Paul Wiseman in Time:
Trump and his trade advisers insist that the rules governing global commerce put the United States at a distinct disadvantage. But mainstream economists—whose views Trump and his advisers disdain—say the president has a warped idea of world trade, especially a preoccupation with trade deficits, which they say do nothing to impede growth.
The administration accuses other countries of erecting unfair trade barriers to keep out American exports and using underhanded tactics to promote their own. In Trump’s telling, his tariffs are a long-overdue reckoning: The U.S. is the victim of an economic mugging by Europe, China, Mexico, Japan and even Canada.
It’s true that some countries charge higher taxes on imports than the United States does. Some manipulate their currencies lower to ensure that their goods are price-competitive in international markets. Some governments lavish their industries with subsidies to give them an edge.
However, the United States is still the second-largest exporter in the world, after China.
More here.
Enjoying the content on 3QD? Help keep us going by donating now.