Wednesday, July 18, 2018

US trade deficit could fall 30% from the trade war

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The US has been the most beneficiary so far after its trade war debut (as planned) on its trading partners that are causing the US a 700 billion dollar deficit. The trade cap on imports has now been topped at 400 billion dollars of which 234 billion dollars is placed on only Chinese imports, with the total fee adding up to 500 billion dollars.

Despite an equivalent retaliation from China and the EU on the US-placed tariffs, the US remains on the winning side because American imports to these countries outweigh exports by 80%. US exports are worth $180 billion dollars and imports are worth $870 billion dollars a year.

These accelerating measures will reduce the US trade deficit by 30% over the medium term and be reflected in the US economy, as it’s expected to add about a trillion dollars to its GDP and 600,000 jobs, as well as attract major US companies whose factories have migrated from the US since 1996 and reached around 6000 factories.

These measures taken by US President Donald Trump to reduce taxes on domestic companies and the middle class will mainly contribute to the acquisition of the trade war and restore gains to the American economy.

The ADSS strategic team formerly cited that the trade war will continue and that Trump in fact has a clear roadmap and long-term strategy, ideal for economic gain and job creation under the motto, “America First”. As affected countries seek to compensate for their losses by reducing their currencies, the currency war will continue, with the Chinese yuan now registering at its lowest level since 2014.

 
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