Neena Shenai and Joshua P. Meltzer | The National Interest
For many in Washington, the president’s decisions have been all but a declaration of war on the international trading system, an assault on the settled benefits of “globalization” that team Trump has decried from the beginning. But it’s high time “globalists” take some responsibility for the declining constituency for free trade. Now is the time to fix the system, recognize its flaws, and implement the fixes that will again mean prosperity for all Americans.
BY DAVID P. GOLDMAN
A trade war produces only losers and the Washington administration should not operate under the illusion that China is more fragile than the US
Jorge González-Gallarza, E21
President Trump yesterday pledged 10 percent tariffs on another $200 billion of Chinese imports. But economic growth is already eating away at the very trade deficit he’s seeking to ax with these tariffs. Trade data for May, when adjusted for seasonal variation, show that the trade deficit was down $3 billion from April—from $46.1 billion to $43.1 billion.
by David R. Henderson via EconLog
No. Bob Murphy explains why. He points out that a capital account surplus necessarily implies a current account deficit. But, he notes, a current account deficit is not the same as a trade deficit. Why?
Mark J. Perry | AEIdeas