President Trump, United States, Josh Zoom Brin discussed on This Morning with Gordon Deal
The world I mean the next biggest country, denied kingdom only had about one quarter decided the deficit. Is the US Canada is the third-biggest it's something like one eight decides of the. Smaller countries which is part of it but when you, just think about the sheer dollar volume they nobody in the world news creating this sort of imbalanced at the United States is with the way it imports so much more, than experts, speaking with Wall, Street Journal economics reporter Josh zoom Brin and he's written a piece entitled US, increasingly large driver of global trade deficits at. Least according to the International Monetary Fund so is this what? President. Trump is, trying to to address yeah I mean this is very much one of the things that President Trump is Talked about and you know to be clear like this, is a, trend that, has, gotten kinda worse and worse for a number of years so I'm not saying, the map is not saying that President Donald. Trump caused a situation and then yeah on the contrary this? Is. Something that, the president has talked about quite a bit I mean he has Justified some of his trade actions by saying that their goal is to kind of bring down these. Deficits now there's, a lot of skepticism in whether that approach will work because one of the things that dried it seems to drive the large trade. Deficit from the US is in fact that the government has been running such enormous fiscal deficit and that's actually something that. The White House is kind of taken steps to make a little bit. Worse the White House you really kind of. Increased amount of spending reduce the amount of revenue heading towards trillion dollar deficits every single year by their forecasts one, of the only, ways that country can run government deficits that large is by importing more than they export to country can the. Country can't provide all the fuel for what they wanna do they have to reach out countries for it, and so there's, an expectation that although the president has tried to target trade deficit. With his, trade policies Fiscal policies. Are pushing in another direction it's not very clear whether or not the strategy is going to be successful How, about Germany and. Japan which both operate at. A surplus the other way Ray with lots of exports that's right, now Germany and Japan Ardy two biggest surprise. Countries, they don't, have surpluses that are, anywhere as big the US deficit but, they are the two really big ones now you know with Japan in particular. There's kind of a rationale to it which is a. Very old country and it kind of needs to save up now to kind of population can can get, through retirement, so even though Japan has a very large plus kind of thought to be a good reason for it but Germany especially extreme and we know. That's going to be a big focus actually this, week because President, Trump meeting with the head of the. European Union he's meeting with him here in Washington on Wednesday and you know it's. Going to be a big focus the fact it didn't Germany in the year European Union the places to still have a very big imbalance not as big. As the US big amount thanks Josh Wall Street, Journal economics reporter, Josh zoom Brin fourteen minutes now after. The hour on This Morning.