by Mish Shedlock, Mish Talk:
Trump announced no details, but I believe I have a good idea of what he means. Many charts tell the story.
Reciprocal Tariffs
Reuters reports Trump Says He Will Announce Reciprocal Tariffs on Many Countries Next Week.
President Donald Trump said on Friday he plans to announce reciprocal tariffs on many countries next week, a major escalation of his trade war.
TRUTH LIVES on at https://sgtreport.tv/
Trump did not identify which countries would be hit but suggested it would be a broad effort that could also help solve U.S. budget problems.
“I’ll be announcing that, next week, reciprocal trade, so that we’re treated evenly with other countries,” Trump said. “We don’t want any more, any less.”Trump told Republican lawmakers of his plans during budget discussions at the White House on Thursday, three sources familiar with the plan told Reuters. Trump and top aides have said they plan to use higher tariffs on foreign imports to help pay for extending Trump’s 2017 tax cuts, which independent budget analysts say could add trillions of dollars to the U.S. debt.
In a confirmation hearing on Thursday, Trump’s U.S. trade representative nominee Jamieson Greer said other countries will need to reduce barriers to U.S. exports if they want to maintain access to the U.S. market, citing Vietnam in particular.
The China, Vietnam, Mexico Connection
I am very aware of Vietnam. I have been tracking that country for years.
Trade deficits with China have come down but increased dramatically with Vietnam and Mexico.
Evidence is strong that China has circumvented tariffs by masking exports via Vietnam and Mexico.
2024 Balance of Trade Select Countries
2024 Balance of Trade Select Details
- Total Balance: -1,203
- 8 listed countries Below: -948
- Canada: -64
- China: -295
- Germany: -85
- Japan: -68
- South Korea: -66
- Mexico: -172
- Taiwan: -74
- Vietnam -123
Those 8 listed countries account for 948 billion of the total 1.203 trillion US deficit, 78.8 percent of the US trade imbalance.
China is understated by about $100 billion so other countries are overstated by about that amount.
The above data is goods only. The US has a trade surplus in services making the total trade deficit about $918 billion.
Annual Goods and Services Balance of Trade
For details, please see December Had the Second Largest Monthly Trade Deficit in History
The latest trade report will give Trump something more to howl about.
