Wednesday, February 8, 2017

US Trade Deficit, Rising Dollar & Broken Campaign Promises

US trade deficit will worsen as the US dollar, driven by rising rising interest rates and steady safe haven capital flows from Europe, rises 'unexpectedly' against majority currencies in the coming years. A stronger dollar, a trend that supports cheaper imports, will not only exacerbate the trade deficit going forward but also hamper America's ability to isolate itself from the global economy and community.

Campaign promises to bring jobs back to the USA will hit its own 'Wall' when a rising dollar makes foreign manufactured goods even cheaper.  Enacting or raising tariffs on the basis of fair or fairer trade will only make foreign goods that fill American stores and online outlets more expensive.  The end result will be lower standard of livings for the majority and growing anger over another round of broken campaign promises. 

Headline: U.S. trade deficit hits highest level in four years

The U.S. trade deficit rose slightly in 2016 to $502.3 billion, marking the highest level in four years and underscoring the difficulty the Trump administration faces in bringing the nation’s trade outlook back into balance.

The trade gap widened last year because exports fell faster than imports, the result of a weak global economy and a stronger dollar that made American products more expensive to foreign buyers.



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