United States, President Trump, Brin Josh discussed on This Morning with Gordon Deal
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 countries 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 or surpluses into check. But one of the ones that happened has been the United. States in two, thousand seventeen the United States was by far the big Contributor to to. Kind of imbalance in the global trading system And it's and it's been of course the United States has had big. Trade deficit for a long. Time and wanted to take away they've been getting even bigger and last year the United States is about, the United States alone was responsible for about forty three percent getting. Close to, half of all the trade deficits in the world that means we'd. 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. Soda scale it's really just unmatched anywhere else in the world I mean Would it be the. Next biggest country deny kingdom only had about one quarter decided? To. Canada's the, third-biggest something like one eight the size of the US of course they are, smaller countries which, is part of it but when you think about the sheer dollar volume they nobody in the world is. Creating sort of imbalance that the United States 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 one of, the things that President Trump has talked about and you know to. Be clear like this is a trend that has gotten 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 on yeah on. The contra This is something that the president has talked about quite a bit I, mean he has justified some trade actions by saying that their goal is to kind of bring down the 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 and 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 is you 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 way? That. Country can, run at of government deficits that large is by importing more than they export, 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 policy's scope There 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 RTD two biggest country so they they. Don't have surpluses that are anywhere, as big as the US deficit but, they are the two really big ones now the with Japan in particular there's. Kind of a rationale to it which is a very old. Country and it kinda needs to save up now so it's kind of related population can can get, through retirement so even though Japan has a very large kind of thought to be a good reason for it but Germany's especially extreme and we know that's. Gonna be a big focus actually this week because, President Trump even, meeting with the head of the. European Union he's meeting with him here in, Washington on Wednesday and you know. It's gonna be a big focus the fact that didn't Germany in the year European Union I wanted to places to still have a very big inbound not as big as. The US 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.