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— ABC News (@ABC) May 15, 2018 It's crazy to think that only a few weeks ago, Trump was boasting about how he was cancelling the Trans Pacific Partnership, a major trade deal. It's like the pendulum is swinging back. The president’s trade policies have caused some big reverberations. The US trade deficit reached its highest level in three decades in 2017. According to the Office of the US Trade Representative, the US trade deficit increased to $566 billion in 2017. In contrast, the trade deficit in 2015 was $503 billion. Meanwhile, Trump has often taken credit for a declining US trade deficit, saying, "So far I have been right on trade, I think I'm going to be right on this one also." A trade war between the US and China is one big reason behind the recent declines in the trade deficit. But while Trump was often lauded for standing up to China, he also often criticized Germany, Japan, and other countries in the Asian region over their trade policies. Related: What you need to know about the trade war China In the end, the biggest reason for the rise in the US trade deficit may be the other ways in which Trump has hurt the US economy. The US has been flooded with cheap imports from China, hurting American workers. China has targeted the US economy in its retaliation for Trump’s tariffs. In response to the Trump administration's tariffs, Beijing began to implement retaliatory tariffs on more than $3 billion worth of US products. For instance, the US imposed a 25% tax on $250 billion worth of Chinese imports, which included electronic and medical equipment, computer parts, and vehicles. China has also responded to Trump's decision to raise tariffs on $200 billion worth of Chinese imports, by increasing the amount of Chinese steel allowed into the US. And because of Trump’s decision to impose tariffs, America’s allies have been doing their best to protect themselves from China's retaliatory tariffs. Related: Why Trump's tariffs on China will harm American consumers and businesses Europe Trump’s trade policies have caused some reverberations in Europe, too. Because of Trump’s decision to impose tariffs on steel and aluminum, the European Union has begun to place a 25% tariff on American automobiles. The European Union has imposed similar taxes on US goods since the early 1990s. But this is the first

 

 

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