In his article on how the Trump’s president has impacted U.S. trade relations with China, Goodman differs with Trump that the United States has continued to perform poorly at the international market. The author refers to Trump’s argument that China is killing businesses in the U.S. by exporting too many good into the country and paying lower taxes. By the end of 2016, the United States trade deficit with China was quoted at $347 billion (Goodman, 2017). With this figures in mind, President Trump warned U.S. administrators of the looming trade disasters that the U.S. would experience for allowing China to continue bringing in more goods. The author however sees increased business ties as a good thing for both China and the United States Goodman, P. (2017). He says that increased ties will not raise unemployment but will instead allow businesses to easily automate their activities and bring in more innovations.
Goodman is making an imperative point in his article. Although president Trump is convinced that the best way to reduce the U.S. trade with China is by taxing the country’s products at relatively higher rates, this may not be the best approach to use. International trade promotes success in both countries involved and cutting business links with China will only increase the deficit Goodman, P. (2017). Also, China is one of the leading economies in the world and trying to keep it off from the country’s business market will hurt U.S.
A good way of reducing the U.S. trade deficit with China is by encouraging more innovation. When the U.S. has created highly innovative products and services, the Chinese citizens and organizations will find value and will contribute more to the U.S. basket. Another way would be to create a system that promotes cost reduction. Currently, U.S. companies are importing more from China because of the reduced prices. Developing good cost reduction methods will place the U.S. at a better situation in the international market.
- Goodman, P. (2017). Behind Trump’s Trade Deficit Obsession: Deficient Analysis. The New York Times. Retrieved April 09, 2017 from https://www.nytimes.com/2017/04/05/business/trump-xi-trade-deficit-china.html?_r=0
