United States, President Trump, President Donald Trump discussed on This Morning with Gordon Deal

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The US has become an increasingly large. Driver of global deficits accounting for forty three percent of all global deficits last year up from thirty nine percent in two thousand sixteen that's according to the. International Monetary Fund's? Annual assessment of the? State of global imbalances, don't roll, your, eyes, just, yet, the US remained by, far, the largest driver of global current account imbalances in two thousand seventeen running the world's. Largest deficit what's that mean and what's it matter here's Wall Street Journal economics reporter Josh zoom Brin Josh explain what's up well yeah the IMF every year takes a look at the trade imbalances all around the world the that have the biggest trade surpluses the countries that have the biggest trade deficit and what's been happening over time. Is that a, number of countries have kind of gotten these deficits are But one of the ones that haven't been the United States and in two thousand seventeen. The United States? Was by far the? Biggest contributor to to, kind of, imbalance, in, the, global, trading system and it's, and, it's been in the United States has had big trade deficit for a long time. And you know still wanted to take away they've been getting even bigger and last year the United States is about states alone was responsible for about forty three percent they're getting close? To All the trade. Deficits in the world That means we import way more. Than others or more than we export it means the United States imports way. More than it exports, and it does so at a scale it's really. Just unmatched, anywhere else in the. World I mean the next biggest country the United Kingdom only had about one quarter decided to the deficit is the US Canada, is the third-biggest something like. One eight the size of the US and of course they are. Smaller countries which is part of it but when you, just think about the sheer dollar, volume they nobody in the world news creating sort of in Dallas denied skates is with the way it imports so much more than, it 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 on and 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 I'm 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 and 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 has taken steps to make a little bit worse, the White, House really, kind, of increase the amount of spending reduce the amount of revenue heading towards trillion dollar deficits every single year by their forecasts. One of the only ways the country can run kind of? Government. Deficits that, large is by importing more than they export you know the country Can't the country can't provide all the fuel for what they. Wanna do they have to reach out to other countries for it and so there's an expectation that although the president has tried to target trade deficits. With his trade policies his Co. 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 right with lots of exports that's. Right now Germany and Japan Ardita two biggest surprise countries so they. Don't they don't have surpluses that are anywhere as big as the US deficit but they are, the two really big ones now the 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 so. That kind of, so that its population can can get retirement. So even though Japan had very. Like kind of thought to be a good reason for it but. Germany's 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 meeting with, him here in Washington on Wednesday and you. Know it's gonna be a big focus to act it did Germany in the European Union the I wanna dis places is still very big imbalance not as big as the US but very big amount Josh Wall Street Journal economics. Reporter Josh zoom Brin fourteen minutes now after the hour on. This Morning America's first news.

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