Trump over the billions of billions of America through Canada and trade policy

Trump over the billions of billions of America through Canada and trade policy

When the designated President Donald Trump recently brought the idea of Annexion Canada into play, he named the main reason that the United States would lose "$ 200 billion" annually on their northern neighbors. With a Press conference in Mar-A-a-Lago cars and wood on the language, which in his opinion would not be needed in the USA.

US defense spending and trade deficit

The majority of the $ 200 billion was attributed to the US defense spending, from which Canada benefits directly. The rest is due to the trade deficit, a Trump-Vance transition officer told CNN.

In 2023, the United States recorded a trade deficit of $ 67.9 billion with Canada, such as Show data from the Ministry of Commerce .

The influence of trade deficits on the US economy

The trading policy is again the focus, since Trump However,

economas such as Joe Brusuelas, chief economist at RSM US, warn against presenting trade deficits exaggerated or classifying them as losses or subsidies, since this would not be a fair representation of the complex mechanisms of US economy. "The designated president sees the world as a zero -sum game: Everything that is not made here or bought elsewhere is seen as a loss, which simply does not apply," Brusuelas told Cnn.

In simple words, A trade deficit exceeds. The United States has had a trade deficit for over 50 years, which is mainly due to goods (but in the service sector it is due to a growing excess).

This trade deficit expanded significantly in the 1990s when globalization increased and the US economy was booming. Over time, the deficit rose to over $ 700 billion in the 2000s before it decreased considerably during the great recession.

The situation in 2023

in 2023, in addition to the $ 67.9 billion deficit with Canada, the United States has increased the deficit with Mexico to $ 152.4 billion, which shows how trade relationships develop. The entire trade deficit of the United States was in 2022 with record-suspect $ 945 billion.

risks of trade deficits

economists argue that trade deficits are not fundamentally bad and rather reflect a strong business location. So Shannon Grein from Wells Fargo came to the conclusion: "Of course you want to stay as close as possible to a balance. But efficiency gains can be achieved by importing certain goods that could be produced more cheaply abroad." But strong dependence on certain countries can be problematic, as the pandemic clarified.

global trade relationships and geopolitical tensions

The trade conflict between the USA and China has the potential to further increase the US trade deficit. Current estimates by the economists indicate that the US trade deficit could possibly reach $ 1 trillion in 2024. The increasing trade voltages could not only have economic consequences, but also change the political landscape of the United States.

"The 1 trillion dollar deficit and excess risk changing the political economy of the United States," remarked Brusuelas. "It promotes great global competition and makes it blossom."

These tensions can have far -reaching negative effects on the entire economy and affect potential key elements such as the aviation industry, since companies like Boeing are heavily linked to trade relationships.