has been consistent in his position regarding trade deficits; he doesn’t like them and has followed through on the promise of using tariffs as a negotiation tactic with large trade partners like China, Europe, Canada and Mexico.
According to Trump, imposing tariffs will make American firms more competitive against foreign companies, restore jobs and revive moribund US industries, with no repercussions to the American consumer.
Economists disagree, however, and see the trade war nudging the nation’s economy into a recession. So far, tariffs on incoming materials and goods have amounted to a price hike for American consumers, and retaliatory tariffs have caused headaches for US manufacturers missing out on the burgeoning Chinese consumer class.
