Chinese households suffer lower living standards while exporters prosper and, in the United States, exporters struggle and consumers benefit. A universal tariff is one way to reduce the trade deficit, Pettis said. Likewise, deficits are posted by Canada, the United Kingdom and Australia, as well as the United States. This year, the U.S. trade deficit is on track to exceed $1 trillion for the fourth consecutive year. China’s trade surplus relative to the size of its economy has dropped in recent years.

Source: Washington Post November 17, 2024 19:32 UTC