As the Trade War Worsens, the Trade Deficit Increases

The trade war that the U.S. has unleashed on China continues to ratchet up. The next round of 25-percent tariffs on $16 billion of imports from China will go into effect Aug. 23.

China is committed to retaliate and will implement its own 25-percent tax on $16 billion of imports from the U.S. As the tit-for-tat escalation continues, it is impossible for China to match the U.S. dollar-for-dollar because it imports so much less from the U.S. than it exports.Read More…